Rents in Switzerland up again in second quarter of 2024

The price of rental homes in Switzerland continues to rise, according to the latest quarterly report by the real estate firm Wüest Partner. However, with accelerated building activity on the horizon, an easing on the housing market could be in sight. 

Rents in Switzerland up 6,4 percent in Q2 2024

The index of proposed rents in Switzerland rose by 6,4 percent year-on-year in the second quarter of 2024, according to Wüest Partner’s latest Immo-Monitoring report. The situation doesn’t look much better for those looking to buy a house in Switzerland, with prices rising dynamically in many places. 

The average sale price of condominiums rose by 3,5 percent in the second quarter of 2024 compared to the same period in 2023, and the sale price of single-family homes rose by 2,5 percent. 

Rush of applications suggests construction activity could pick up

According to Wüest Partner, the rate of population growth in Switzerland, coupled with sluggish construction activity, means that “no reversal of the situation is expected in the short term.” However, they did note that the number of building permit applications for apartments jumped by 22 percent in the second quarter of 2024. Applications are outstanding for a grand total of 34.150 units - which could be a sign that construction activity will gain momentum. 

With the permits still pending, however, it remains to be seen whether the large jump in applications will actually translate into an increase in the housing supply. It generally takes several years for a project to progress from the planning application to completion. 

Wüest Partner also noted that the volume of planning applications submitted would still not be enough to meet the demand for housing in Switzerland. They therefore predicted that housing shortages will continue to dominate the Swiss rental market for the time being.