Zug apartment rent goes from 950 to 4.690 CHF a month after renovations

Though we often hear stories of tenants being priced out of their homes after renovation, a new case in Zug has revealed just how extreme the rent hikes can be. In one development, a home rented for just 950 francs a month in 2018 is now priced at 4.690 francs.

Apartment in Zug causes nationwide uproar

The story concerns a 3,5-room apartment on Chamerstrasse in Zug. The home, built in 1955, is currently undergoing renovations, which the development CEO Robert Plantak said will make it an "upscale" housing development.

This new "upscaleness" is reflected in the price: in future, the 45-square-metre, 2,5-room apartments in the house will be advertised for 2.890 francs a month. 75-square metre flats will cost 3.870 francs a month, while the 3,5 room home will cost a whopping 4.690 francs. For reference, the average rental cost of homes of this size in Switzerland as a whole stands at between 1.575 and 2.304 francs.

Rental costs rise by 400 percent in seven years following renovation

While the high prices may already be making some people’s blood boil, what truly sent the story nationwide is how much the homes used to cost. Back in 2018, the 3,5-room home was being rented for just 950 francs a month, rising to just 2.400 francs a month when the tenants changed in 2021. This means the rent has nearly quadrupled in price in the last seven years.

Canton Zug is often considered to be at the epicentre when it comes to the cost of renting a home in Switzerland. While the region’s low taxes, bountiful jobs and high salaries make it one of the best places to live in the country, its allure has also sent rents skyrocketing as demand for homes increases. In fact, a 2024 report from SRF found that a quarter of the city’s local population has left in the last decade, with most blaming rising rental costs.

Rising rents are a problem in Zug, developer notes

Speaking to the Luzerner Zeitung, Plantak argued that they were simply “orienting themselves” towards average rents on the market. He added that because of the renovations, the new apartments bear no relation to the old property, so their rents should not be compared, despite it being the same building. 

For him, the only solution to the housing problem is to build more apartments in Zug: "In my opinion, politicians are not doing enough here." However, he also conceded that homeowners and property developers bear "a large share of the responsibility for rising prices", as they are taking advantage of the overheated housing market by selling and buying homes “at maximum prices.”

Tenants' Association prepare rent control referendum

Needless to say, the Tenants’ Association of Canton Zug see matters differently, with co-president Urs Bertschi telling 20 Minuten that the rent increases are not appropriate. He noted that by law, property owners are only able to pass on 50 to 70 percent of renovation costs onto tenants. While this does inevitably lead to a rent increase, he said the rates offered on Chamerstrasse are “exorbitantly high” and “unjustified”.

"To luxuriously renovate an old apartment block, which until recently still offered affordable apartments, located between road and rail, and thereby achieve a great return [is] simply greed at the expense of a diverse population," he concluded.

Nationally, the Tenants’ Association have recently launched a new referendum, which will introduce strict rent controls nationwide if approved. You can read more about it in our guide to the Rental Cost Initiative in Switzerland.