New housing construction in Zurich city reaches five-year high
New data from the statistics department of Zurich has revealed that over 3.000 new apartments to rent were built in the city last year. While the number of new homes built is at a five-year high, real estate agents and experts have warned that rental costs will continue to increase in the Swiss metropolis.
Over 3.000 new apartments built in Zurich
According to the latest figures, 3.047 new apartments were built in the city of Zurich in 2023. This is the highest level of new construction seen in the city since 2018 and reflects an increase of 481 homes compared to 2022. More than half of new apartments were built by private firms, followed by private individuals or condominia (25 percent) and the public sector and housing associations (25 percent).
The majority of new builds in the city were concentrated in the Wollishofen (Kreis 2), Albisrieden and Altstetten (Kreis 9), Oerlikon, Seebach and Affoltern (Kreis 11), Schwamedingen and Hirzenbach (Kreis 12) and Witikon (Kreis 7) districts. Only the centre of Zurich and Fluntern saw no new housing developments.
New construction projects also rising in the Swiss city
What’s more, officials in the city noted that the number of new construction projects is also rising across the Swiss metropolis. “We can expect continued high levels of residential construction activity in the next few years,” the statistics department wrote in a statement.
Officials added that the types of apartments being built were also changing, with new homes for families being replaced by smaller dwellings meant for individual workers or couples. Today, one to three-room apartments make up three-quarters of all new housing built, with 51 percent of new homes in Zurich consisting of just two rooms.
Rental costs expected to remain high in Zurich
However, despite the high levels of construction, rental costs in the city are still expected to remain high. According to the Homegate rent index, rental costs in Switzerland rose by 4,7 percent on average in 2023, the strongest price growth recorded since the study began in 2009.
Indeed, the city of Zurich saw the fastest price rise last year, with asking rents for properties in the city increasing by 13 percent last year. Homegate noted that Zurich’s prices have risen the most due to having the highest demand for housing - a phenomenon attributed to the high levels of immigration caused by the number of jobs available, and the relative lack of housing construction compared to demand.
Homegate concluded that price rises are likely to continue into 2024.
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