Rent costs due to fall in Switzerland in 2022
Despite a decline in the number of vacant apartments, studies show that rental costs will continue to fall in Switzerland over the next year. However, it is predicted that buying a house in Switzerland will remain a challenge.
Rental costs have declined in Switzerland due to continued vacancies
New data from Wüest Partner has shown a decrease in the number of vacant apartments in Switzerland in 2021, despite the number of residence permit holders and citizens remaining around the same. They explain that people looking for rental properties in Switzerland are usually individuals or pairs that have split off from the original family, leading to higher demand.
Despite the increased demand, the report predicted that rent prices will decline by 0,8 percent over 2022, one of the few moments in history when the price of rental contracts in Switzerland will fall. The Head of Communications for Wüest Partner, Robert Weinert, said this was "because the supply of rental apartments is still plentiful and can also meet increasing demand."
Price of homes in Switzerland continues to rise
The pandemic has driven a new desire to look for different types of housing. As remote working has become a necessity in recent years, Wüest Partner found that demand for 3 to 4,5 room properties increased dramatically. Weinert clarified that "since coronavirus, people have been able to work more from home and are therefore looking for properties with more space for home offices."
Despite the good news for renters, Weinert noted that, for people looking to buy a house, the taxes, costs and fees will “continue to rise.” Wüest Partner found that despite a boom in property ownership, current planning regulations have led to “little to no new building land” since 2014. Of land currently zoned for construction, the majority of it is being used to build rental housing.