Rise in rent costs expected in Switzerland as vacancy rate falls
Vacancy rates in Switzerland have declined for the first time in years, leading some to predict a new rise in the cost of renting.
2021 saw first decline in vacancy rate in Switzerland since 2009
2021 was the first time since 2009 that families looking for a house in Switzerland had a fewer selection of properties than the year before. According to the Federal Statistical Office, 7.467 fewer apartments were available for rent, with all housing types being affected. This means that there were 9,5 percent fewer properties to choose from in 2021 compared to the year before.
Until 2021, the Swiss housing market was in the midst of the largest rise in vacant apartments since 1998. The FSO now reports that this year was the “first decline in the vacancy rate in 12 years.” At the moment, there are 71.365 empty apartments, the equivalent of the entire city of Bern, Lausanne or Canton Schwyz.
Rent prices will continue to decline in Switzerland in the short-term
With occupancy rates increasing, it is feared that this will lead to an increase in the cost of housing. Wüest Partner, a real estate consultancy, noted a drop of 10 percent in the rent quoted in Swiss rental contracts since 2015, and they fear that reduced supply and increased demand will cause this trend to reverse.
Credit Suisse economist Fabian Walter claimed that it was only a matter of time before rental prices rise. He predicted that rents will continue to fall in Switzerland for the time being, but at a far slower rate, saying that although prices may increase quickly in some popular locations such as near cities, prices generally will remain around the same for now.