Steep rent rises seen across majority of Switzerland
New data from Homegate and the Zürcher Kantonalbank (ZKB) has revealed that the cost of renting a house or apartment has continued to increase in Switzerland. Rental costs have been rising in some major Swiss cities, along with some areas in the mountains and places with competitive business taxes.
Rent rises in some Swiss cantons
The Homegate Rent Index measures the cost of renting in each city and canton of Switzerland every month, based on what is available on the market. The index showed a price increase of 0,26 percent in January 2022, a significant rise as the index only rose by 1 percent in the entirety of 2021.
Canton Nidwalden and Zug saw the highest increases to rent costs, rising by 1,5 and 3,9 percent respectively. Nidwalden has recently introduced the cheapest business taxes in the world, which has led to a high demand for housing.
Mixed fortunes for rent costs in Swiss cities
The index also found that in mountainous areas of Valais and Graubunden, particularly near ski resorts, rents have risen sharply. Other cantons like Schaffhausen and Geneva saw a decline in the cost of rent.
It was a mixed bag for cities in Switzerland in the beginning of 2022; with the exception of St. Gallen and Lucerne, rents have risen consistently in every large city. The strongest growth was seen in Bern, where rents increased by 1 percent in January alone.