Apartment rents and prices rise towards the end of the year
November revealed both rising rents and higher prices for the purchase of condominiums. There is no change in the offers for single-family homes. The resurgence of the pandemic is likely to continue to support property prices for the time being.
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A stiff breeze was blowing against those looking for accommodation in November. With an increase of 1.5 percent, the rents advertised have increased significantly across Switzerland. This difference is put into perspective, however, by looking at the longer-term development: over the past twelve months, the change is much more moderate at 1.0 percent. This is shown by the Swiss Real Estate Offer Index, which is collected by ImmoScout24 in cooperation with the real estate consultancy IAZI AG.
The drivers of the rent increase in November are the Greater Zurich Region and the Central Plateau, each with an increase of 0.6 percent. Due to their market size, they have a disproportionately large impact on the Switzerland-wide rent index. Rents have also risen in Central Switzerland (0.6 percent) and in Eastern Switzerland (0.4 percent). Virtually no changes can be observed in northwestern Switzerland (0.2 percent) and in the Lake Geneva region (0.0 percent), while rents in Ticino have fallen (−0.4 percent).
More expensive condominiums, stable house prices
Those who want to buy a condominium were faced with 0.6 percent higher prices in November than in the previous month. This means that the national average price per square meter is currently around 8030 francs. For a typical apartment with 110 m² of living space, 880,000 francs are required. The asking prices for single-family houses (0.1 percent) hardly changed in November, which corresponds to a square meter price of around 7130 francs. A typical house with 160 m² of living space is advertised for 1,140,000 francs.
«The new corona wave should temporarily support the trend of rising property prices, since in the fragile economic environment hardly any rate hikes on the part of the central banks are to be expected. The duration of this policy, however, depends heavily on the further development of consumer prices, which have recently risen significantly, ”says Martin Waeber, Managing Director Real Estate, Swiss Marketplace Group.
