- The demand for rental apartments in Switzerland continues to rise.
- According to the study, investors are not planning any expansion of residential construction activity. Too little building land, too high prices.
- On the other hand, the situation for condominiums and single-family homes looks more stable.
A new study by the cooperative bank Raiffeisen shows that the number of rental apartments in Switzerland is becoming ever scarcer. More and more regions are affected. An improvement is not to be expected from either the supply or the demand side.
Empty apartments, wrong place
At 1.3 percent, significantly fewer apartments are empty than in the previous year, but the apartments that are still empty are simply in the wrong regions. That’s why such average considerations should be treated with caution: while the market in some regions has already dried up completely, it’s booming elsewhere.
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imago images/Symbolbild
By next year at the latest, Raiffeisen is expecting a higher vacancy rate again – one that will even significantly exceed the average.
If living space becomes scarcer, rents will also rise. Housing will soon become noticeably more expensive for more and more households. In addition, there were already two increases in the reference interest rate this year, which is driving up housing costs.
Home market is cooling off
The situation is different for condominiums and single-family houses. Although homes are also affected by price increases, more offers are being published on online portals again. The number of search subscriptions for condominiums and single-family homes has also fallen by 36 and 39 percent respectively since the corona pandemic.
The supply of homes on online portals have recovered, while demand has fallen – a balance is slowly being restored. According to the author of the study, at least the signs for the home market point to a soft landing.