Tag Archives: Property

Home rent could rise 15% in Switzerland by 2026, according to Martin Tschirren, the head of Switzerland’s federal housing office, reported RTS this week. © Elenaphotos | Dreamstime.comTschirren thinks the rental reference rate could rise again over the coming year or two – the rental reference rate is an officially computed figure that reflects average mortgage rates. It is used to set rent levels in many rental contracts in Switzerland. It is reviewed quarterly and the latest rate was...

This week RTS published a map showing which Swiss municipalities have the highest numbers of private swimming pools. Photo by Perfecto Capucine on Pexels.comSwimming pool champions are clustered mainly in Italian- and French-speaking Switzerland. Three of the top ten municipalities are in Ticino, five in Geneva and two in Vaud. Only the commune of Binningen in Basel Landschaft in German-speaking Switzerland makes the top ten. Lugano, in Italian speaking Switzerland, tops the list with...

Between October 2020 and April 2023, Swiss building construction costs rose by 13.9%. On an annualised basis the cost of building has been rising at a rate of 4.3% over this period, a rate higher than general inflation – the consumer price index rose 2.6% over the year to the end of April 2023. Photo by Yury Kim on Pexels.comBuilding costs rose 1% during the month of April 2023, compared to a general consumer price index rise of 0.2%. The worst affected regions were north west...

Every year, home owners in Switzerland who live in their properties must add an imputed rent to their taxable income, adding to their tax bill. The system was introduced in the 1940s to fund government shortfalls during the war. A number of politicians and members of the public have tried for roughly two decades to remove it without success. This week, parliament voted in favour of a plan to phase it out, reported RTS. Photo by ILOVESwitzerland on Pexels.comHowever, removing imputed rent...

Four times a year the rate of interest used to set the rents in Switzerland is reviewed. If the aggregate average mortgage rate goes down some renters can request lower rent. If it goes up some landlords can raise rents. This time the rate rose from 1.25% to 1.50%. Higher rents are likely to follow. Photo by Mikhail Nilov on Pexels.comThe interest rate used to set the rent reference rate was the average rate on Swiss mortgage loans outstanding at 31 March 2023. The average rate this time...

On 15 May 2023, the Federal Statistical Office published its latest residential property price index. During the first quarter of 2023, average Swiss home prices fell by 1.2%, leaving them 3.9% higher than a year before. Photo by marishalaugh on Pexels.comStand alone houses dropped in price by 1.3% while apartments lost 1.1% of their value over the three months to 31 March 2023. Homes losing the greatest value during the quarter were stand alone houses in rural areas (-4.5%). Apartments...

A report published on 4 May 2023 cites land scarcity as the main reason behind Switzerland’s housing shortage. Photo by Max Rahubovskiy on Pexels.comIn the 20 years between 2001 and 2021 Switzerland’s population grew from 7.3 to 8.7 million, a rise of 1.4 million residents or 19%. And with annual net immigration of around 50,000, building enough homes to house everyone in Switzerland is an ongoing challenge. The survey, which aimed to understand the housing situation in cities and...

According to a report published this week, 40% of employees in Switzerland are predicted to regularly work from home within the next 10 years. Photo by Justin Neal on Pexels.comIn 2001, less than 1% of Switzerland’s employees did more than half of their work from home. By 2019, the same figure was 25%. Then Covid-19 struck. During the first lockdown in spring of 2020, 50% of workers worked from home, 20% partially and 30% exclusively. Since then many have returned to the office. But...

Buying has become much more expensive than renting in Switzerland, according to a report by the bank Credit Suisse. Photo by Curtis Adams on Pexels.comThe market for owner-occupied homes is currently undergoing a reversal of fortunes, triggered by the spike in mortgage interest rates in 2022, said the bank. Although owners enjoyed unprecedented low mortgage rates for a decade, rates have more than doubled over the past year. After 13 years, buying is more expensive than renting again....

With Swiss rents high and rising it should follow that more would be invested in building new homes. However, that isn’t the case. The newspaper Blick asks experts why. As rents rise landlords should stand to make more from their investments. Many are also quick to assume that higher rents mean landlords are making excessive profits at the expense of renters. However, in practice it isn’t that simple. Firstly, when deciding to invest investors must consider yield. When the value of...