Swiss Real Estate Update
Real estate, particularly housing, for Switzerland has always been expensive but a recent report by The Local CH shows that fluctuations for rental costs and apartments maybe where for now at least be better than purchasing a home.
The report finds that at the end of October this year rents were decreasing slightly across the country with housing prices not surprisingly going up in a survey by Immoscout.
Rents have fallen by 0.8% for the whole of Switzerland for the past year but rents remain stable particularly for the cities of Geneva and Zurich.
Prices for apartments have climbed by 1.5% and prices for homes have increased by 0.8%.
Whilst apartment prices are expected to be stable there is an oversupply of rental properties that could drive rates down.
The report states:
“We expect stagnant or falling rents in the coming months. [Tenants] are spoiled for choice and they have increasing bargaining power relative to donors."
For Zurich in the expensive Paradeplatz tram stop location a 70-square metre apartment with three-bedrooms will cost on average 3,760 Swiss francs (€3,390) a month with homepage.ch reporting that this is 520 francs more than two years ago. But like so many cities the further out from the city you live brings the cost of rentals down.
The analysis finds:
"Other very expensive parts of Zurich include the area near the Bahnhofstrasse/HB tram stop (an average 3,320 francs) and at Rudolf-Brun-Brücke (3,330 francs)."
"The cheapest rents are around the Roswiesen tramp stop in District 12. At an average of 1,370 francs, rents here are just 40 percent of the prices you would pay in Paradeplatz."
The city of Geneva has three tram stop locations that have rents of 3,000 francs per month for 70-square metre three-bedroom apartments – Bel-Air and Bel-Air Cité (both 3,040 francs) and Molard (3,010 francs). Due to a shortage of rental apartments in the city of Geneva for some tram locations are at 2,000 francs per month.
The capital city of Bern is less expensive than the Geneva and Zurich markets with the most expensive rents being near the Bärenplatz tram stop (2,480 francs) and other locations along the river. Average rents for the city for 70 square metre three-bedroom apartment units exceeds 2,000 francs.
As for Basel the theatre tram stop location has an average rental cost of 2,130 francs.