Discover the latest updates on the Swiss real estate market as rental apartments are on the rise across the country. Despite this increase, demand remains strong, with only a slight easing observed in Zurich. Stay informed on the shifting dynamics of Switzerland’s real estate market.
The Swiss real estate market is experiencing notable changes as the number of rental apartments advertised on real estate portals has increased significantly. However, despite this rise in supply, demand remains robust, with varying conditions across different regions.
Increased Supply of Rental Apartments
Between April 2024 and March 2025, approximately 410,000 rental apartments were advertised across Switzerland, marking a 21% increase (around 70,000 apartments) compared to the previous year. This surge in supply is documented in the OWI Online Housing Index, which is compiled by the Swiss Real Estate Institute for the Swiss Association of the Real Estate Industry (SVIT), the Swiss Homeowners’ Association (HEV), and the real estate portal Newhome.
Factors Behind the Increased Supply
- Unloading of Pent-Up Demand: The rise in advertised apartments is primarily attributed to the resolution of pent-up relocation requests. In 2023, the construction of new apartments was limited, leading to a backlog of tenants eager to find new homes.
- Shortened Advertising Duration: Interestingly, despite the increase in supply, the average duration that rental apartments remain advertised has decreased by 4 to 23 days. This indicates a swift turnover in the market, with properties being rented out more quickly than before.
Regional Variations in Demand
While the overall supply of rental apartments is increasing, demand dynamics vary significantly across Switzerland:
Slight Easing in Zurich
In Zurich, the rental market is showing signs of slight relaxation for the first time since 2021. The city, known for its competitive rental landscape, now has an average advertising duration of 18 days, positioning it in the middle range compared to other Swiss cities. This shift reflects a gradual easing of the intense demand that has characterized Zurich’s rental market for years.
Persistent Demand Across Other Regions
In contrast, demand remains high in most other regions. The OWI index indicates that there is an actual oversupply of rental apartments only in the French-speaking cantons of Neuchâtel and Jura, where average tender times are 38 and 49 days, respectively. The most severe shortage of rental properties is noted in Chur, highlighting the diverse experiences of tenants across different areas.
Influencing Factors in the Rental Market
Several factors are shaping the current rental landscape in Switzerland:
- Interest Rate Changes: The doubling of the reference interest rate at the beginning of 2024, alongside announcements of potential rent increases, may have prompted tenants to seek new housing options. This shift in financial conditions is influencing tenant behavior and market dynamics.
- Potential Market Fluctuations: As of March 4, 2025, the reference interest rate has begun to decline again. It remains to be seen how this change will affect the rental market moving forward. A decrease in interest rates could lead to a slowdown in the current momentum, potentially leading to a more stable or even oversupplied market.
Navigating the Swiss Rental Market
The Swiss rental real estate market is currently characterized by an increase in available apartments alongside sustained demand. While cities like Zurich are experiencing a slight easing, other areas continue to struggle with shortages. As economic conditions evolve, particularly with fluctuations in interest rates, both tenants and landlords will need to adapt to the changing landscape.
For prospective renters, this may be an opportune time to explore options, while landlords might need to reassess their strategies in an increasingly dynamic market. Overall, Switzerland’s real estate market is undergoing significant transformation, presenting both challenges and opportunities for all stakeholders involved.
