Rents Expected to Rise Again in Switzerland Amid Housing Shortage.

Rents in Switzerland are expected to increase again after a period of slower growth, according to a new study published by Raiffeisen Switzerland. The report suggests that the country’s rental market is entering a new phase of stronger price growth due to ongoing housing shortages and rising costs.

Experts from the bank warn that the temporary stabilisation in rent prices is likely coming to an end. One key reason is that the previous dampening effect from lower interest rates is fading, while new pressures are emerging in the housing sector.

The study highlights that rising energy prices and increased construction costs are also contributing to upward pressure on rents. These cost increases are linked to broader global economic factors, including geopolitical tensions affecting energy markets.

A major concern identified in the report is Switzerland’s extremely low vacancy rate. According to the analysis, demand for rental housing continues to exceed supply, creating strong competition among tenants searching for homes.

Fredy Hasenmaile, chief economist at Raiffeisen Switzerland, stated that the current market conditions point toward significant rent increases. He explained that historically, such low vacancy levels have always led to much stronger rent growth than what has been observed recently.

The report also notes a rise in rental search subscriptions, further confirming sustained excess demand in the Swiss housing market. Experts say this imbalance between supply and demand is likely to keep pushing prices upward in the coming months.

Overall, the outlook suggests that Switzerland’s rental market may experience renewed pressure, affecting both urban and suburban tenants across the country.