Expat rentals in Switzerland set to fall in 2020

Expat rentals in Switzerland set to fall in 2020

Expat rentals in Switzerland set to fall in 2020

If you’re heading to Switzerland to take on a new position, the good news is that renting an apartment is likely to be cheaper in the coming year.

Switzerland is one of the world’s most expensive expat professional destinations, with housing taking up a considerable proportion of even the most generous salary. However, the real estate market is now in oversupply against demand, a situation which could well result in a fall in rentals during 2020.

According to media reports, some 5,000 to 8,000 apartments are expected to be untenanted next year, an increase of 3,000 over this year’s figures. Obviously, rental charges and uptake of rental properties are dependent on the region, with the most expensive located in districts home to a large number of multinational companies as well as across larger cities.

At present, the canton of Zug has the highest monthly rentals per square metre in the entire country at just under 2,000 Swiss francs. An apartment in Geneva would cost around 1,500 CHF, with other cities such as Basel and Zurich on much the same level. Rental agents are expecting a drop of around three per cent by next year’s second quarter, with rentals still the preferred option for Swiss nationals as well as expat professionals due to already high house prices still on the increase.

For expats on long contracts, it’s considered more sensible to rent rather than buy, even although the property market itself is on an upward swing. As a result, rents will either stagnate or fall dependent on demand and location, as tenants are now spoilt for choice and are able to use bargaining power to get further reductions.

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