Real estate: apartments are rare, rents are rising and “this is just the beginning”

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immobileApartments are rare, rents are rising and “this is just the beginning”

A study shows that the supply of housing has not been so low in ten years. The number of new buildings is not keeping pace with population growth.

New buildings, here in February at the Plaines-du-Loup site in Lausanne, are not enough to meet demand.

New buildings, here in February at the Plaines-du-Loup site in Lausanne, are not enough to meet demand.

PATRICK MARTIN/24 HOURS

A current study by Raiffeisen shows that at the beginning of June less than 1% of the Swiss real estate portfolio was offered for rent or for sale on online platforms, we read in the “Tages-Anzeiger” on Thursday. From the bank’s point of view, this relationship between the available properties and the properties placed on the market is a reliable indicator for anticipating trends over three to six months.

According to Raiffeisen, the vacancy rate in June of this year was 1.25%, compared to 1.54% in the previous year according to the Federal Statistical Office. Between 2018 and 2020, this share was stable at over 1.6%.

According to the conclusions of the study, the plentiful supply observed over the past decade is rapidly eroding, leading to an increase in rental prices for about six months observed on real estate platforms. “But that’s just the beginning,” warns the chief economist at Raiffeisen Switzerland in the German-language newspaper. However, the situation is not not the same everywhere in Switzerland according to recent observations.

Ever smaller houses

Trends observed on advertising sites confirm a strong increase in demand in the face of an increasingly limited supply. For every accommodation offered for rent online, there are an average of 5.6 requests per day compared to 3.6 a year ago. At the same time, the number of ads published in June was 40% lower than in the previous six months.

The causes of this situation are related to population growth. The good condition of the labor market in Switzerland attracts foreign workers. The arrival of thousands of Ukrainian refugees also plays a role, writes the “Tages-Anzeiger”.

The interest of households in larger areas, while the trend in new construction is towards less space, is leading to a distortion of the market. Although Swiss apartments are on average 25 square meters smaller than in 2005, the occupied area per inhabitant has hardly decreased.

“We build too little”

Residential construction is far from keeping pace with growing demand. “It’s very clear: We’re building too little,” says Martin Neff from Raiffeisenbank in the “Tages-Anzeiger”. Applications for building permits for apartments have been declining since 2017. The number of building permits granted for rental apartments is declining this year. On the one hand, the tightening of building regulations – especially the enforcement of noise protection regulations – is inhibiting new construction. On the other hand, rising interest rates are slowing down investments in real estate, writes the German-language daily.

(jba)

Kaddouri Ismail

I am Ismail from Morocco, I work as a blogger and online marketer. I am also the founder of the “Mofid” site, in which I constantly publish many important articles in the field of technology, taking advantage of more than 5 years of experience working in the field. I focus on publishing in a group of areas, the most important of which are programming, e-marketing, digital currencies and freelance work.

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