Switzerland’s strong economy, high quality of life and political stability continues to support a notable population growth. In fact, Switzerland now has one of the highest immigration rates in Europe. Given that the population is currently close to 9 million, this is having a noticeable impact on key services. Particularly with respect to rental accommodation.
The situation is especially critical in major cities such as Zurich and Geneva. In this post we look at reasons behind the lack of accommodation as well as some of the consequences. In addition, we offer tips when searching for accommodation to rent.
Contributing Factors
- High demand due to migration
A high percentage of people moving to Switzerland are looking for accommodation to rent. This includes expatriates and those not yet settled permanently such as contractors. There are currently over 36’000 open positions in Switzerland. Some of these roles could be filled by contractors meaning these will also need accommodation. - Lack of new construction
The rate of building new housing has not kept pace with the increase in demand. This is partly due to zoning regulations, geographic limitations (mountainous terrain), and a lengthy approval process for new developments. - Rising real estate prices
The cost of land and property in Switzerland is high, making it challenging for developers to build affordable rental units.
Consequences
- Rising rental costs
In regions like Zurich and Geneva, rental prices have increased significantly. Undoubtably, many residents are now finding it increasingly difficult to afford suitable housing. Subsequently, this is leading to higher competition for available rental units. - Long waiting times
Prospective renters now often face long waiting periods or they have to participate in a competitive bidding processes. Nevertheless, there is a short-term viable alternative in the form of corporate styled serviced accommodation. These range in size from a large hotel room with cooking facility to a full sized apartment. The downside: these are generally higher in price than longer term accommodation options. That said, these could be seen as a suitable short-term option. - Increased demand for smaller apartments
As affordability becomes an issue, smaller apartments, especially those in the 1- to 3-room range, are in very high demand. Obviously more so in the major cities.
At the current time, the Swiss government and cantonal authorities are discussing potential solutions. These include easing zoning laws and promoting the construction of affordable housing, but these are longer-term measures that will take time to implement.
Tips for Renters
Switzerland is a relatively small country with an excellent transport network. This makes commuting to work easy and this also increases the geographic search area when looking for suitable accommodation. Renting a place to live in a town or city centre is typically more expensive anywhere and Switzerland is no exception. Our first tip therefore is to look at areas away from town or city centres.
Area Research
The first step is to research an area where you might want to live and learn about property prices there. This can be done online with property comparison or search websites. In addition, reviewing the transport options to determine commute times and costs is also advised.
Selected area: who to contact
Once you have found an area of interest, it is advisable to register your interest with a local estate agent. Describing to these what you are looking for and more importantly, what your budget limitations are is key. It should be noted that many local agents often rent out properties without advertising them first. This makes pre-registration a logical step.
Temporary accommodation as a stop-gap
Given the current market situation, the search for rental accommodation may take longer than planned. As an alternative, there are several online portals which focus on renting temporary furnished accommodation. Moreover, these often specialise on specific geographic areas
Application form for accommodation rental
Typically, the completion of an application form is required when enquiring about accommodation rental. This includes personal data as well as work and personal references. In addition salary information and bank details are also required.
Rental prices
The average monthly rent for apartments varies depending on area and size. There are comparison websites that help the renter establish how much they should pay in certain areas. Generally speaking, prices are cheaper outside of towns or cities. That said, areas of beauty or tourist areas can also be expensive!
Deposit for the living accommodation
A deposit is stipulated by law in Switzerland and this can be up to a maximum of three months’ rent. Traditionally deposits are paid into a special rental deposit bank account which is held in the tenants name. Furthermore, the landlord can apply to withhold some of the deposit (e.g., to cover any damages) at time of departure. However, if the landlord agrees to release the full deposit, it will be returned to the renter with interest. For support in paying the deposit, many people work with SwissCaution . This company manages the deposit on behalf of the renter for a reasonable yearly fee.
Summary
Switzerland is experiencing a significant growth in population. The resultant effects include a shortage of accommodation as well as higher rental prices. If you are moving to Switzerland soon and are looking to rent accommodation, there are several options to consider. Preparation and flexibility are key. Transport links are excellent and rental prices can be researched before an area of interest is selected. One final consideration is tax which is collected at local, cantonal and federal level in Switzerland.
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Michael is a celebrated strategic Marketing and Business development expert with decades of experience and achievements under his belt. He has extensive commercial knowledge in the relocation and travel industry and has specialised in highly individual customer facing services.
As a Swiss national Michael has a broad experience of Switzerland.
