Moving to a new country often brings concerns about finding suitable housing. Since Switzerland is known for having a challenging real estate market, especially for those on a modest budget, you may be wondering about your housing options and how to conduct an effective search. This article provides all the information you need.
Overview of the Swiss real estate market
Various studies indicate a housing shortage in Switzerland, particularly in city centers like Geneva and Zurich, where the population has grown faster than the number of available homes.
However, if you have a reasonable budget and plan ahead, you can find a range of rental options, including studios, apartments, and houses. Foreigners can also purchase property in Switzerland (see the sections below for more details).
The rent and property index
According to the Swiss Federal Statistical Office, rental prices in Switzerland are expected to increase by 1.5% in 2022 and 1.6% in 2023. The Office forecasts that this trend will likely continue and become more pronounced in 2024.
In the fourth quarter of 2023, the Swiss house price index rose by 1.1% compared to the previous quarter. For owner-occupied homes, the average annual increase was 2.2% in 2023.
Median rental price in Switzerland
Here are the median rental prices for different Swiss cantons to provide a clearer picture.
Based on data collected by RealAdvisor (a real estate information and services aggregator) on all real estate agency listings in Switzerland, here's what you should expect:
Canton of Zurich: The median annual rent is CHF 431 per square meter, which means that renting a 100-square-meter apartment would cost CHF 3,591 per month.
Canton of Geneva: The median annual price in the canton of Geneva is CHF 420 per square meter. For example, renting a 100-square-meter apartment would cost CHF 3,500 per month.
Canton of Vaud: The median annual price is CHF 311 per square meter. For a 100-square-meter apartment, count a monthly rent of CHF 2,591.
Canton of Bern: The median annual price is CHF 243 per square meter, meaning renting a 100-square-meter apartment would cost CHF 2,025 per month.
Canton of Aargau: The median annual price is CHF 248 per square meter, meaning renting a 100-square-meter apartment would cost around CHF 2,066 per month.
Canton of Lucerne: The canton of Lucerne's median annual price is CHF 262 per square meter. This means renting a 100-square-meter apartment would cost CHF 2,183 per month.
Canton of St. Gallen: The median annual price is CHF 232 per square meter. For a 100-square-meter apartment, count a monthly rent of CHF 1,933.
Good to know:
This median price applies to the entire canton. Naturally, rental prices in the center of a large city will be higher than those in a rural village within the same canton.
For comparison:
The median rent per square meter in the canton of Zurich is CHF 431 per year, while in the city of Zurich, it is CHF 468.
The median rent per square meter in the canton of Geneva is CHF 420 per year, compared to CHF 464 in the city itself.
The median rent per square meter in the canton of Vaud is CHF 311 per year, while in Lausanne, it is CHF 357.
Keep in mind that rental prices can vary significantly between different neighborhoods within the same city.
Should you buy or rent accommodation in Switzerland?
Switzerland has the lowest homeownership rate in Europe. Since renting is more common than buying property in Switzerland, we've focused on rental values.
According to a study by the Federal Housing Office, only about 36% of occupied homes in Switzerland are owner-occupied. This low rate can be attributed to several factors, including historical restrictions on owning apartments in multi-family buildings before 1965 and the high cost of property purchases.
Buying property in Switzerland as a foreigner
As a foreigner, you can undoubtedly become a homeowner in Switzerland. However, the conditions vary depending on your country of origin.
If you are from a non-EU and non-EFTA country, you will need a Swiss residence permit, and the property you purchase must be your primary residence in order to qualify for ownership.
If you don't live in Switzerland, buying a home is more complicated and requires special authorization under the Federal Act on the acquisition of real estate by persons abroad (BewG, also known as “Lex Koller”).
If you're from an EU or EFTA country, you can purchase property in Switzerland without the same restrictions imposed on non-EU/EFTA nationals. In this case, contacting a real estate agency is advisable, as most property transactions in Switzerland are handled by agents.
The agent will need certain documents, such as your residence permit. However, obtaining a bank loan can be challenging. Swiss banks typically require a down payment of at least 20% of the property's purchase price.
The process with the notary is standard and will be explained to you by your real estate agent.
How to find accommodation in Switzerland efficiently
Conditions in your employment contract
If you're relocating to Switzerland for work, your employment contract might include provisions for help with finding accommodation and covering rent costs. If these are not included, it's worth negotiating these terms with your employer, given the high cost of Swiss real estate.
Typically, expatriation contracts offer the services of a "relocation" agency, which helps with settling in, or support from a real estate agent to assist with the housing search.
Define your search criteria
To increase your chances of finding the right place, research the real estate market in advance and clearly define your search criteria. Consider factors like budget, location, proximity to work, and access to amenities and services.
While budget is crucial, don't overlook other factors that contribute to a comfortable and convenient living environment.
Online agencies and property websites
Make use of specialized real estate websites during your housing search. The leading portals in Switzerland are:
You can also check the Real Advisor website, which aggregates listings from various real estate agencies.
Using a real estate agent is quite common in Switzerland. For rentals, their fees typically range from 6% to 10% of the annual rent collected by the landlord.
Additionally, seek assistance from expat groups and online forums.
Leverage your personal and professional network by informing friends, colleagues, and business contacts that you're looking for housing in Switzerland. They might have useful recommendations or leads.
Explore expat forums like Expat.com for valuable information about housing, neighborhoods, and other tips.
Join relevant community groups on social networks such as Facebook, where you'll find self-help groups and real estate ads posted directly.
Accommodation in Switzerland: What should you look out for?
Equipment
Rental apartments in Switzerland typically have a fitted kitchen, but it's important to check this in advance, as some apartments might not be equipped.
Most buildings have a communal laundry room in the basement, while newer apartments often have their own private laundry facilities.
You'll need to pay a security deposit when renting. This usually amounts to a maximum of three months' rent. Similar to Germany, this deposit is held in a special rental guarantee account in the tenant's name. When you move out, the deposit, including any interest, is returned if there are no issues.
Cancellation
The notice period for ending a lease is usually three months in Switzerland. When you move out, landlords expect a thorough cleaning of the property.
Other considerations
Other important considerations when renting include reviewing any clauses related to rent increases. Rent can only be raised at the start of a new lease term, and the landlord must provide advance notice of any increase.
Also, clarify arrangements like whether you're allowed to have pets, as this may not always be specified in the rental contract.
As a non-Swiss resident, you should also review the internal regulations of the property, especially if you're living in a shared building. These rules cover aspects of communal living, such as the use of shared spaces, quiet hours, and laundry room usage, and may differ from what you're used to.
Good to know:
If disputes arise regarding the lease agreement, tenants and landlords can seek resolution through the Conciliation Authority.
Documents required for renting property in Switzerland
For better chances of securing a rental property in Switzerland, it's wise to prepare a complete application file in advance. Landlords often require various documents when you apply for a rental. Typically, you'll need to fill out a registration form for the landlord or rental agency, which can be found on the Federal Office for Housing's website.
Other information and documents you may be asked to provide include:
- Proof of your monthly income;
- Your employment contract if you are employed in Switzerland;
- Your residence permit or settlement permit;
- A copy of your civil liability insurance policy;
- A certificate from the debt-collection register. This document shows whether any legal actions have been taken against you in Switzerland, such as outstanding debts. It can be obtained from the regional debt enforcement office but is only available to residents. If you're new to the country, you'll need to prove your financial stability with your payslips instead.
Flat sharing in Switzerland
Flat sharing is a common practice in Switzerland, and it is not just among students. In fact, sharing property helps split costs like rent and utilities.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
