GREATER ZURICH RESIDENTIAL MARKET

DEVELOPMENT OF RENTS AND SALE PRICES GREATER ZURICH

RENTS AND SALE PRICES BY MARKET AREA

regions Net rent
CHF/m² p.a.
Median
CHF/m² p.a.
Vacancy
Quote in %
advertising period in days purchase price
CHF/m²
Median
CHF/m²
advertising period in days
Baden 170 - 305 215 1.6 41 5 185 - 9 760 6 955 53
Brugg / Zurzach 140 - 255 190 3.0 52 4 065 - 7 845 5 505 79
Einsiedeln 160 - 260 200 1.8 26 4 320 - 10 100 7 040 56
Freiamt 155 - 255 195 2.4 40 4 635 - 8 090 6 205 68
Glattal / Furttal 205 - 365 260 1.1 22 6 980 - 11 865 8 870 46
Höfe / March 185 - 390 255 1.4 27 6 245 - 14 690 8 960 73
Konaueramt 180 - 305 235 1.3 26 6 390 - 10 260 8 370 59
Limmattal 205 - 340 255 1.0 23 7 425 - 13 285 10 085 30
Linthgebiet 160 - 280 215 2.2 39 4 720 - 8 950 6 465 88
Mutschellen 170 - 285 210 2.6 39 5 270 - 10 000 7 090 62
Pfannenstiel 200 - 415 280 1.8 27 7 560 - 17 400 11 795 36
Schaffhausen 140 - 240 185 2.0 50 3 630 - 6 795 5 840 90
City of Zurich 260 - 720 385 0.2 17 8 915 - 19 140 13 950 27
Weinland 150 - 275 200 1.7 36 4 950 - 8 985 6 940 65
Winterthur 185 - 325 240 0.7 24 5 500 - 10 520 7 715 35
Zimmerberg 210 - 410 280 0.7 21 7 860 - 15 880 11 550 42
Zug 215 - 480 310 0.7 12 8 695 - 16 785 11 540 39
Zurich Highlands 180 -305 230 1.8 31 5 620 - 10 330 7 685 49
Zurich Lowlands 175 - 300 225 1.5 30 5 965 - 10 040 7 760 63
The initial lockdown in spring 2020 led briefly to uncertainty on the residential market, although this was quickly overcome. The federal government’s economic stimulus programme boosted confidence among consumers in their income situation. With tenants at home, many had time to look for a new apartment and even to think about purchasing a property of their own. The expectation that a higher share of employees will continue to work from home after the pandemic ends led to an expanded geographic search radius – particularly in the owner-occupied segment. Due to the high demand, even properties in peripheral locations that are difficult to market and previously saw little demand sold quickly. In the residential apartment market, new construction projects and renovated apartments with good transport links were absorbed quickly. In contrast, less attractive existing properties in the wider metropolitan area saw much less interest. This will remain the case as long as the high level of construction activity results in new sought-after apartments on the market. For many, a new apartment remains a status symbol they are willing to stretch themselves economically to attain. Nationwide, the vacancy rate has continued to rise in recent years and is now 1.72% (2020). In contrast, the vacancy rate in the canton of Zurich has stabilised at 0.9% in recent years. However, the opposing trends seen in the previous year intensified further: The vacancy rate stabilised or fell in most market areas in the greater Zurich area. But the vacancy rate in peripheral sub-market of Brugg/Zurzach rose to a record high of 3.0% in 2020. Rents in the greater Zurich remained stable in 2020. As with vacancy rates, however, there were sharp differences, depending on the market area and micro-location. Although rents in peripheral market areas trended downward, they rose in and around the city of Zurich. Furthermore, there was demand pressure in the inner suburbs from the city centre. The collapse of inward migration has no impact here – with no perceptible effect on marketing.

Demand continued unabated in the owner-occupied market in 2020, which led to rising prices as a result of the low supply. Criteria such as good sunlight, the availability of private outdoor space, technical fittings and additional office space increased in importance. In addition, sustainability issues are being raised more often – although price remains the decisive factor. There is growing confidence in terms of favourable interest rates, but many prospective buyers are unable to meet the banks’ more restrictive lending requirements. The pandemic, which has not yet run its course, is likely to lead to a continuation of these trends and to further price increases in the owner-occupied segment, in particular for the rare properties with private space.