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.