FPRE: Slight decline in office rents in Q2
The increase in market rents for apartments continued in the 2nd quarter - especially in Basel. There was a slight decline in rents for offices compared to the previous quarter, but rents are higher than a year ago.
Rents for new contracts for newly built apartments in Switzerland rose by 1.3 % in the 2nd quarter compared to the previous quarter, while they increased by 2.0 % for apartments in older buildings. Compared to the same quarter of the previous year, market rents for new-build apartments are up by 6.7 % and for older apartments by 5.3 %. This is shown by analyses by Fahrländer Partner (FPRE).
Growth of 5% in Basel
Market rents rose in almost all regions compared to the previous quarter. The price increases for older buildings are most pronounced in the Basel region (+5.0%), the Alpine region (+3.5%) and Jura and Eastern Switzerland (both +2.4%). Only the Southern Switzerland region recorded a slight fall in market rents (-1.2 %).
FPRE expects market rents to rise "across the board" in 2024. On the one hand, immigration is likely to remain high in 2024. On the other hand, construction activity is not expected to pick up, which means that not enough apartments will be built to meet demand.
Office: quarterly decline in Zurich and southern Switzerland
Contract rents for new office space in Switzerland are down slightly on the previous quarter (-0.7%), but are still up on the same quarter of the previous year (+4.2%). There are regional differences: compared to the previous quarter, the Lake Geneva (+3.6%), Central Switzerland (+1.6%) and Basel (+0.8%) regions recorded increases, while in Southern Switzerland (-5.0%), Zurich (-3.0%) and
In Eastern Switzerland (-1.2%), reductions in office rental prices can be observed. (aw)
