Why do Swiss people Rent Homes?FGP Swiss & Alps
Swiss people are known to be very independent. And they like to live in rented homes
People often think living in a rented house does not equate to independence. However, the truth is, living in rented homes can also be an act of independence, especially when you compare it to the traditional living arrangement of people living in houses bought with their own money.
For many years, people thought that renting homes was bad and considered it to be an inferior and unhealthy way of living. However, the truth is, it’s not as terrible as we used to think. Living in a rented house can be just as good as living in your house. Here we’ll discuss the Swiss housing market and why do Swiss people rent homes? Let us discuss below:
The Swiss housing market:
Switzerland is one of the richest countries in the world. It is ranked number three for its wealth. The country has a GDP of $2.5 trillion and has been ranked as one of the safest and most stable countries in the world.
However, the cost of living in Switzerland is much high. There are lots of houses, but the demand is high. In 2017, the number of new homes was almost at record levels. With high demand and limited supply, the rental market has been growing tremendously and continues to grow.
What is the rental market in Switzerland like?
In 2021, there were nearly 1.1 million apartments in Switzerland. Of these, approximately 913,000 were for rent. This is a 12% increase compared to 2020. There were just over 500,000 properties for rent and the number increased by around 35,000 in 2021. In 2021, the rental market grew by 0.4% to reach $12.4 billion.
The rental market is expected to grow to $13.2 billion by 2022. This represents a 6% increase from 2018. The rental growth is predicted to continue in the coming years as more people start working abroad. This means that the demand for apartments will increase as well.
Reasons Why Swiss People Prefer to Live in Rented Homes
1) Fewer Expenses
Buying a house is a big investment. The cost of the house and the related expenses can be quite high. The biggest expense is the mortgage payment. Other than this, you will have to pay regular maintenance charges. You will have to pay for cleaning, repair, and renovation charges.
However, when you are renting a home, you don’t have to worry about any sort of maintenance costs.
2) Easier & Convenient
Swiss people find it convenient to live in rented homes. They can easily shift to a new place whenever they want. Furthermore, it’s also much easier to find a rental home than it is to find a home to buy. It’s so easy to find a rental home that you don’t even need to have a lot of money. you have to understand the size of the property, the number of rooms, or even if it’s near a park or a school as these factors are crucial to your choice. The landlord is going to take care of everything else for you. As long as you’re happy with the location, the price of the property, and the size of the room, you can rent a home without worrying about everything else.
It’s time-saving for them. Buying a home can be a huge task in Switzerland, especially if you have to find a place to buy a home. But if you’re renting a home, you’ll just need to go to the landlord’s office and sign the lease agreement. It is also easier since they will have all of the documents ready to sign.
The Swiss don’t like to be tied down. They prefer to be free to move whenever they need to. Additionally, they enjoy traveling around the country and the world and to change their plans as they see fit. For this reason, they tend to rent their homes rather than own them.
5) Less Financial Risk
You may think that buying a house is a safer option compared to renting a home. However, this isn’t true. Buying a house involves financial risk as well. For instance, if your house value goes down, you will be left with a huge debt. You can end up losing your entire life savings in such a situation. On the other hand, renting a home is much more secure as compared to buying a house. If the rental value of your home goes down, you won’t have any sort of financial burden.
What is the price range for rentals in Switzerland?
In Switzerland, the average price of a single-bedroom apartment is between CHF 2,500 and CHF 3,500 per month. A two-bedroom apartment can cost CHF 4,000 to CHF 6,000 per month. The average monthly cost for a studio apartment is CHF 1,200 and for a two-bedroom apartment is CHF 1,700. A furnished apartment can cost between CHF 1,500 and CHF 3,000 per month.
The housing market is now very stable for Swiss homeowners. The demand for rental properties remains high. However, the supply of rental properties has been decreasing. Currently, due to economical situation, renting is still a better investment than buying for many reasons. In Switzerland, renting provides a better return on investment for the time spent and the risk taken. And, the rent is more predictable. Renting helps you avoid a major housing crisis when a purchase becomes too costly. In addition, renting provides a great opportunity to explore new markets and different lifestyles.