Skyrocketing rents: alarm of abuses in Switzerland in the real estate market

Post on: 31.05.2025

Rents in Switzerland continue to rise, and with them growing concern about abuses in the real estate market. To launch the Alarm è The Swiss Tenants' Association (ASI), which today officially presented a A popular initiative to put a stop to what it defines as a speculative drift to the detriment of millions of citizens.

The title of the initiative è clear: " Yes to protection against abusive rents" . The Objective è introduce a system of automatic rent controls, so as to ensure that rents are based on the real costs incurred by the landlord and on a reasonable income, and are not determined solely by profit.

An unsustainable situation for Swiss households

According to the ASI, in 2024 alone, tenants paid over 10 billion francs in rents considered excessive. This is an enormous amount, which weighs heavily on the power of the purchasing of households and on the balance of household budgets. The The association argues that this situation is now unsustainable, and that the current rules on renting are too permissive towards landlords.

Currently, in fact, it is only tenants who have to contest a rent considered unfair, but there is no automatic control mechanism that can intervene before the economic damage occurs.

Large real estate groups in the viewfinder

One of the main problems, highlights the ASI, concerns the behavior of large real estate groups, in particular those listed on the stock exchange. According to the association, these subjects take advantage of the change of tenant to significantly increase rents, or refuse to apply the necessary reductions when the reference rates decrease.

This practice, which according to experts è now widespread in many cities; Swiss countries, leads to a price inflation that also has direct effects on the value of building land. In cantons such as Zurich, for example, the price of land is increased by 300% in the last twenty years, transforming the from a primary asset to an instrument of financial profit.

A concrete impact on the power of purchase

According to a recent study, more than 60% of Swiss residents now live in rented accommodation. For these people, rents represent the most important item of expenditure. substantial of the family budget. On average, it is estimated that each tenant pays around 360 francs per month more. compared to what would be economically justified.

On an annual basis, this means an excessive outlay of around 4,300 francs per household. A distortion that, on a national scale, translates into billions subtracted from savings and consumption.

Automatic controls for more equi

The president of the ASI, Carlo Sommaruga, stated that the initiative is a key step in re-establishing the Equity; in the rental market. According to Sommaruga, introducing regular and transparent controls would not only reduce rents, but also slow down the race for speculative increases on land, helping to defend the power of the Swiss households.

Collecting signatures for the Initiative Inizierà officially on June 3, 2025. If you have success, could mark a turning point in the regulation of the rental market in Switzerland.