The problem of empty housing, particularly in the urban periphery, is likely to worsen, with construction activity concentrated in areas with already high vacancy rates. Last year around 59,700 homes did not have any tenants. The bank expects the number to increase to 72,000 in 2020.
Despite continued high demand in urban centres, it has become more difficult to build in cities such as Zurich, Basel or Geneva. This has prompted investors to divert their construction projects to the periphery.
Overall, the construction of housing in Switzerland is stagnating. Last year, the authorities issued significantly fewer building permits for rental units. In 2018, building permits for rental apartments fell by 7%. In the fourth quarter alone, the decline was as high as 20%.
Zurich Cantonal Bank expects the construction of rental apartments to fall from 53,900 last year to 52,600 this year and 50,400 in 2020.
More
More
Several Swiss cities close to reaching limit on second homes
This content was published on
Many cities are close to reaching the 20% limit on the proportion of real estate stock not occupied year-round.
Should Switzerland take measures to support its struggling industries?
Industrial policies are back in fashion, not only in the United States but also in the EU. Should Switzerland, where various industries are struggling, draw inspiration from such policies?
Michelle Hunziker to present Eurovision Song Contest
This content was published on
Swiss-Italian television moderator Michelle Hunziker will be the presenter of the 2025 Eurovision Song Contest (ESC), scheduled for May 13-17 in Basel.
Business travellers face highest public transport costs in Switzerland
This content was published on
Public transport ticket prices for adults in Switzerland are around the European average, according to a study. Swiss senior citizens and business travellers tend to pay more.
This content was published on
The amount of unproductive land in Switzerland has hardly changed in recent decades. Nationwide, it shrank by around 2% between 1985 and 2018.
Rescue teams had hands full at Lauberhorn ski race
This content was published on
From broken bones to heart attacks, the rescue teams had a busy weekend at the Ski World Cup in Wengen, which attracted a record 80,000 fans.
Swiss solar company Meyer Burger secures additional financing
This content was published on
The bridge financing concluded to stabilise the Swiss company has been extended and increased. The company has also launched a takeover process.
Centre Party president rules out run for Swiss government post
This content was published on
Outgoing Centre Party president Gerhard Pfister will not join the race to replace defence minister Viola Amherd in the Swiss government, the politician announced on Saturday.
This content was published on
Parliament has agreed a change to the law aimed at reducing the land area that can be developed. It comes in response to a people’s initiative demanding a 20-year building freeze. There was much debate about construction in mountain areas in the run-up to the March 11 vote on a second homes initiative, which was…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.