The reference interest rate for mortgages in Switzerland will be updated again on September 2, 2024. The interest rate will remain unchanged at 1.75%. This interest rate is an important key figure for calculating rents, as it serves as the basis for rent adjustments. The stability of the reference interest rate means that tenants do not currently have to fear any further increases in their rents.
Effects on landlords
The current stability of the reference interest rate is important for landlords . On the one hand, a stable interest rate offers security when calculating rental income. On the other hand, a reduction in the reference interest rate could lead to financial losses, as landlords would be obliged to adjust rents accordingly. This could increase the pressure on landlords to compensate for the loss of income through other measures such as the adjustment of ancillary costs or modernization.
Significance for tenants
This stability is good news for tenants . As long as the reference interest rate remains stable, landlords have no legal leeway to increase rents based on this indicator. This offers tenants financial predictability and protects them from additional burdens due to higher housing costs. However, should the reference interest rate fall in the future, tenants could demand a rent reduction. This option is particularly relevant in times of economic uncertainty, as a reduction in the interest rate could lead to considerable savings in housing costs.
Economic influences and forecasts
The decision to leave the reference interest rate unchanged reflects the current economic situation. Inflation has stabilized in recent months and interest rate trends on the mortgage market are not showing any major fluctuations. Experts, including UBS, assume that the reference interest rate will remain stable in the coming months, unless there are unexpected economic developments.
However, should the economic situation change, this could lead to an adjustment of the interest rate. Falling inflation and lower interest rates on the mortgage market could increase the pressure to lower the reference interest rate. This would have a direct impact on rental prices, as tenants would then have the right to demand a reduction in rents. However, such a development would also affect the profitability of real estate investments and force landlords to adjust their strategies accordingly.
Conclusion – future developments and outlook
The next review of the reference interest rate will take place in December 2024. Until then, it remains to be seen how economic conditions will develop. Tenants and landlords should continue to monitor market and interest rate developments closely in order to be able to react to possible changes at an early stage.
Overall, the stability of the reference interest rate currently offers both tenants and landlords a certain degree of planning security. Nevertheless, it is important to keep an eye on future economic developments, as these could have a direct impact on rental prices and the financing conditions for real estate.
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