On average, an apartment in the canton of Zug is only advertised for six days. This is due to its high attractiveness of the area, as was demonstrated at an information event organised by the Zug Cantonal Bank.
The vacancy rate for apartments in the canton of Zug is one of the lowest in Switzerland, at just 0.42%. This is an “extraordinary seal of quality and approval” for the canton, as Hanspeter Rhyner, CEO of the Zug Cantonal Bank, explained. But it also leads to the great and well-known challenge: finding an apartment. On average, an apartment in Zug is only advertised for six days. If you want to live here, you have to be quick.
With these words, Hanspeter Rhyner introduced the “Trends in the Real Estate Market” event, which is organized annually by the Zug Cantonal Bank and which took place in the Theatre Casino in Zug last Thursday. The invited speakers were Patrick Schnorf, Partner and Head of Research at Wüest Partner, and Karin Frick, Principal Researcher at the Gottlieb Duttweiler Institute (GDI).
Peter Bucher, Head of Real Estate Investors at the Cantonal Bank, said: “With our event, we offer real estate investors an optimal platform for personal discussions. In addition, our guests today will hear current and interesting information, with two presentations regarding the real estate market and the results of a recent comprehensive neighbourhood study.”
Zug's housing market remains stable
Patrick Schnorf classified the Zug housing market as robust; but vacancies are still very low. According to the expert, this is due, among other things, to the high attractiveness and population growth of the canton. The large level of excess demand not only affects rental apartments, but also home ownership, and, as a result, the lack of objects available for sale is driving up the price.
Around 150 guests were present
Hanspeter Rhyner, the CEO of the Zug Cantonal Bank, introduced the event
Patrick Schnorf believes the real estate market in Zug is robust.
Karin Frick explained the effects good neighbours can have on well-being.
Karin Frick and Patrick Schnorf exchanged ideas in a discussion session moderated by Peter Bucher. Photos: zvg
Patrick Schnorf also made a forecast: the housing situation will remain tense in 2024. This is a problem for people looking for an apartment, but is an attractive situation for owners. Both asking and existing rents are likely to rise in the coming year, with the rents being offered expected to rise even more sharply than the Swiss average.
What does 'neighbourhood' mean?
Karin Frick focused her talk on a topic that probably affects everyone: the neighbourhood. As part of her research, she has evaluated how satisfied the Swiss are in their neighbourhood, and what their needs are. The tenor is clear: most of those surveyed have a relaxed, relatively distant relationship with the people who live next door. “What’s worth mentioning here is that even if they only know their neighbours briefly, the participants trust them,” says the economist.
She described the neighbourhood as an important factor for well-being - especially in the long term. As a researcher, she not only looks at the current situation, but also into the future. The new dynamics in the labour market and the fact that home office is being used more and more often mean that the home and the associated social environment are likely to become more important to people.
In a subsequent discussion with the experts and with Peter Bucher, the head of real estate investors at the ZKB, it became clear that various hurdles are to be expected in the real estate market. Although he acknowledged the great importance of good neighbours, Patrick Schnorf also emphasized that the housing shortage in Zug is probably a more pressing issue. Karin Frick and Patrick Schnorf both agreed that the densification of living space will definitely create challenges, for both the construction industry and society.