2023-06-10 03:51:44
Swiss Life will increase the rents of 21,000 housing units, more than half of the 38,000 in its possession. The majority of revenue should go to customers in the insurance sector, comments the head of the insurance group Patrick Frost Saturday in the press.
Less than 10% of rents generate profits, continues Patrick Frost in an interview with the German-speaking newspaper Schweiz am Wochenende.
While rents have been falling for nearly 15 years, the mechanism is now working the other way in the face of higher interest rates and inflation, says the boss of Swiss Life, one of the largest landlords. from the country.
The benchmark mortgage rate rose for the very first time in early June, laying the groundwork for rising rents in Switzerland on a broad front. Most major landlords have increased rents, as shown by a survey conducted in mid-April by the AWP news agency among a dozen major landlords. Swiss Life was one of them.
>> Read also: Benchmark interest rate for leases rises, rents might follow
“Build more”
Patrick Frost also predicts a further decline in construction activity and a consequent scarcity of housing supply. In his eyes, the solution is relatively simple: “build more!”.
But the oppositions slow down the construction of new housing, he assures, calling on the politicians to “increase the obstacles to possible opposition”. “Local residents who complain regarding the noise of the works might be compensated”, gives the boss of Swiss Life as an example. Currently, 90% of objections to regulatory constructions are abusive, he points out.
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