Swiss Face Rent Cuts as Mortgage Benchmark Drops to 2023 Level

Switzerland’s national benchmark for mortgage costs dropped to the level it had before the global inflation surge, potentially setting up tenants on the country’s high-price housing market for rent cuts.

After increases in line with interest rates, the reference interest rate for rents was now set at 1.5%, down from 1.75%, the Federal Office of Housing said on Monday. Under Swiss law, a benchmark decrease by a quarter percentage-point enables tenants to demand a rent cut by 3%.