Subletting is a hot topic when it comes to the housing shortage. And yet, this movement is gaining ground, whether it concerns residential properties or office space.
Aided by data from Wuest Partner, it should be remembered that the company considered information from the main portals, omitting that from Airbnb and social network posts.
The first observation is clear, according to Corinne Dubois, an economist with Wuest Partner: the number of sublets is on the rise. Should we really be surprised?
The pandemic had silenced the most skeptical, with a slight decline, but the trend is now back on the rise, with the worsening of the trend in its wake.
Key fact: Between the third quarter of 2022 and the third quarter of 2024, the number of sublet dwellings jumped by 42%, while the number of rental dwellings fell by almost 18% over the same period.
The economist adds that large urban centers are particularly affected by subletting. The supply of housing is very low, and tenants are reluctant to vacate their property in the event of a temporary absence. It’s worth noting that shared accommodation has also made great strides in this category.
Subletting up sharply in major centers
Representation of the share of subletting ads as a percentage of all ads for rental accommodation
Source Wüest Partner
What about subletting in Geneva?
Let’s talk about Zurich first. Yes, subletting has quadrupled in the space of ten years, with an increase of more than 14% in the third quarter of 2024 for all rental property advertisements.
In this city, rents are very high and the shortage is more marked. The vacancy rate is just 0.07%, whereas the market is considered to be balanced when the vacancy rate is close to 1.5%.
This makes subletting easier.
In addition, business travellers and students are attracted by its economic centre and the reputation of its universities when looking for short and medium-term rentals.
However, Geneva and Lausanne are not experiencing the same level of interest in subletting. The trend is much more stable, and has even fallen below the 2% mark for all rental property advertisements.
This could be explained by a longer occupancy period or the use of other means of subletting.
Surge in subletting in Zurich
Share of sublet ads as a percentage of all rental ads
Source Wüest Partner
Wüest Partner also looked at rents and found that, in large cities and their conurbations, sublet properties often command much lower rents than other listings.
This difference is explained by the fact that sublease prices are generally based on old leases, whereas rents in traditional advertisements reflect current market rates, which are often higher.
These observations confirm that subletting is an advantageous option for housing at a lower cost.
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