The reference interest rate for residential rents in Switzerland will remain unchanged at 1.75 percent, according to the Federal Office for Housing (BWO).

The decision was made after evaluating the average interest rate for domestic mortgage loans, which currently stands at 1.63 percent. This falls short of the threshold required for a reduction.

Last year, the reference interest rate increased from 1.25 to 1.75 percent, resulting in some landlords raising rents by more than 10 percent in certain cases.

The BWO will conduct its next assessment of the mortgage reference interest rate on March 3, 2025.