"Nasty Rip-Off" Subscriptions Bring Homegate and Immoscout24 into Disrepute

Homegate and Immoscout24, the market-leading real estate portals in Switzerland, have been accused of more exploitative money-making schemes after introducing paid subscriptions for tenants.

The two portals, owned by Swiss Marketplace Group (SMG) have enacted a CHF39.95 ($47) subscription levy on prospective buyers and tenants who want to view listings and contact advertisers via its MieterPlus product.

Tenants without a subscription are unable to contact advertisers for the first seven days. And, to add insult to injury, the MieterPlus package can only be purchased for a minimum of three months at a time.

The result for tenants in Switzerland, where Homegate and Immoscout24 have a combined market share of circa 75%, is that they could theoretically have to pay the equivalent of $141 to be able to contact an advertiser for a listing they like on the first day of their home search—or face the risk of a different, paying tenant getting there first.

Fabian Glorr, a representative for the tenants' association, told Swiss consumer magazine K-Tipp:

"The market leader is taking advantage of the plight of those looking for a home."

K-Tipp went on to show that only a fraction of affordable properties (less than 4,000 francs per month) fall into the MieterPlus category, thereby limiting the stock that is available relative to the subscription cost.

One tenant vented their frustration, branding the subscription "a really nasty rip-off".

In Zurich, K-Tipp found, only 23 out of 863 advertisements fall into this category. In Basel, the landlord can only be contacted early in 13 out of 969 apartment advertisements, and in St. Gallen, only 2 out of 414.

Finally, K-Tipp asserted that "The Swiss Marketplace Group massively increased prices for landlords in 2024: in individual cases, advertising on Homegate and Immoscout24 now costs up to ten times as much as last year."

SMG has already faced the ire of the Swiss Property Federation this year after it had its advertising and sponsorship agreement terminated after continued pushback from disgruntled stakeholders.

SMG is a dominant force in Switzerland's real estate marketplace industry, and it is difficult for brokers to close deals without interacting with SMG products.

A planned price hike in April 2024 was deemed dubious enough to have the the Swiss price supervisor called in to examine SMG's pricing strategies.