Investing in property in Switzerland: the complete guide and the best cities

Is your aim to grow your capital, generate rental income or secure a long-term investment? Whether you’re a Swiss resident, a French resident or a cross-border worker, this comprehensive guide provides you with the key insights you need to choose the best rental investment strategy. Switzerland is brimming with opportunities for property investment: discover an overview of the five cities where the housing market offers the most attractive prospects for investors.

Switzerland stands out as one of the most attractive markets in the world, combining strong returns, low interest rates and an exceptional quality of life! Yes, Swiss property is expensive, but it remains a safe and high-performing long-term investment compared to the many other options available, whether you are Swiss or French.

A safe and profitable long-term investment

The main problem with the stock market is its high volatility. By contrast, Swiss property offers stable growth over the long term: an average of +3.2% between 2000 and 2021. Cyclical price fluctuations remain moderate (between -4% and +16%), making it a secure investment, even in times of economic instability.

For Swiss, French and cross-border investors, the Swiss property market offers the opportunity to build a stable portfolio with a much lower risk of loss than other types of investment. And although all investments carry risks, the Swiss property market strikes an excellent balance between performance and security.

Swiss property: stable returns, outperforming bonds

In concrete terms, Swiss residential property delivered an average annual return of around 3% between 2014 and 2023. Over the same period, Swiss bonds recorded an average annual return of just 0.64%. This high return is largely due to high property rents. And that’s without taking into account the rise in price per square metre, which drives up their value over time.

To assess the profitability of a property investment in Switzerland, a thorough market analysis is essential. To make the right choice, there are a few key indicators you need to be aware of and measure:

• Property prices account for the bulk of a property’s value, and therefore of your capital. Between 2000 and 2021, the value of flats rose by 93%, or more than 3% per year on average. However, each canton, each town and even each neighbourhood shows significant variations in performance and price.
  
• Changes in rent levels will determine the growth of your rental income year on year. In 2024, for example, rents rose by 4.7%, driven by demand outstripping supply.
  
• The gross rental yield measures the profitability of your property relative to its purchase price. In practical terms, a house purchased for CHF 600,000 and rented out for CHF 1,500 per month would, for example, be in line with the Swiss national average (=3% per annum). Some neighbourhoods may even exceed 6%.
  
• Net rental yield measures profitability by taking into account your fixed costs, such as insurance, local taxes, interest and maintenance. To calculate the net yield, you will therefore need to deduct these costs from the rent received. Example: a property worth CHF 600,000 with a rent of CHF 1,500 per month and annual expenses of CHF 4,000 will have a net rental yield of 2.3%, which is in line with the national average.
  
• The vacancy rate reflects how easy it is to let a property. However, properties in Switzerland rarely remain vacant for long, with a vacancy rate of just 1.1% nationwide and 0.6% in major cities. The strong demand in the property market is very reassuring for investors seeking security.

Gross and net rental yields by city

Yields vary significantly depending on location. Generally speaking, they are lower in large cities, whereas outlying cantons offer significantly higher yields:

Alternatives: property funds, ETFs and crowdfunding

Does investing in Swiss property seem out of reach? If so, you might find it more appealing to choose one of the many products that allow you to invest through financial instruments. This solution enables you to gain exposure to the Swiss property market without having to manage a property directly, and without having to invest all your savings!

• Property crowdfunding: with a low entry threshold (starting from just a few thousand francs), this method allows you to invest collectively in a specific project. But be warned: whilst this type of investment can sometimes be highly profitable, it is also riskier than traditional financial products.
• Listed property funds (also known as SIICs): easy to buy and sell (high liquidity), they offer returns of around 3–4%.
• Property ETFs: allow you to invest in a specific market (such as Switzerland or a group of countries) at low cost. Their returns will depend on the financial markets and the performance of the market in question.

This term describes a simple concept: buying a property to let it out. You generate a regular income whilst building up capital that will increase in value over time!

What is buy-to-let and how does it work in Switzerland?

In Switzerland, as elsewhere, the financing of rental property is subject to strict banking regulations: a high deposit (often a minimum of 20–25%), strict checks on borrowing capacity (around one-third of your income), and sometimes a requirement to use a property management agency to handle the rent.

The risks: holidays, service charges, maintenance and tax

The Swiss property market offers great opportunities, but there are also certain constraints you need to be aware of. Here are the main risks to consider before buying:

• Taxation: in Switzerland, rental income is taxed at source, even if you are a French tax resident. But please note that you will also need to make arrangements for your tax returns to the French tax authorities.
• Rental vacancies: there is always a risk of periods without a tenant. Even though the vacancy rate is low (1.1% nationally and 0.6% in major cities), if your property stands empty, this could put you at risk when it comes to paying your monthly mortgage instalments.
• Condominium charges: in a block of flats, you are required to contribute towards shared costs, such as the maintenance of communal areas, the renovation fund and building insurance. These charges will automatically reduce the net return.
• Property maintenance: set aside an annual budget for maintenance (painting, replacement of fixtures and fittings, repairs). On average, we recommend setting aside 1% of the property’s value each year.
  In practical terms, you will therefore pay tax on this property income to the cantonal tax authorities, and you will then need to declare the rent you receive as part of your ‘worldwide income’. Fortunately, thanks to the France–Switzerland tax treaty, you will benefit from a tax credit on tax already paid in Switzerland to avoid punitive double taxation.
• The EUR/CHF exchange rate: a familiar issue for cross-border workers, as you’ll need to convert your Swiss francs into euros to transfer your rental income back to France. The problem is that fluctuations in the exchange rate and conversion fees can affect your returns. To get the best rates and optimise your transfers, it’s worth using a currency exchange service like b-sharpe!

Zurich: a dynamic and international property market

Ranked as the 7th city in the world for quality of life, Zurich boasts an excellent infrastructure. Attracted by its economic stability and its vibrant cultural and sporting scene, 448,664 permanent residents had already made the city their home by the end of 2024, making it Switzerland’s most populous city.

Even today, demand in the residential and commercial property markets continues to rise! Over the past 10 years, the number of households has been steadily increasing, making Switzerland an ideal place to invest or settle.

Unfortunately, the number of vacant homes in Zurich remains extremely low. In 2024, the vacancy rate in the city stood at 0.58%, reflecting a persistent housing shortage. This rate is below the national average, which stood at 1.08% on 1 June 2024.

To meet this growing demand, more than 3,000 new flats were built in Zurich in 2023, marking a five-year high. Among the notable projects, development of the Zurich Innovation Park in Dübendorf began in 2024, with the aim of creating an urban campus for researchers and the general public.

The most popular neighbourhoods in Zurich are:

• Wollishofen;
• Seefeld;
• the old town;
• Enge;
• Weinegg;
• Friesenberg;
• Alt-Wiedikon.

Generally speaking, proximity to the River Limmat and a south-facing location are two factors that increase a property’s value. Even today, it is still possible to expect a return of between 2.5% and 3.5% from rental investment in Zurich, despite an average price per square metre of CHF 16,676 for a flat and CHF 16,336 for a house.

#2 Geneva: high demand and a shortage of properties

As a leading financial hub, Geneva is home to 400 trading firms, 130 multinationals and 22 non-governmental organisations (NGOs). As for its standing as a financial centre, Geneva’s reputation is well established. This undoubtedly explains the constant demand for primary and secondary residences, as well as a steady rise in prices on the Swiss market, driven by ambitious construction projects and a relatively scarce supply of housing.

The city attracts large companies, professional investors and a large number of cross-border workers. It is also one of the most popular destinations for property investment in Switzerland, particularly for well-located studio flats or investment properties close to transport links.

Low crime rates, favourable tax conditions and high salaries are all factors that explain why many French people decide to move to Geneva. Not to mention the short processing time for work permits (5 days) for any qualified EU citizen. Despite this, it is worth noting that the canton still recorded an unemployment rate of 4.8% in January 2025, the second highest in the country.

#3 Bern: a stable market with affordable prices

With a permanent population of around 140,000, this UNESCO World Heritage city has a much lower population density than Zurich and Geneva. Despite high property prices (CHF 9,572 per m² for a flat, CHF 9,219 per m² for a house) and a scarcity of available properties, Bern is attractive due to its status as a hub for international diplomacy. Furthermore, prices are gradually stabilising.

Leading companies and industries (pharmaceuticals, printing and technology) employ a large number of people of foreign origin, who make up a significant proportion of the total population. The city’s medieval centre (Innere Stadt) lies on a peninsula surrounded by the River Aare.

Four districts divide the city centre by colour:

• the red-light district (Rotesquartier);
• the Yellow Quarter (Gerlbesquartier);
• the green district;
• the White Quarter.

Although the historic streets are still too narrow to allow for smooth traffic flow and parking, solutions have been put in place: public transport, commuter trains, cycle paths… There is even a funicular railway to make getting around the city easier.

What’s more, Bern is a city with a varied topography. This means you can invest both in the higher-lying areas (such as the Langgässe or Kirchenfeld districts) and along the banks of the Aare (in areas such as Marzili and Matte). Provided you know how to seize opportunities when they arise, the federal capital and seat of the Swiss government can still offer excellent investment opportunities.

#4 Lausanne: a thriving student city

As the capital of the canton of Vaud, the city of Lausanne boasts a property market with high rental yields, with an average vacancy rate of 1.01%. With property prices 30% higher than the cantonal average, Lausanne ranks among the top 10% of municipalities in the canton in terms of the highest prices.

The high level of competition in the Lausanne property market stems from a dynamic urban area with strong economic and demographic potential. This cultural hub on the shores of Lake Geneva attracts workers, business leaders and students alike through its EPFL-Unil campus. All these factors make rental investment a goldmine, whilst offering a degree of investment security!

#5 Lugano: property opportunities and attractive tax regime

Ranked as the third-largest financial centre after Zurich and Geneva, the largest city in the canton of Ticino has been experiencing strong growth for the past twenty years or so.

In fact, Lugano offers its residents:

• cultural activities (museums, music events such as the Lugano Festival…);
• sports activities (golf, hiking in the Alps, etc.)

But what really makes Lugano stand out is, above all, its peaceful living environment, despite the urban development. With a year-round population of fewer than 64,000, the city is an ideal investment for luxury properties set amidst lush greenery. Monte Brè and Monte San Salvatore spring immediately to mind.

Castagnola, Collina d’Oro, Ruvigliana… Luxury villas are springing up all over the region; so you’d be well advised to keep your eyes peeled for that rare gem to invest in!

Are you a cross-border commuter and interested in investing in Switzerland from one of these towns? If so, you’ll need to understand all the ins and outs of taking out a mortgage in a foreign currency whilst minimising your exchange rate risk.

Yes, the cost of living in Switzerland can affect the profitability of a property investment, but not necessarily in a negative way. In fact, even if purchase costs, service charges or mortgage financing are high initially, these costs are generally offset by strong rental demand and rising rents, particularly in high-growth areas such as French-speaking Switzerland. Beyond gross profitability, the rising cost of living also tends to drive up property values, and therefore the value of your invested capital.

In short: even in a country where the cost of living is high, a sound property development—properly valued, well-financed and in a good location—remains an effective and profitable investment.

A cross-border worker is perfectly entitled to invest in property in Switzerland, even if they do not live there. The difficulty, apart from the high prices, is that it requires a good understanding of local regulations, particularly regarding financing, taxation and property law. Many cantonal banks and financial institutions allow you to open a bank account in Switzerland, with solutions tailored to French nationals. Please note that they often require a higher personal contribution than for Swiss residents.

For example, buying a studio flat or a small investment property near the border (Geneva, Basel, etc.) can be a smart strategy, with the aim of letting it out. Thanks to its proximity to France and strong rental demand, rental returns can remain very attractive, even when purchase and maintenance costs are taken into account.