At a time when real estate prices are rising in Switzerland, investing in real estate represents an opportunity. But to maximize your chances of getting a return on your investment, it’s important to choose the right location for your property.
Our real estate agency has compiled a list of the top 5 Swiss cities in which to invest in 2022.
A secure investment in Zurich
Quite simply, Zurich is the 7th city in the world with the best quality of life. It has everything it takes to be a safe place to invest in real estate:
- Dynamic and stable economy;
- A cultural and sports Mecca;
- One of Switzerland’s most populous cities.
Demand for housing in this Swiss city is very high, thanks in particular to its growing population. However, as the local market is very tight, property prices in Zurich are among the most expensive in the country, and the number of properties for sale is quite limited. This can be a challenge for investors. What is certain, however, is that a rental investment in Zurich is a profitable one.
Zurich’s most popular neighborhoods include :
- Seefeld ;
- Wollishofen;
- Friesenberg,
- Old Town;
- And all the other districts near the Limmat river.
Strong demand for housing in Geneva
Like Zurich, Geneva is one of Switzerland’s most dynamic cities. As a result, property prices in Geneva are among the highest in the country. In fact, Geneva is ranked as the 8th best city in the world in which to live.
As the country’s financial hub, Geneva receives a large number of housing requests every year. In addition to the Swiss who come here to work, professionals from all over the world are looking for job opportunities in this city.
So investing in real estate in Geneva can only be a good thing. That said, real estate investors in Geneva face the same challenge as those interested in the Zurich market. On average, you can expect to pay CHF 14,000 per m² for an apartment in Cologny, and CHF 16,000 for an apartment in Champel.
Building on Berne’s quality of life
The Swiss capital is one of the best Swiss cities for rental investment. Admittedly, it does not enjoy the same population density as Geneva and Zurich. Nevertheless, Berne’s high quality of life means that there is a strong demand for housing.
The city’s highly-developed economic sector attracts many foreign workers who settle here. In fact, the latest figures show that 22% of Berne’s population is made up of people of foreign origin.
Since the number of buyers is far greater than the number of properties for sale in Berne, the price per square meter is quite high. On August1, 2022, the square meter of an apartment in the capital will cost CHF 8,581, and CHF 9,007 for a house. As for rent, expect to pay an average of CHF 302/m² for an apartment and CHF 210/m² for a house.
For your rental investment in Berne, it may be worth looking at the city’s older neighborhoods to buy at a lower price. That said, whichever district you choose, Berne offers great rental investment opportunities.
High rental yields in Lausanne
In the capital of the canton of Vaud, rental yields are particularly high. Lausanne is home to a large number of companies and is one of Switzerland’s best-known student cities in the world. Two reliable indicators of a city’s rental potential.
Lausanne has always had a high rental yield, in line with other communes in French-speaking Switzerland. In 2021, the city’s yield was 2.5%, compared with 2.4% in Zurich and 2.8% in Geneva.
A profitable investment in Basel
Basel, the city in northwestern Switzerland, richly deserves its place in the ranking of cities where rental investment is most advantageous. With an average rental yield of 2.8%, among the best in the country, investing in property in Basel represents a golden opportunity for investors.
Three Basel districts in particular stand out in the rental market: those with postal codes 4001, 4054 and 4056.
To support you in your project, our Geneva real estate agency also gives you all the advice you need to make a success of your rental investment in Switzerland.
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