Authored by the expert who managed and guided the team behind the Switzerland Property Pack
Yes, the analysis of Zurich's property market is included in our pack
Yes, foreigners can legally rent out property in Zurich, but Switzerland's Lex Koller law creates strict barriers for non-residents wanting to buy residential property purely as an investment.
Zurich's rental market is exceptionally tight, with a vacancy rate of just 0.1% in the city, which means long-term tenants are relatively easy to find once you secure a property.
We constantly update this blog post to reflect the latest regulations, market data, and practical insights for foreign investors considering Zurich.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Zurich.
Insights
- Zurich's vacancy rate of 0.1% is roughly ten times tighter than the Swiss national average of 1.0%, meaning landlords here face almost zero downtime between tenants.
- Gross rental yields in Zurich typically range from 2.0% to 3.0%, which is low by global standards but reflects the city's extreme price-to-rent compression.
- Non-resident foreigners generally cannot buy Zurich residential property purely for investment under Lex Koller, making legal status the first hurdle, not profitability.
- Short-term rentals in Zurich average around 59% occupancy with nightly rates near CHF 150, but operating costs and compliance requirements eat into margins significantly.
- A Swiss IBAN is practically essential for collecting rent in Zurich because tenants, property managers, and utility companies all default to Swiss bank transfers.
- Monthly rents for a 2-bedroom apartment in Zurich typically range from CHF 3,300 to CHF 4,200, or roughly USD 3,700 to USD 4,700 at current exchange rates.
- Neighborhoods like Altstetten and Oerlikon offer better yields than lakefront areas because entry prices are lower while rental demand remains strong due to excellent transit links.
- Swiss tenants can legally challenge rent increases they consider abusive, so landlords need documented justification tied to cost increases or the reference interest rate.
- Security deposits in Zurich are capped at three months' rent and must be held in a tenant-named bank account, not in the landlord's personal account.
Can I legally rent out a property in Zurich as a foreigner right now?
Can a foreigner own-and-rent a residential property in Zurich in 2026?
As of early 2026, foreigners can legally rent out property in Zurich if they legally own the home in the first place, but Switzerland's Lex Koller law typically blocks non-resident foreigners from buying residential property purely as an investment.
The main ownership structure available to foreigners is direct personal ownership, but this requires either Swiss residency (certain permit types) or falling into a narrow exception category under Lex Koller.
The single most common restriction is that "persons abroad" (non-residents without qualifying permits) cannot purchase residential property in Zurich city for investment purposes, which effectively closes the door for most foreign buy-to-let investors.
If you're not a local, you might want to read our guide to foreign property ownership in Zurich.
Do I need residency to rent out in Zurich right now?
You do not need to live in Zurich to rent out a property you legally own, and many foreign owners manage their Zurich rentals remotely through professional property managers.
However, you will need to be tax-registered in Switzerland because Swiss-sourced rental income is taxable in Switzerland, and Zurich authorities expect proper reporting and filing from landlords.
While not strictly required by law, a Swiss bank account (or at least a Swiss IBAN) is practically essential because tenants, property managers, and bill payments all default to Swiss domestic transfers.
Remote management is entirely feasible in Zurich, but most non-resident owners hire a local property manager to handle repairs, tenant issues, and administrative duties like the city's third-party reporting requirements for tenant moves.
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What rental strategy makes the most money in Zurich in 2026?
Is long-term renting more profitable than short-term in Zurich in 2026?
As of early 2026, long-term renting in Zurich is typically the lower-stress profit option with stable returns, while short-term renting can generate higher gross revenue but comes with significantly more regulation, operating costs, and hands-on management.
A well-managed long-term rental in Zurich might generate around CHF 36,000 to CHF 45,000 per year (USD 40,000 to USD 50,000, or EUR 37,000 to EUR 46,000) for a typical 2-bedroom apartment, whereas a well-managed short-term rental in a similar unit could gross CHF 50,000 to CHF 65,000 annually but with 25% to 35% eaten by cleaning, platform fees, and higher turnover costs.
Short-term renting financially favors properties in central, transit-connected areas like Kreis 1 (Old Town), Seefeld, or near Zurich Hauptbahnhof, where business travelers and tourists are willing to pay premium nightly rates for convenience.
What's the average gross rental yield in Zurich in 2026?
As of early 2026, the average gross rental yield for residential properties in Zurich sits between 2.0% and 3.0%, which reflects the city's extremely high property prices relative to rental income.
The realistic range that covers most Zurich residential properties spans from about 1.8% in premium lakefront and central areas to around 3.5% in well-connected outer districts with lower entry prices.
Studios and small apartments typically achieve the highest gross rental yields in Zurich because their lower purchase prices combined with strong demand from students, young professionals, and expats create favorable rent-to-price ratios.
By the way, we have much more granular data about rental yields in our property pack about Zurich.
What's the realistic net rental yield after costs in Zurich in 2026?
As of early 2026, the average net rental yield after operating costs for Zurich residential properties typically falls between 1.2% and 2.0%, before accounting for mortgage interest and personal income taxes.
The realistic range most landlords actually experience in Zurich spans from around 0.8% in expensive central districts to approximately 2.5% in more affordable outer neighborhoods with strong rental demand.
The three main cost categories that reduce gross yield to net yield in Zurich are the substantial condo/building charges (Nebenkosten) that Swiss apartments carry, the mandatory building insurance and maintenance reserves that Swiss property management culture expects, and the income tax on rental earnings that Switzerland levies even on non-resident owners.
You might want to check our latest analysis about gross and net rental yields in Zurich.
What monthly rent can I get in Zurich in 2026?
As of early 2026, typical monthly rents in Zurich for well-located, standard-quality apartments are approximately CHF 2,000 to CHF 2,400 (USD 2,200 to USD 2,700, EUR 2,000 to EUR 2,500) for a studio, CHF 2,700 to CHF 3,200 (USD 3,000 to USD 3,600, EUR 2,800 to EUR 3,300) for a 1-bedroom, and CHF 3,500 to CHF 4,200 (USD 3,900 to USD 4,700, EUR 3,600 to EUR 4,300) for a 2-bedroom.
A realistic entry-level monthly rent for a decent studio in Zurich starts around CHF 1,800 to CHF 2,100 (USD 2,000 to USD 2,350, EUR 1,850 to EUR 2,150) in outer districts with good tram connections.
A typical mid-range 1-bedroom apartment in Zurich commands CHF 2,500 to CHF 3,000 per month (USD 2,800 to USD 3,350, EUR 2,550 to EUR 3,100), depending on district and proximity to public transit.
A typical mid-to-high range 2-bedroom apartment in Zurich rents for CHF 3,300 to CHF 4,500 per month (USD 3,700 to USD 5,000, EUR 3,400 to EUR 4,600), with lakefront and central locations at the upper end.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Zurich.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Switzerland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Zurich in 2026?
What's the total "all-in" monthly cost to hold a rental in Zurich in 2026?
As of early 2026, the total "all-in" monthly cost to hold and maintain a typical rental apartment in Zurich ranges from CHF 500 to CHF 1,200 (USD 560 to USD 1,350, EUR 510 to EUR 1,230), excluding mortgage payments and income taxes.
A realistic low-to-high monthly cost range that covers most standard Zurich rental properties spans from about CHF 400 for a well-maintained studio in a modern building to CHF 1,500 or more for a larger apartment in an older building requiring more maintenance reserves.
The single largest contributor to monthly holding costs in Zurich is typically the condo/building charges (Nebenkosten), which cover shared building maintenance, heating, water, and building insurance and commonly run CHF 300 to CHF 700 per month depending on apartment size and building age.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Zurich.
What's the typical vacancy rate in Zurich in 2026?
As of early 2026, the typical vacancy rate for rental properties in Zurich city is approximately 0.1%, which is extraordinarily low by any international standard and means nearly every available apartment finds a tenant almost immediately.
A landlord in Zurich should realistically budget for 0 to 1 month of vacancy per year because the extreme scarcity of rental housing means well-priced, decent-condition apartments rarely sit empty for long.
The main factor causing vacancy rates to vary between Zurich neighborhoods is transit accessibility, with areas near tram stops, S-Bahn stations, and major employment hubs experiencing essentially zero vacancy while more isolated pockets may see slightly longer tenant search times.
The highest tenant turnover in Zurich typically occurs around the traditional Swiss moving dates of April 1 and October 1, when most leases are structured to end, creating a brief window of increased activity in the rental market.
We have a whole part covering the best rental strategies in our pack about buying a property in Zurich.
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Where do rentals perform best in Zurich in 2026?
Which neighborhoods have the highest long-term demand in Zurich in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Zurich are Kreis 1 (City/Lindenhof), Seefeld in Kreis 8, and Oerlikon in Kreis 11, each offering a combination of excellent transit, amenities, and strong tenant interest.
Families seeking long-term rentals in Zurich gravitate toward Höngg and Wipkingen in Kreis 10, Hirslanden and Witikon in Kreis 7, and Wollishofen in Kreis 2, where good schools, parks, and quieter residential streets create family-friendly environments.
Students looking for long-term rentals in Zurich concentrate around Oberstrass and Unterstrass in Kreis 6, the Hochschulen area in Kreis 1 near ETH and University of Zurich, and Oerlikon in Kreis 11 for its affordability and quick rail connections to campus.
Expats and international professionals seeking long-term rentals in Zurich favor Seefeld and Weinegg in Kreis 8, Enge in Kreis 2, and Zurich West in Kreis 5, where English-friendly services, modern apartments, and international communities make settling in easier.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Zurich.
Which neighborhoods have the best yield in Zurich in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Zurich are Altstetten and Albisrieden in Kreis 9, Oerlikon and Seebach in Kreis 11, and Schwamendingen in Kreis 12, where lower property prices meet strong rental demand.
The estimated gross rental yield range for these top-yielding Zurich neighborhoods falls between 2.8% and 3.5%, compared to 1.8% to 2.2% in premium lakefront areas like Seefeld or Enge.
The main characteristic that allows these neighborhoods to achieve higher yields is their proximity to major S-Bahn stations and employment centers (especially Zurich Altstetten and Oerlikon stations) combined with significantly lower purchase prices than prestige districts, creating better rent-to-price ratios.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Zurich.
Where do tenants pay the highest rents in Zurich in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Zurich are Kreis 1 (Old Town/City), Seefeld in Kreis 8, and the Zurichberg area including Fluntern and Hottingen in Kreis 7.
A typical monthly rent for a standard 2-bedroom apartment in these premium Zurich neighborhoods ranges from CHF 4,500 to CHF 6,500 (USD 5,000 to USD 7,300, EUR 4,600 to EUR 6,700), with luxury properties commanding even higher figures.
The main characteristic that makes these neighborhoods command Zurich's highest rents is their combination of lake and mountain views, historic architecture, extremely limited housing supply, and walkability to both the financial district and high-end retail along Bahnhofstrasse.
The typical tenant profile in these highest-rent Zurich neighborhoods includes senior executives at multinational corporations, partners at financial institutions and law firms, successful entrepreneurs, and wealthy families seeking proximity to international schools and the cultural offerings of central Zurich.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Switzerland. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Zurich in 2026?
What features increase rent the most in Zurich in 2026?
As of early 2026, the three property features that increase monthly rent the most in Zurich are direct proximity to a tram or S-Bahn stop (under 5 minutes walk), a private balcony or terrace with any outdoor space, and a modern, recently renovated kitchen with quality appliances.
The single most valuable feature in Zurich is transit proximity, which can add a rent premium of 10% to 15% compared to otherwise identical apartments that require a longer walk or bus connection to reach rail service.
One commonly overrated feature that Zurich landlords invest in but tenants do not pay much extra for is high-end designer finishes or luxury kitchen brands, because Swiss tenants prioritize functionality, cleanliness, and energy efficiency over showroom aesthetics.
One affordable upgrade that provides strong return on investment for Zurich landlords is installing a modern, efficient washing machine and dryer in-unit (or ensuring excellent shared laundry facilities), because Swiss tenants place high value on laundry convenience and will pay modestly more for it.
Do furnished rentals rent faster in Zurich in 2026?
As of early 2026, furnished apartments in Zurich typically rent 1 to 3 weeks faster than unfurnished ones, particularly when targeting expats, corporate relocations, or students who need move-in-ready accommodation.
Furnished apartments in Zurich command a rent premium of approximately 15% to 30% over unfurnished equivalents, though this premium comes with higher wear-and-tear costs and the expectation of more frequent tenant turnover.
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How regulated is long-term renting in Zurich right now?
Can I freely set rent prices in Zurich right now?
Landlords in Zurich can generally set the initial rent freely when a new tenant moves in, but Swiss tenancy law allows tenants to challenge rents they consider abusive within 30 days of receiving the lease, which creates some practical constraint on pricing far above market norms.
Rent increases during an existing tenancy in Zurich are regulated and must be justified by specific factors such as cost increases, inflation adjustments, or changes to the Swiss reference interest rate, and landlords must provide proper written notice with documented reasoning.
What's the standard lease length in Zurich right now?
The standard and most common lease structure in Zurich is an open-ended (indefinite) lease with notice periods, typically allowing either party to terminate with three months' notice to coincide with the traditional Swiss moving dates of April 1 or October 1.
The maximum security deposit a landlord can legally require in Zurich is three months' rent, which translates to approximately CHF 6,000 to CHF 12,000 (USD 6,700 to USD 13,400, EUR 6,150 to EUR 12,300) for a typical apartment, and this deposit must be held in a tenant-named bank account.
Swiss law requires landlords to return the security deposit promptly after the tenancy ends and the property is inspected, with deductions only permitted for documented damages beyond normal wear and tenant agreement, and disputes can be taken to the local tenancy arbitration authority.
We made this infographic to show you how property prices in Switzerland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Zurich in 2026?
Is Airbnb legal in Zurich right now?
Airbnb-style short-term rentals are legal in Zurich, but hosts must comply with specific obligations including maintaining a guest register, reporting guest information to authorities, and potentially collecting and remitting local tourism taxes.
Zurich does not require a single universal "Airbnb license," but hosts must register with the city for guest control purposes, ensure their building's condo/HOA rules permit short-term letting, and verify their use classification does not trigger commercial accommodation requirements.
Zurich does not impose a simple blanket citywide night limit like some European cities, but hosts should verify specific building rules and understand that intensive short-term letting may be reclassified as commercial use requiring different permits.
The most common consequences for operating a non-compliant short-term rental in Zurich include fines for failure to maintain proper guest records, enforcement action from building management for violating condo rules, and potential tax penalties for unreported rental income.
What's the average short-term occupancy in Zurich in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Zurich is approximately 59%, meaning a typical listing is booked for roughly 215 nights per year.
The realistic occupancy range that most Zurich short-term rentals experience spans from about 45% for average listings in less central locations to 75% or higher for well-reviewed properties in prime areas near transit and attractions.
The months with the highest occupancy rates for Zurich short-term rentals are typically June through September (summer tourism) and December (holiday markets and events), when leisure travel peaks and business conferences overlap.
The lowest occupancy months for Zurich short-term rentals are typically January through March (post-holiday lull) and November (before holiday season), when both tourism and business travel slow down.
Finally, please note that you can find much more granular data about this topic in our property pack about Zurich.
What's the average nightly rate in Zurich in 2026?
As of early 2026, the average nightly rate for short-term rentals in Zurich is approximately CHF 150 (USD 170, EUR 155), though this varies significantly by location, property size, and quality.
A realistic low-to-high nightly rate range that covers most Zurich short-term rental listings spans from about CHF 90 to CHF 250 (USD 100 to USD 280, EUR 90 to EUR 260), with budget options in outer districts at the low end and central, well-designed apartments at the high end.
The typical nightly rate difference between peak season and off-season in Zurich is approximately CHF 30 to CHF 60 (USD 35 to USD 70, EUR 30 to EUR 60), with savvy hosts adjusting pricing dynamically to capture summer and December demand while maintaining bookings during slower months.
Is short-term rental supply saturated in Zurich in 2026?
As of early 2026, the short-term rental market in Zurich is competitive but not oversaturated, with approximately 6,000 active listings creating meaningful competition that rewards differentiation through location, design, and professional operations.
The current trend in active short-term rental listings in Zurich is relatively stable, with modest growth in outer districts being offset by some consolidation and professionalization in central areas.
The most oversaturated neighborhoods for short-term rentals in Zurich are Kreis 1 (Old Town) and central parts of Kreis 4 near Langstrasse, where high listing density means new entrants must compete heavily on price, reviews, and presentation.
Neighborhoods in Zurich that still have room for new short-term rental supply include Oerlikon in Kreis 11, Altstetten in Kreis 9, and areas near Zurich Airport, where business traveler demand is underserved and competition is less intense than in the tourist-heavy center.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Zurich, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Swiss Federal Office of Justice (FOJ) | The Swiss government office that sets foreign property ownership rules. | We used it to explain what foreigners can and cannot legally buy under Lex Koller. We treated this as the rulebook for all ownership-related guidance. |
| Canton of Zurich Lex Koller Page | Zurich's official guidance on how federal rules apply locally. | We used it to confirm Zurich-specific permit requirements. We made sure our advice reflects local enforcement, not just Swiss-wide rules. |
| City of Zurich Vacancy Release (2025) | The city's official, dated publication of Zurich's vacancy rate. | We used it to quantify how extreme Zurich's rental undersupply is. We built our vacancy budget assumptions around this data. |
| Swiss Federal Statistical Office (FSO) Housing Data | Switzerland's official statistics agency for housing supply. | We used it for national vacancy benchmarks and trends. We cross-checked it with Zurich-specific data to avoid overgeneralizing. |
| City of Zurich Host Guidance | The city's official page for anyone hosting short-term guests. | We used it to explain Airbnb compliance requirements. We built our short-term rental operational guidance around these rules. |
| Swiss Federal Office for Housing (BWO) | The federal authority specifically covering short-term letting policy. | We used it to frame how Switzerland regulates platform-based rentals. We ensured our Zurich advice fits the broader Swiss context. |
| AirDNA Zurich Market Data | A widely used, method-based dataset for Airbnb market metrics. | We used it for Zurich short-term occupancy and daily rate estimates. We treated it as a market indicator and validated against official tourism stats. |
| FSO Tourism Accommodation Statistics | The official dataset for hotel arrivals and visitor demand. | We used it to validate that Zurich has deep, year-round visitor demand. We avoided relying on platform data alone for demand assessment. |
| Swiss Confederation Portal (ch.ch) | An official Swiss portal designed to explain rules simply. | We used it to keep lease and tenancy basics accurate. We validated standard practice views for non-professional landlords. |
| Swiss National Bank (SNB) | Switzerland's central bank for market rate and currency context. | We used it to ground the early 2026 financing backdrop. We used it only for macro context, not rent-level estimates. |
We have made this infographic to give you a quick and clear snapshot of the property market in Switzerland. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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