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
What is happening in Zurich’s real estate market? Are prices going up or down? Is Zurich still a prime location for international investors? How are Switzerland’s policies impacting real estate regulations and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from the city center to the outskirts and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Zurich real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Rental demand in Zurich's tech districts will boost yields for investors
The demand for rental properties in Zurich's tech districts is set to lead to higher yields for investors due to several key factors. First, rental prices in these areas have surged, with a notable 6.3% increase in 2024, and some areas experiencing double-digit growth. This reflects the intense demand for housing in tech districts, which is a direct result of the booming tech industry in Zurich.
Additionally, the vacancy rate in Zurich's tech districts was extremely low at 0.58% in 2023, indicating a chronic housing shortage. This scarcity of available rental properties naturally drives up rental prices, benefiting investors who own properties in these high-demand areas. Furthermore, the influx of tech professionals, driven by Zurich's thriving economy, has added thousands of new residents, further increasing the demand for rental housing.
Moreover, the high salaries in the tech industry allow young professionals to afford higher rental budgets, which in turn drives up demand for quality rental properties. This trend is expected to continue as more young professionals seek the flexibility and convenience of urban living. Real estate market analyses also predict that property values in tech districts will continue to grow due to the strong demand for housing and office space, leading to higher yields for investors.
Sources: Swiss Life Asset Managers, Freddie Mac
2) Mid-range property prices in Zurich will steadily rise as buyers focus on value for money
The demand for mid-range properties in Zurich has been steadily increasing, leading to a rise in prices. This trend is largely due to the city's low vacancy rates, which reached a new low of 0.06% in Zurich and 0.19% in Winterthur back in 2023. Such low vacancy rates indicate a high demand for housing, as almost all new units are quickly occupied.
In 2023 and 2024, the median price per square meter for apartments in Zurich was CHF 16,666, with a significant portion of properties priced between CHF 13,967 and CHF 19,750 per square meter. This price range highlights the strong market for mid-range properties, which are seen as offering good value for money. Buyers are prioritizing these properties, contributing to the steady price increase.
Additionally, Zurich's housing shortage has been a persistent issue, with a need for around 7,600 new apartments per year until 2040 to meet household growth. This limited supply, coupled with the city's strong economic performance and low unemployment rates, continues to drive up demand and prices for available properties.
Sources: Neho, Immo Invest, Bluewin
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.
3) Zurich’s rental yields will rise slightly as demand for rental properties stays strong
Rental yields in Zurich are on the rise as the demand for rental properties remains strong.
In 2023, Zurich saw a 13% jump in asking rents, and by early 2024, rents across Switzerland climbed by 6.3% year-over-year. Zurich, in particular, experienced double-digit rental growth, highlighting the city's robust rental market. This surge is largely driven by an influx of new residents, including expatriates, who are flocking to the city.
Switzerland welcomed about 98,900 new residents in 2023, and by early 2024, another 21,500 immigrants had arrived. This steady stream of newcomers is putting pressure on Zurich's rental market, as more people compete for limited housing options.
Vacancy rates in Zurich have been on a downward trend, dropping from 1.15% to 1.08% in 2024. This decline indicates a structural supply shortage, allowing landlords to command higher rents due to fewer available properties. High mortgage interest rates and limited housing availability have also led many potential buyers to delay purchasing homes, further boosting rental demand.
With fewer properties on the market, landlords are in a strong position to increase rents. The combination of high demand and low supply is creating a competitive environment for renters, making Zurich an attractive city for property investors looking to capitalize on rental income.
Sources: Swiss Info, PwC Switzerland
4) Rents in Zurich's tech hubs will gradually rise due to increased demand for rental properties
The demand for rental properties in Zurich's tech hubs is on the rise as more skilled professionals flock to the city.
In 2025, Switzerland kept its work visa quotas steady, allowing up to 8,500 permits for non-EU nationals, many of whom are tech workers. This influx is pushing up the need for rental homes.
Zurich is turning into a global innovation hub, with tech giants like Google expanding their footprint. Google's European headquarters in Zurich employs over 5,000 people, which significantly boosts the demand for housing. More tech companies mean more professionals, and that means more rentals are needed.
There's also a shortage of rental properties in tech-heavy areas. Reports show a severe lack, especially in places like Zurich-West, where luxury developments are common. This scarcity naturally leads to higher rental prices, as seen in 2024 when rents jumped by over 6%.
Tech employees love living close to work, which further drives up demand in these hubs. The high number of inquiries from tech professionals looking for rentals in these areas is proof. Plus, the growth of coworking spaces and tech incubators in Zurich shows a thriving tech scene, attracting more people who need nearby housing.
Real estate market analyses predict continued rental growth in tech areas due to high demand and limited supply. A study by the city of Zurich shows that rents have risen by 40% over 20 years, with significant housing renewal in the city center. Real estate agents report intense competition for housing in these areas.
Sources: Swissinfo, TechGig, Swissinfo
5) Zurich city center rents will rise modestly as demand stays high despite new developments
In Zurich, rents have been climbing steadily, with a notable increase in recent years.
By 2024, the median asking rent in Zurich hit CHF 410 per square meter, marking a 17.1% rise from the previous year. This trend highlights the city's ongoing rental price surge, making it a hot topic for potential property buyers.
Switzerland's rental market is tight, with the vacancy rate dropping to 1.6% in 2023 from 2.1% the previous year. Even with new developments, the supply of rental units can't keep up with demand, especially in Zurich.
Zurich's appeal to immigrants, thanks to its bustling economic centers, is a key factor. The city attracts a steady stream of professionals and expatriates, which in turn drives up the demand for housing and keeps rental prices high.
Despite new buildings popping up, the demand for rental properties in Zurich's city center remains strong. This means rents are likely to see a modest increase as more people flock to the area.
For those considering buying property in Zurich, understanding these dynamics is crucial. The city's vibrant economy and international allure make it a competitive market, where rental prices are expected to continue rising.
Sources: Global Property Guide, Swiss Marketplace Group
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6) Foreign buyers will increasingly seek properties near international schools in Zurich
The demand from foreign buyers for properties near international schools in Zurich is likely to increase due to several key factors.
First, the number of students at international schools in Zurich has grown significantly. For example, Zurich International School now has over 1,400 students, more than double the number from five years ago. This indicates a rising need for housing close to these schools.
Additionally, Zurich is home to a large expatriate community, with 29 percent of the region's population being expats. The influx of expatriates is expected to continue, with thousands of new residents arriving in recent years. Many of these expatriates prefer living near international schools, which boosts demand for nearby properties.
Moreover, property prices in Zurich are increasing, especially in areas near international schools. This trend suggests a strong demand for residential spaces in these locations. Rental prices have also surged, making renting an attractive option for expatriates, further fueling the demand for properties near international schools.
Sources: Swiss Info, I Am Expat
7) New short-term rental rules will affect the profitability of Airbnb-style investments in Zurich
In Zurich, new regulations now limit short-term rentals to just 10% of apartments in residential zones.
For property owners, this means a big shift. Most will need to focus on long-term rentals, which usually bring in less money than short-term options. This change is a game-changer for those who relied on platforms like Airbnb for higher returns.
On top of that, Zurich has added more hoops to jump through. Property owners must register their short-term rentals with the city, which means more paperwork and possible extra costs. This is similar to what's happening in places like France, where tax breaks are shrinking and rental days are limited.
The impact is already visible. As of September 2024, Zurich had only 1,775 active Airbnb listings. This drop shows that the new rules are making it harder to find short-term rentals, which could mean fewer bookings and less income for owners.
These changes are part of a broader trend. Other cities are also tightening rules on short-term rentals to address housing shortages. For investors, this means rethinking strategies and possibly looking at other markets.
In Zurich, the landscape for property investment is shifting. Long-term rentals are becoming the norm, and adapting to these changes is crucial for anyone looking to invest in the city's real estate market.
Sources: Integra Dom, Airbtics, Enso Connect, IamExpat.ch
8) Updated property tax laws will affect Zurich's real estate appeal for investors
In 2025, Zurich's real estate market is undergoing significant changes due to new property tax laws. The canton of Zurich is revaluing properties, which means that property tax values are expected to increase by an average of 48%. This revaluation is a response to the sharp rise in real estate prices since the last valuation in 2009.
For investors, this increase in property tax values could mean higher costs associated with owning property in Zurich. The revaluation aims to align property tax values closer to the market value, which could impact the overall returns on investment. Additionally, the imputed rental values for single-family homes and condominiums are expected to rise by 11% and 10%, respectively, potentially affecting rental yields.
Comparatively, Zurich has offered more favorable tax conditions than other Swiss cities, making it an attractive option for investors in the past. However, with these new changes, investors might reassess the attractiveness of Zurich's real estate market. Media coverage has highlighted concerns from property owners about these higher taxes, reflecting a shift in investor sentiment.
Sources: PWC Tax Summaries, Bluewin News, Tax Partner
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.
9) Zurich’s property prices will stabilize after rapid growth, creating more opportunities for buyers
In recent years, Zurich's residential property market has experienced rapid growth, but signs now point towards stabilization. One key factor is the decreasing rate of property price increases. According to a UBS study, while prices have risen significantly over the past five years, the growth rate is expected to be lower in the coming years. This suggests that the market is cooling down, offering more opportunities for buyers.
Additionally, reports from real estate agencies like Wüest Partner predict an increase in the number of new homes built in Switzerland by 2025. This increase in housing supply could help stabilize the market by providing more options for buyers. New construction projects, such as those in Wankdorf City 3 and Kriens, are expected to contribute to this trend, further balancing supply and demand.
Moreover, changes in interest rates are affecting mortgage affordability. The Swiss National Bank is expected to cut interest rates, making mortgages more affordable and potentially increasing demand. This could lead to a more balanced market as more buyers are able to enter the market. Anecdotal evidence from real estate agents also suggests that there is more negotiation room in property deals, indicating that buyers have more bargaining power.
Sources: Swissinfo, Wüest Partner, Julius Baer
10) Suburban rents will increase as more people look for affordable living outside the city
In recent years, we've seen a noticeable shift in where people choose to live, especially around Zurich. Back in 2023, the Homegate rent index showed that rental prices in Zurich's suburbs were on the rise, with places like Schwyz and Zurich seeing increases of 11% and 8%, respectively. This was largely due to a growing demand for housing in these areas.
One of the main reasons for this shift is the increasing property prices in Zurich's city center. As these prices continue to climb, more people are looking for affordable alternatives, which they often find in the suburbs. This trend was already evident in 2024, as many people began moving away from the city to escape the high costs.
Additionally, a UBS report highlighted that an average of 15,000 people were leaving the five largest Swiss cities each year, with Zurich being one of the most affected. This migration was driven by a housing shortage and rising rents in urban areas, pushing people to consider suburban living as a more viable option.
Sources: Swiss Info, 103.3 WVYB, IAmExpat
11) Virtual property tours will increasingly attract international buyers to Zurich’s real estate market
Virtual property tours have become increasingly popular, especially in the past few years. By 2025, more than half of adults have experienced a virtual tour, and a significant 67% of home buyers now expect this feature when browsing listings. This shift in expectations has made virtual tours a standard part of the home-buying process.
In 2023, there was a remarkable 70% increase in property viewings through virtual tours. This surge is largely due to the flexibility they offer, allowing potential buyers to explore properties at their convenience. This convenience is particularly appealing to international buyers who may not be able to visit Zurich in person.
Zurich's real estate market is also seeing a rise in international interest. With 19.1% of Zurich's population being permanent foreign residents, the city is a hotspot for international buyers. The stable political environment and favorable economic policies in Switzerland make Zurich an attractive destination for investors from around the world.
Virtual tours have proven to be a powerful tool in attracting these international buyers. Homes with virtual tours receive 48% more interest than those with only photos and videos. This increased interest translates into more inquiries and interactions, with a 40% rise in client engagement reported.
Real estate agencies have recognized the benefits of virtual tours, with many adopting this technology to meet the growing demand. The media has also highlighted the convenience and accessibility of virtual tours, emphasizing how they save time and reduce costs by minimizing the need for multiple physical viewings.
Moreover, the COVID-19 pandemic accelerated digital adoption in real estate, making virtual tours a necessity. This digital shift has made geographical barriers less relevant, leading to a 50% increase in inquiries from international buyers. The ability to explore properties remotely has facilitated rapid deal closures, reducing the time to close deals by 40%.
As remote work trends continue, more professionals and expatriates are drawn to Zurich for its quality of life, further driving demand for international properties. Virtual tours offer these buyers a safe and convenient way to explore potential homes, contributing to a 30% increase in client satisfaction.
Sources: Momentum Virtual Tours, Global Property Guide, PhotoUp
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12) Property values in newly connected areas of Zurich will rise with the expansion of the public transport network
When Zurich expanded its public transport network in 2023 and 2024, it set the stage for a rise in property values in newly connected areas. Historical data from previous expansions showed that property values tend to increase when new transport links are introduced. For example, areas like Altstetten and Oerlikon, which saw tram network expansions, experienced a boost in property values.
Looking at other cities like Berlin and Munich, we see a similar pattern where public transport expansions led to significant property value appreciation. These case studies provide a precedent for what Zurich is experiencing now. Additionally, the predicted population growth of 100,000 inhabitants and 40,000 new jobs by 2040 has increased demand for housing in well-connected areas, further driving up property values.
Surveys have consistently shown that buyers prefer properties near public transport due to the convenience it offers. This preference has made properties near tram stops or stations in Zurich more desirable and valuable. Moreover, improved public transport connectivity reduces commute times, making living in these areas more attractive and increasing property desirability.
Sources: Urban Transport Magazine, Engel & Völkers, IAmExpat
13) Bike-friendly infrastructure will boost appeal of certain neighborhoods to eco-conscious buyers
In recent years, Zurich has made significant strides in developing bike-friendly infrastructure, which has caught the attention of eco-conscious buyers. The city committed to expanding its bicycle infrastructure by 50 kilometers, ensuring that cycle routes run through the entire city on district roads, mostly free of cars. This expansion makes cycling a more viable and attractive option for daily commuting.
Moreover, Zurich is converting a 192-meter-long tunnel under the main railway station for bicycle use, providing a safe and efficient route for cyclists. This kind of infrastructure not only enhances safety but also encourages more people to consider cycling as a primary mode of transport. Additionally, the construction of the Landschaftsbrücke, a 530-meter-long bridge specifically for soft mobility, further demonstrates Zurich's commitment to promoting cycling.
Surveys have shown a growing preference for bike-friendly neighborhoods, with 40% of respondents using multiple eco-friendly transport modes. This trend is reflected in real estate listings, which often emphasize proximity to bike paths, highlighting the attractiveness of these neighborhoods to eco-conscious buyers. Furthermore, data indicates that cycling infrastructure positively impacts property values, retail sales, and public health outcomes, making these areas more desirable.
Sources: ECF, Bouygues Construction, Meep
14) Luxury property rents will stabilize as the market adapts to shifting demand patterns
Luxury home prices in Zurich have slowed down significantly, with a modest 2% rise in 2023 compared to an 8% increase in 2022.
This cooling trend is partly due to rising vacancy rates in luxury properties. While Switzerland's overall vacancy rates are still low, the luxury segment is showing signs of stabilization, hinting that demand might be leveling off.
Zurich is seeing more luxury apartments thanks to new developments, even if building permits haven't surged. These new options for tenants are helping to balance supply and demand, which can stabilize rents.
As more properties become available, tenants have more choices, which can ease the pressure on rent prices. This shift is crucial for potential buyers looking for a stable investment.
Insider knowledge suggests that rents in luxury properties will stabilize as the market adjusts to changing demand patterns. This is a key consideration for anyone thinking about investing in Zurich's real estate.
For those eyeing a property purchase, understanding these dynamics can offer a strategic advantage. Knowing when the market is cooling can help you make a more informed decision.
Sources: UBS, SwissInfo, Henderson Investment Group
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.
15) Foreign buyers will increasingly target Zurich's tech districts as the city gains a reputation as a tech hub
Zurich has become a magnet for tech companies, with giants like Microsoft, Google, and Amazon setting up shop in the city. This influx of major players highlights Zurich's growing reputation as a tech hub, making it an attractive destination for foreign investors looking to capitalize on the tech boom.
The job market in Zurich is thriving, especially for tech professionals, with competitive salaries that draw talent from around the world. This high-quality job market not only attracts skilled workers but also increases the demand for residential properties, particularly in tech-centric neighborhoods.
Moreover, Zurich's recognition as a leading fintech hub in Europe further cements its status as a tech powerhouse. The city's strong position in the Global Fintech Hub Ranking underscores its potential for innovation and entrepreneurship, appealing to foreign buyers interested in tech-driven real estate investments.
Sources: Fintech News, Greater Zurich Area, Trust in Soda
16) Foreign buyers will target suburban areas for larger properties at lower prices
Foreign buyers are increasingly focusing on suburban areas as they search for larger properties at lower prices. In 2023, central Zurich saw a rise in property prices, with single-family homes averaging CHF 4.18 million (€4.28 million), making it less affordable for many buyers. This trend is pushing buyers to consider more affordable options in the suburbs.
Suburban areas offer more affordable real estate compared to central Zurich. For instance, in 2023, the average price for single-family homes in Geneva was CHF 3.38 million (€3.47 million), which is lower than in Zurich. This price difference makes suburban areas attractive to foreign buyers looking for larger properties at lower costs.
Additionally, suburban areas are seeing an increase in the availability of larger properties. A report by Wüest Partner indicated that new housing construction is expected to rise in 2025, with many new homes being built in suburban areas around Swiss cities, including Zurich. This increase in supply caters to the demand for larger properties, making suburban areas more appealing to foreign buyers.
Sources: Engel & Völkers, IAmExpat
17) Luxury rental yields will drop as high-end tenants look for more competitive pricing
The luxury rental market in Zurich is seeing some changes, with yields expected to decline.
There's been a boom in new luxury apartments, which means tenants now have more choices. This has led to landlords facing stiffer competition to fill their properties.
High-end tenants are becoming savvy, negotiating for lower rents and looking for better deals. Even though incomes are rising, people are more focused on saving money, which is a shift from the past.
Media reports highlight an oversupply of luxury properties, signaling a shift to a tenant-friendly market. Landlords are now offering perks like discounts to attract tenants, which wasn't common before.
This increased competition among landlords is likely to drive down luxury rental yields even more. The market dynamics are changing, and landlords are feeling the pressure to keep up.
With more options and incentives, tenants are in a strong position, and landlords are adjusting their strategies to stay competitive.
Sources: AM Relocation, Loebsack & Brownlee, Swiss Marketplace Group
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.