Housing in Zurich: an overview of trends in the sector
Housing in Zurich is steadily increasing in price. The rise in prices is being driven by high demand against a backdrop of limited supply. Additionally, the Swiss real estate market remains one of the most attractive in Europe, thanks to its favorable macroeconomic environment.
According to The Luxury Playbook, a square meter in Zurich costs approximately €15,158. In 2025, the price growth exceeded 4%.
Dynamics of the Zurich housing sector
The largest increase in property values took place in the historic city center. Here, the price per square meter exceeds €21,360. In areas undergoing redevelopment, prices range from €12,816 to €16,020 per square meter.
In terms of profitability, the figures are stable, ranging from 2% to 3.8%. The highest returns are generated by properties cheaper than those in the city center. These areas include:
– Oerlikon, where the price per square meter is €11,130;
– Schwamendingen, where housing is offered at €10,812 per square meter;
– Albisrieden, where real estate costs €12,190 per square meter.
Although the maximum yield in Seefeld and Enge is 2.5%, these locations remain prestigious in Zurich. Nevertheless, this does not affect the high demand for local properties. Real estate in the area is a good option for protecting capital from inflation and depreciation.
The rental sector is showing stability in 2025 due to clear regulatory standards. The Zurich market offers the following rates:
– the rent for a two-room apartment is €2,968–3,710 per month;
– the rate for a three-room apartment ranges from €4,028 to €5,088 per month;
– the monthly rent for villas and penthouses is €7,950.
Property owners in Zurich must comply with strict rules regarding rentals. These rules ensure market stability and transparency for participants. The laws limit rentals to terms of one to three years. Furthermore, short-term rentals are prohibited in certain regions.
Trends in the Swiss real estate market
The market in Zurich and Switzerland as a whole is influenced by several factors, including:
– a shortage of land for development;
– a complex bureaucratic process for obtaining building permits;
– migration processes;
– a stable economy;
– low inflation;
– the market’s attractiveness to foreign investors.
In 2024, the total volume of housing sector transactions amounted to 5,200 contracts. The most sought-after properties are new homes that meet energy efficiency standards. Renovated old apartments that meet environmental standards are also in demand. Overall, redevelopment projects dominate the market rather than new construction.
Swiss citizens remain the primary buyers of housing in Switzerland. This is due to strict rules on the acquisition of real estate by foreigners.