If you have determined the right option is to purchase real estate because of the investment value, then you will definitely want to find the right piece of property. The best way to start the search is to consider what factors matter the most to you, like amenities, size of the property, purchase price, and location.

Then, you can start looking for real estate for sale whether you want the property for yourself or you are interested in renting out the property you have purchased. ImmoScout24 will make it easy to consider real estate for sale throughout the country and cities of Switzerland.

Buying property in Switzerland

Real estate in Switzerland covers everything from residential buildings, individual flats for purchase and blocks of flats to commercial properties and properties for specialised uses. Purchasing is a good approach for people who plan to use the property themselves – either as owner-occupiers or as the owners of business premises – as well as for investors seeking reliable rental income and long-term value appreciation. Buying property in Switzerland is particularly attractive thanks to the country’s stable economy, trusted legal system and high quality of life, making Swiss properties a reliable investment that retains value. The location, condition and intended use of the property are decisive factors in the purchase price, financing and long-term planning.

At a glance: buying property

• Suitable for owner-occupiers and investors (individual flats within blocks of flats (STWEG), detached houses and multi-unit dwellings)

• Low overall vacancy rate of 1.01% in Switzerland means properties offer good letting potential

• Acquiring permission to build on leased land or buying a leasehold property is a less expensive way to get on the property ladder, but it involves paying interest on the lease on an ongoing basis

• Remember that there are strict financing requirements (affordability, deposit)

Market overview: buying property in Switzerland

The housing stock in Switzerland comprises 4’840’096 dwellings. Over the last five years, 235’897 new homes have been built; construction has primarily focused on two- to four-room flats. Despite this growth, living space remains in short supply: the overall vacancy rate is 1.01%. Large flats are particularly rare (vacancy rate for 5-room flats: 0.72%; flats with more than 5 rooms: 0.84%), while 1-room flats offer slightly better availability, with a vacancy rate of 1.27%. The population of Switzerland changed by 1.54%, to 9’051’029, in three years; the unemployment rate is 1.47%. These factors bolster demand and mean that investments retain their value. The average rent in Switzerland is CHF 1640/month, but returns on investment can vary widely by location – an important aspect to consider in investment decisions.

What costs are involved in buying a property?

The buyer incurs notary and land registry fees in addition to the purchase price; depending on the canton, a transfer tax may also be payable. When purchasing flats, buyers should also consider that they will have to contribute to the communal renovation fund (STWEG). For owner-occupiers, the imputed rental value of the property is taxable; in many places, an additional property tax is levied. If you build on leased land or buy a leasehold property, you will also have to pay interest on the lease. You should be able to contribute a minimum {deposit_percentage}% deposit to the financing. Compare different interest rate models (e.g. SARON, fixed-rate mortgage).

A step-by-step guide to deciding whether buying property is right for you

1. Define your goals and the type of property you want (owner-occupation, return on investment, building on leased land/leasehold).

2. Calculate your budget, deposit (approx. 20%) and affordability.

3. Location analysis: public transport, taxes, development of the neighbourhood, demand.

4. Due diligence: land registry, building permits, rules governing the property (STWEG), condition of property.

5. Legal & letting: tenancy law/reference interest rate, tenancy agreements, Lex Koller (Federal Act on Acquisition of Real Estate by Persons Abroad).

6. Select financing, negotiate purchase agreement, solicitor and land registry.

Next steps

Start your search using filters for the location and number of rooms. Arrange viewings and review your documents: copy of the land registry entry, cadastral map, records and reports (STWEG), leasehold agreement, rental index and utility bills. Clarify financing and tax implications at an early stage and compare mortgage offers.