Zurich Housing Market 2025: Prices, Yields and Restrictions

The Zurich real estate market in 2025 continues to show steady growth, driven by limited supply, strong demand, and stable macroeconomic fundamentals. According to The Luxury Playbook, the average price for residential property has reached CHF 14,300 (€15,158) per square meter, reflecting a 4.2% increase compared to 2024.

Core Districts Lead the Price Growth

In Zurich’s historical center (Kreis 1), prices now exceed CHF 20,000 (€21,360) per square meter. In redevelopment districts such as Kreis 4 and Kreis 5, prices range from CHF 12,000 (€12,816) to CHF 15,000 (€16,020) per square meter. The city’s rental market remains stable, offering yields between 2.0% and 3.8%, with the highest yields observed in districts with more affordable prices:
- Oerlikon – CHF 10,500 (€11,130)
- Schwamendingen – CHF 10,200 (€10,812)
- Albisrieden – CHF 11,500 (€12,190)
- Kreis 4, 5 – CHF 13,200–14,000 (€13,992–14,840)

In premium locations such as Seefeld and Enge, rental yields remain at approximately 2–2.5%, attracting long-term capital preservation investors. Average rents for two-room apartments range between CHF 2,800–3,500 (€2,968–3,710), while three-room flats rent for CHF 3,800–4,800 (€4,028–5,088). Villas and penthouses command at least CHF 7,500 (€7,950) per month.

Strict Regulation and Market Stability

Switzerland’s strict rental regulations (Mietrecht) contribute to market resilience but require property owners to carefully navigate legal frameworks. Lease terms typically range from 1 to 3 years, while subletting and short-term rentals are often restricted in many districts.

Key market drivers include:
- Scarcity of land for new developments and lengthy permitting processes.
- Population growth fueled by both domestic migration and international relocations.
- A stable economy and strong Swiss franc.
- Low inflation, attracting institutional investors.

In 2024, Zurich recorded over 5,200 residential transactions. Demand primarily focuses on energy-efficient new developments and fully renovated properties that meet the city’s environmental standards. The majority of supply stems from redevelopment and densification rather than new large-scale construction.

Restrictions for Foreign Investors

Zurich remains a primarily domestic market, dominated by Swiss citizens and institutional investors. Foreign ownership is tightly regulated under Lex Koller law, which limits non-residents from purchasing residential property except for certain approved projects. This limits speculative activity and supports long-term price stability.

Premium Segment Expands

According to Julius Baer, Switzerland’s premium residential market finished 2024 with solid price increases: +4.1% for apartments and +4.6% for single-family homes. Zurich and Central Switzerland saw the strongest growth at 6%. Demand remains high for properties priced above CHF 15,000 per square meter. Transaction volumes are rising, mortgage rates have fallen to 0.25%, and rents continue to climb amid constrained supply.

Experts from The Luxury Playbook forecast further price growth of 2.5–4% for 2025. In districts such as Oerlikon, Kreis 5, and Seefeld, prices may approach CHF 14,700–15,000 (€15,582–15,900) per square meter. Rents are expected to rise by 3–5%, particularly for energy-efficient, well-located new developments.

Acute Housing Shortage

According to SWI, Switzerland faces the most severe housing shortage in Western Europe. Homeownership rates remain at just 36%, while vacancy rates in Zurich have fallen to a record low of 0.07%. The average price of a house stands at CHF 1.3 million (€1.38 million), while apartments average CHF 943,000 (€1 million). Only 9% of couples aged 30–40 can afford to purchase a home in Zurich due to high prices, limited new construction, and restrictive zoning policies.