Neuchâtel & Freiburg: Bilingual cantons, double opportunities

Why bilingual cantons particularly attract investors

In Fribourg (FR) and Neuchâtel (NE), solid demand structures meet diverse property profiles – from urban condominiums to single-family homes to tourism-related second residences. Bilingualism expands the buyer pool, increases the marketing spread, and lowers vacancy risks. This creates a robust deal flow for investors, which behaves more independently of economic cycles than in monolingual niches.

Market dynamics 2021–2024: Stability with a clear focus on residential use

Residential houses and condominiums form the core of the nationwide auction market. In 2023, these two types accounted for about two-thirds of all appointments; in 2024, the share even rose to about three-quarters.

At the same time, the robustness of the volume is evident: In 2024, the number of forced sales slightly decreased to 610, while the total volume – driven by higher-quality properties – increased to around 671 Mio. CHF. Seasonal clusters remain clearly visible: most appointments were scheduled for June and October, while July/August passed more quietly.

Price window in direct comparison: Fribourg versus Neuchâtel

Those who invest in FR and NE benefit from two complementary price worlds:

• Condos (2023): In Neuchâtel, the average market values were around 286 Tsd. CHF – an attractive entry level. In Fribourg, they were around 835 Tsd. CHF, which offers room for high-quality locations and rental concepts.
• Residential Houses (2023): In Neuchâtel, residential houses achieved an average of around 893 Tsd. CHF, while in Fribourg, it was about 737 Tsd. CHF. This makes Fribourg particularly suitable for house strategies with value-add potential (energy refurbishment, area densification), while Neuchâtel tends to depict valuable micro-locations in the housing segment.

Indicator (Selection)	Fribourg (FR)	Neuchâtel (NE)
Ø Market value of condo (2023)	~ 835 Tsd. CHF	~ 286 Tsd. CHF
Ø Market value of residential house (2023)	~ 737 Tsd. CHF	~ 893 Tsd. CHF
Market share of residential use	Nationwide dominant (2023 ≈68 %, 2024 ≈75 %)

Strategies for different yield profiles

1) Entry yield through condominiums in Neuchâtel

The low condo price level in NE allows for conservative calculations: small/medium units in Neuchâtel (NE), La Chaux-de-Fonds (NE), or Le Locle (NE) can often be efficiently renovated and are in demand – ideal for buy-to-let with predictable cash flows.

2) Value-Add with residential houses in Fribourg

The moderate average house values in FR open up opportunities for Capex-driven value increases. In Fribourg (FR), Bulle (FR), or Murten (FR), properties regularly exist where energy upgrades, floor plan adjustments, or the repurposing of ancillary rooms directly improve marketability.

3) Seasonality as a driver

Traditionally, the number of appointments decreases during the summer break, while late spring and autumn remain peak phases. Those who organize due diligence processes tightly can strategically utilize the dense appointment blocks in June/October – especially in competition with strong cantons like Vaud (VD) and Ticino (TI), which regularly show high activity.

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Operational excellence: From award to yield

Checklist before bidding

• Understand market value: Reflect the official market value with local comparison offers and renovation needs. In 2024, total volume increased despite fewer appointments – an indication of higher property qualities in the auction pipelines.
• Know the property type: Residential houses/condos dominate; commercial and multi-family houses are rarer – corresponding differentiation occurs in competition and financing.
• Plan capital commitment: In NE, capital can be spread more broadly (more units), while in FR, selective house investments with clear value levers score.

Basic calculation (Pseudocode)

// Net initial yield (NAR)
NAR = (annual rent - reserves - operating/maintenance) / total costs

// Total costs
total costs = purchase price + renovation + ancillary costs (taxes, notary, fees)

// Example: NE-condo
purchase price = 300_000
renovation = 25_000
ancillary costs = 15_000
annual rent = 16_800
reserves+maintenance = 2_800
NAR ≈ (16_800 - 2_800) / (300_000 + 25_000 + 15_000) ≈ 4.2 %

Note: Yield is created at the purchase. In forced sales, quick availability, clean documents, and clear Capex plans count. Those who spread broadly in NE smooth the risk; those who target renovations in FR accelerate value uplift.

Regional notes & micro-locations

Neuchâtel (NE)

University and watchmaking location with stable demand in middle-class segments. Attractive entry properties in Neuchâtel (NE), La Chaux-de-Fonds (NE), and Le Locle (NE). The condo price range is moderate in comparison to the nationwide level and predestined for buy-to-let and core-plus.

Fribourg (FR)

As a link between the central plateau and the Romandy region, Fribourg (FR) – including Bulle (FR), Murten (FR), and Düdingen (FR) – offers a versatile house segment. Compared to NE, the average house market values are lower; this facilitates renovation and holding strategies with rental increase paths after modernization.

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Practical examples for search profiles

1. Core-Plus in NE: 2–3 room condos near public transport and job centers. Focus on technical partial modernization (kitchen/bathroom), energy quick-wins, Light CAPEX.
2. Value-Add in FR: Single-family home with structural potential (attic expansion, floor plan optimization). Target yield after Capex > 5 % at conservative rent.
3. Regional Diversification: A mix of 2–3 NE-condos plus 1 FR-house reduces concentration risk and increases cash flow – cluster seasonally in June/October.

Timing & Deal-Flow: Where the pipeline comes from

In 2022, both cantons showed solid activity (FR about 22 auctions, NE about 10), embedded in a national market with 622 appointments. In general, southwestern cantons have shown above-average activity for years – an environment where bilingual regions remain particularly liquid.

FAQ: Frequently asked questions about bidding & financing

• Set a bid cap? Yes. Derive an upper limit from conservative rental income and target NAR; include a Capex buffer.
• Financing? Obtain pre-commitment credit confirmations (affordability check); clarify disbursement after the award.
• Due Diligence? Land registry, appraisal documents, building rights/servitudes, energy condition, renovation roadmap.
• Competition? In peak phases, interested parties from VD, TI, or GE may move to adjacent districts – accordingly expand search radii in FR/NE.

Conclusion: Double chance, clear plan

Neuchâtel (NE) offers affordable entry points in established micro-locations; Fribourg (FR) provides house cases with solid value levers. Those who utilize seasonality, derive prices cleanly, and standardize processes unlock reliable sources of yield in bilingual cantons – today and throughout the cycle.