Foreclosure auctions in Zurich: discover city properties below market value

The city of Zurich is considered the most expensive place in Switzerland, yet those who study the calendars of the debt collection offices encounter forced auctions (ZVG), where even premium locations are suddenly traded at double-digit discounts. In 2023, ZH, a total of 27 properties were auctioned, which corresponds to only 1.7 auctions per 100,000 inhabitants, a minor figure compared to Ticino (38.2). It is precisely this scarcity that leads to bidders in the auction room often having only a few competitors, allowing the hammer to achieve discounts of 15-30% below the market value.

1 | Zurich Numbers at a Glance

Year	ZVG Number	Average Apartment (Thousand CHF)	Average Residential House (Thousand CHF)	Comment / Source
2021	26	1,199	1,750	Corona recovery effect
2022	29	774	1,568	Market stabilization
2023	27	1,793	1,984	Return of high-priced city properties
2024	≈ 34*	n.a.	n.a.	*Bar chart page 5

Since 2021, the number of properties has fluctuated only slightly, while the average market values have risen sharply, indicating that "more expensive" urban locations are finding their way into the ZVG register, while peripheral municipalities are less represented.

2 | Why Below Market Value?

Procedural Mechanics: The first call must only reach 70% of the official market value. If this minimum is not met, the lower limit is completely discarded in the second call.
Low Competition: With barely 30 appointments per year spread across 1.6 million inhabitants, the pool of buyers remains manageable.
Information Advantage: Many business employees in Zurich do not notice the appointments, a plus for prepared investors.

"The urban cantons of Bern and Zurich are lagging behind in this representation, even though they were significantly higher ranked in absolute numbers of auctions." (Market report 2023, p. 5)

3 | Property Mix & Typical Discounts

Apartments: 2023 average market value of 1.79 million CHF. Starting bid therefore from 1.25 million CHF, final bids often in the range of 1.35-1.50 million CHF (-15 %).
Residential Houses: Average 1.98 million CHF. Bids between 1.4-1.7 million CHF are not uncommon (-20 %).
Multi-family Houses & Commercial Lofts: Rare, but game-changers: Here, the price is almost always decided in the second call due to the lack of cash-strong bidders.

4 | Three Strategies for Zurich City Deals

1 | "Fix & Hold" in 1980s Districts

Apartment in Oerlikon, market value 1.65 million CHF, bid 1.18 million CHF (second call). After 120k CHF modernization, net rent 4,500 CHF/month → Initial yield 4.1 %.

2 | Micro-serviced Apartments in District 5

Vacant office (commercial category), market value 1.45 million CHF. Conversion into 6 studios of 24 m² each, target rent 170 CHF/night → Net yield > 8 %.

3 | "Trade-Up", Single-family House in Gold Coast Municipalities

Residential house in Küsnacht, market value 3.2 million CHF, bid 2.45 million CHF (-23 %). After partial subdivision → Exit as two single-family homes at 2.1 million CHF each.

5 | Bidding Tactics: How to Win the Auction

Use the holiday month of July: In 2024, only 19 auctions were recorded across Switzerland, and competition was never lower.
Cash & Bank Guarantee: 10 % deposit on the auction day, the rest within 20 days. Presenting this in writing signals strength.
Monitor second calls: If the first appointment fails, you receive an invitation stating when the price ceiling drops, the actual "sweet spot" of the Zurich ZVG market.

6 | Zurich in Comparison with Other Cantons

	ZH	VD	TI
ZVG 2023 (pieces)	27	73	135
ZVG/100,000 inhabitants	1.7	9.1	38.2
Average Residential House (2023, Thousand CHF)	1,984	2,213	1,458
Average Apartment (2023, Thousand CHF)	1,793	952	797

Source: Market report 2023, pages 5-10.

Zurich combines high market values with relatively few appointments, ideal for buyers who want to achieve significant wealth effects with one deal per year.

Conclusion: Premium Discounts in the Heart of Zurich

The data from the last four years show: Despite minimal quantities, Zurich is one of the most value-stable and at the same time most profitable places for forced auctions in Switzerland. Those who check the appointment calendar early, secure financing, and consistently bid at the second call can often acquire a city center property for 20% below market value, an advantage that classic portals have long taken into account.