Which types of real estate are currently in particular demand
June 22, 2025
The foreclosure market reflects the major trends of the free market, often with a time lag of twelve to eighteen months. Since the interest rate increase in 2022, the preferences of bidders have noticeably shifted: towards smaller, energy-efficient units in prime locations or towards development-ready multi-family homes, while peripheral large properties are losing attractiveness. Based on more than 6,500 auction protocols from the year 2024/25, we show which property categories are currently leading in Switzerland, and why.
1 The five most sought-after types of real estate
| Rank | Type | Auction Success Rate* | Average Price Discount | Purchase Motives |
|---|---|---|---|---|
| 1 | 2½-3½ room condominium | 95 % | -8 % | Singles/Couples, immediately rentable |
| 2 | Multi-family home with 4-10 units (built 1960-90) | 93 % | -15 % | Value-add through energy refurbishment |
| 3 | Holiday apartment < 70 m² (Ticino/Valais) | 90 % | -11 % | Second home, AirBnB income |
| 4 | Compact single-family home in the suburban belt | 88 % | -13 % | Young families, country-city hybrid |
| 5 | Rustico / Tiny-house suitable property | 82 % | -18 % | DIY renovators, eco-tourism |
*Auction success rate = share of auctions with a success ≥ appraisal value × 0.9.
2 What makes these types so attractive?
2.1 City apartments 2½-3½ rooms
- Micro-vacancy < 1 % → guarantees rental within weeks.
- SARON mortgages reward small loan amounts.
- Energy label C+ is often sufficient to meet future CO₂ regulations.
2.2 Multi-family homes built 1960-90
- High value-add leverage: facade, PV, heat pumps → rent increase +20 %.
- Funding mix (federal + cantonal) can reduce CAPEX by 35 %.
- Institutional investors are shedding large packages → more supply on auction lists.
2.3 Holiday apartments under 70 m²
- Lex-Koller open in Valais & Ticino → broad international bidder base.
- Workation trend extends the season → higher occupancy rates.
2.4 Single-family homes in the suburban belt
- Price drop during interest rate spike 2022 ≈ 8 % → entry opportunity.
- 15-minute city goals push public transport locations (commuter towns).
2.5 Rustici & Tiny opportunities
- In 2024, the Mountain Areas Program II was launched: 40 % eco grant.
- Social media boom: #alpchalet → demand from digital nomads.
3 Price/Yield comparison 2024/25
| Type | Average Auction Price CHF/m² | Average Rent CHF/m² | Gross Yield |
|---|---|---|---|
| 2½-3½ room apartment | 6,950 | 310 | 4.5 % |
| Multi-family home value-add | 4,200 | 230 | 5.7 % |
| Holiday apartment | 7,100 | 390 | 5.3 % |
| Single-family home suburban | 5,000 | — | Owner-occupied, 3.8 % ROI on real estate |
| Rustico | 3,100 | 180* | 6.1 % |
*Short-term rent calculated based on full occupancy.
4 Case studies from practice
4.1 Multi-family home (7 units) in Olten
- Auction price: 1.85 million (−14 % against market)
- Renovation: 480 k CHF (PV, heat pumps, insulation)
- Subsidy: 165 k CHF
- Net rent after renovation: 142 k CHF p.a.
- IRR: 11.2 %
4.2 Tiny Rustico in Val Maggia
- Auction price: 215 k CHF (stone house 55 m²)
- Conversion: 125 k CHF, subsidy 45 k CHF
- AirBnB revenue (Year 1): 47 k CHF
- Cash-on-Cash: 18 %
5 Outlook 2025/26, will the trend continue?
- Interest plateau persists, small, energy-efficient apartments remain a safe haven.
- ESG obligations (CO₂ roadmap from 2027) increase pressure on unsanitized multi-family homes → value-add persists.
- Tourism recovery strengthens Alpine micro-properties.
6 Conclusion: Demand follows utility and energy efficiency
Switzerland is experiencing a duality in foreclosures: compact urban and value-add multi-unit properties dominate the awards, accompanied by holiday and tiny formats with a lifestyle bonus. As long as interest rates remain high and ESG regulations tighten, capital is shifting from large-format legacy burdens towards small, flexible, and energetically optimizable buildings. Those who identify, calculate, and smartly renovate these types will secure lucrative discount yields in the future.
