Which types of real estate are currently in particular demand

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.