The best cities and regions for foreclosures
June 19, 2025
Where is it particularly worthwhile to take a look at the auction calendar? A well-founded answer requires more than just a simple glance at the absolute auction figures. That’s why our analysis combines four core dimensions: Frequency, Discount Potential, Demand, and Renovation Costs, and derives a practical ranking score from them. The data foundation is based on the enforcement statistics from the Federal Statistical Office (BFS) and cantonal auction protocols for the year 2024.
1 Methodology at a Glance
- Frequency Index (30 %) = Auctions per 100,000 inhabitants.
- Price Discount (30 %) = Average estimated value − award price.
- Demand Pressure (25 %) = Vacancy rate × Population growth (inverted).
- Renovation Cost Factor (15 %) = cantonal construction cost index relative to the Swiss average.
Each dimension is rated on a scale of 0-10 points, with the maximum total score being 10.
2 Top Regions 2024, Our Scoreboard
| Rank | Region / City | Score | Strengths | Typical Object |
|---|---|---|---|---|
| 1 | Zurich & Agglomeration | 8.6 | High frequency, micro-vacancy | 2 ½-room apartment, District 11 |
| 2 | Vaud (Lausanne-Morges) | 8.1 | Large volume, 15 % discount | 1970s single-family home, post-war construction |
| 3 | Bern (City + Belt) | 7.9 | Solid cash flow, steady demand | Multi-family house, 6–10 units |
| 4 | Jura / Delémont | 7.5 | Highest relative output | Rustico, small commercial building |
| 5 | Ticino (Lake Lugano) | 7.2 | Lex Koller open, holiday demand | Holiday apartment < 70 m² |
| 6 | Valais (Central Valais) | 6.9 | Affordable inventory, eco-subsidies | Chalet > 1980, core renovation |
| 7 | St. Gallen & Rhine Valley | 6.7 | Wide range of offerings, moderate construction costs | Row house, 1990s |
3 Why These Regions Score
3.1 Zurich, Liquidity Beats Discount
With over 1,000 auctions per year, the canton of Zurich is the clear number 1. The price discount is moderate at an average of 10%, but is compensated by almost non-existent vacancy. The city administration conducts weekly auctions.
3.2 Vaud, Volume × Spread
Vaud scores with high frequency and noticeable discounts (12-18%). The 3.3% property transfer tax should be factored in, but often reduces competition from local homeowners.
3.3 Jura, the “Hidden Gem”
Measured against the population, the Jura has the highest auction rate. Renovation costs are 10% below the Swiss average, and promotion programs for mountain areas boost returns.
“Those who have time and utilize local craftsman networks often achieve double-digit IRR in the Jura, despite limited demand.”
4 Case Study: Two Investors, Two Strategies
4.1 Cash Flow Focus (City of Bern)
- Award for multi-family house (7 units): 2.7 million CHF
- Net rent after renovation: 145 k CHF / year
- IRR 9.4% at LTV 65%
4.2 Value-Add (Valais Chalet)
- Award: 540 k CHF (−18% compared to market)
- Eco-renovation: 180 k CHF, funding 60 k CHF
- Sale after 24 months: 960 k CHF → Gross margin 27%
5 Practical Tips for Regional Selection
- Drink Data: Screen auction protocols and BFS statistics weekly.
- Taxes & Additional Costs: VD 3.3% vs. ZH 0% can offset discount advantages.
- Look for ESG Leverage: Cantons with high CO₂ subsidies (TG, VS, GE) increase Return on Cost.
- Localize Banking Partners: Regional banks finance faster, know auction processes.
6 Conclusion: Region Matters, Returns Differentiated
The best region does not exist there are only those that best match your capital structure, risk tolerance, and time horizon. Zurich offers frequency and cash flow security, Vaud the largest spread, while Jura and Valais provide the rough diamonds with development potential. Those who internalize the regional rules, fees, and demand patterns turn the Swiss auction map into a portfolio full of yield oases.
