4 days ago
Short-Term Rentals In Switzerland: Tips For Profitability In 2025
Johan Hajji, Cofounder & Co-CEO at The BnB Group. Passionate about property management, real estate investment, proptech & business growth
The Swiss property market shows an impressive upward trend, with rental prices in urban areas jumping as high as 7.5% in cities like Glarus and 6.3% in Zurich. Moreover, the Swiss National Bank's interest rate cut has created ideal conditions for short-term rental investment.
Vacancy rates were expected to drop below 1% last year, while net immigration hit 98,900 in 2023, according to UBS Asset Management. These factors added pressure to the real estate market. Meanwhile, tourist hotspots like Valais are booming, with a 43% increase in U.S. visitors from January to October 2023 compared to 2019.
With strong 2025 forecasts, well-placed investments in Swiss cities and vacation destinations could yield positive returns. My company works with owners located in Switzerland, so I want to explore what I've found are some of the top regions, income-boosting strategies and key rental laws short-term rental owners need to consider to keep investments compliant and sustainable.
Regional variations in Switzerland's rental market create unique investment opportunities throughout the country. Real estate investors need to understand these differences to maximize their returns in the Swiss property market.
Zurich, Switzerland's financial hub, boasts impressive short-term rental numbers: At the time of this writing, the average Airbnb occupancy rate is 75%, average daily rate is 145 euros and average monthly revenue is 40,564 euros, according to Airbtics. The city's vacancy rate is just 0.07%, SWI reported, which means demand keeps outpacing supply. In my company's experience, the city stays relatively open to short-term rentals, and the temporary housing and rental market in the Zurich market remains competitive.
Geneva shows strong potential for short-term rentals, with 73% occupancy rates, daily rates of 127 euros and possible monthly revenue of 34,562 euros, per Airbtics. The housing crunch here is real—vacancy rates sat at just 0.46% in 2024. It's also worth noting that the city has a short-term rental limit of 90 days.
Valais turns out to be a surprise leader in profitability. Airbtics' data shows that its occupancy rate is lower at 59%, but it pulls in higher daily rates (186 euros) and monthly revenue (41,517 euros). The canton sweetens the deal with tax perks, including options for lump-sum taxation, which may make it an attractive option for those concerned about Swiss property taxes.
Looking beyond these major markets reveals several hidden gems for vacation rentals in Switzerland:
• Lugano is an Italian-speaking part of Switzerland that I've noticed is popular among remote workers.
• Alpine destinations like St. Moritz, Zermatt and Davos in the Swiss Alps have better odds of bringing in exceptional rental yields during peak seasons.
• Crans-Montana often stays busy year-round thanks to events such as golf tournaments, skiing events and cultural festivals.
Switzerland's real estate market has shown stability, drawing both local and international clients. Smart investors should look carefully at local rules, however, since they vary between cantons and can affect how well investments perform.
Becoming skilled at pricing strategy remains crucial to running profitable short-term rentals in today's Swiss real estate market. Property owners can consider using dynamic pricing tools that automatically analyze market data and adjust rates based on immediate conditions.
Price optimization can help you increase rates when demand peaks and lower them in slower seasons to minimize vacancies and boost revenue. Setting minimum stay requirements during peak seasons can also prevent revenue loss from short bookings. A two or three-night minimum for weekends and holidays can reduce turnover costs and increase overall income.
Additionally, stay up to date on seasonal patterns revealed through occupancy analytics to help you run targeted promotions during slower periods. For example, alpine destination properties command premium rates during winter months but need compelling promotions during shoulder seasons.
Strive for exceptional guest experiences to leverage premium pricing and ensure future bookings. Properties that maintain high ratings can charge more than similar accommodations with average reviews.
This year, I expect to see a growing use of data analytics in rental operations. Immediate tracking of key metrics like occupancy rates and nightly revenue can help you spot trends and measure against competitors. I believe evidence-based management will shape the future of Swiss real estate market conditions.
Swiss real estate investors face growing challenges with short-term rental regulations, particularly a widespread lack of compliance. Rules vary by region, making local knowledge essential for success.
Requirements will vary by area, so be sure to consider regulatory differences. Many municipalities apply zoning laws to control rental activity, requiring specific residential ratios or area restrictions.
In Ticino, owners can rent converted barns for up to 90 days without planning permission, even in protected areas, according to SWI. But this practice is under scrutiny and may trigger complaints, SWI also noted.
Sustainability is now central to Swiss property trends. The national "Swisstainable" strategy encourages longer, eco-conscious stays and support for local culture and products. Property owners must follow environmental rules regarding waste, emissions and pollution. Property owners who break these standards risk steep fines for serious environmental violations.
Meeting Minergie standards and gaining certification can boost energy efficiency and appeal, especially near public transport. As regulations tighten, staying compliant and building strong ties with local authorities will be key to long-term profitability.
In my view, the Swiss short-term rental market shows strong investment potential through 2025, highlighting how important location is for renting apartments or investing in furnished properties. To help improve returns, investors can use dynamic pricing and set minimum stays during peak periods to reduce turnover costs. Combine this with excellent guest service for long-term success.
Regulations differ by region, and stricter rules may emerge. Staying compliant and following sustainability standards like "Swisstainable" helps protect your investment in vacation or temporary housing. Swiss real estate remains a stable option in the European market and can be ideal for data-driven, regulation-aware investors.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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