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Forbes
4 days ago
- Business
- Forbes
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. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
CNBC
10-06-2025
- Business
- CNBC
Expect inflation prints to really start to accelerate after this month, says UBS' Evan Brown
Evan Brown, UBS Asset Management portfolio manager and head of multi-asset strategy, joins 'Squawk Box' to discuss the state of the economy, inflation outlook, impact of tariffs, U.S. growth outlook, and more.
Mint
05-06-2025
- Business
- Mint
Japan 30-Year Bond Auction Sees Weakest Demand Since 2023
Japan's 30-year bond auction saw the weakest demand since 2023, ramping up pressure on the government to adjust issuance. The bid-to-cover ratio at the sale was 2.92, compared with a 12-month average of 3.39. The ratio for the previous auction was 3.07. The 30-year bond pared an earlier gain with the yield falling 2.5 basis points to 2.92% ahead of Thursday's sale, down from 3.185% last month, the highest level since it was first sold. The lowest price was 91.45, compared with 92 in a Bloomberg survey. Market players often focus on a survey estimating the lowest accepted price of the bond, which comes out in the lead-up to the auction result. They then compare that with the actual cut-off price to gauge the success of the sale. The tail, or the gap between average and lowest-accepted prices, was 0.49, versus 0.30 for the previous sale. Disappointing demand at sales of 20-year and 40-year bonds late last month exposed investor concern about a lack of appetite for longer tenors, sending a fresh warning to the government that it may need to rethink issuance plans. Although a 10-year auction this week brought some relief for the Japanese market, expanding deficits are putting longer bonds under pressure worldwide. Following the jump in long-term yields, Japan's finance ministry sent out a questionnaire to market participants that asked for their views on issuance and the current market situation, signaling that it may be preparing to adjust debt issuance. A draft of the government's annual fiscal policy plan seen by Bloomberg also emphasized the need for more domestic buying of Japanese government bonds. To calm volatility in the bond market, the government needs to stop issuing debt with maturities above 30 years, said Kevin Zhao, head of global sovereign and currency at UBS Asset Management. Demand for the tenor is dwindling due to demographic shifts in the country's aging society as Japanese life insurers and pension funds no longer need too stock up on bonds maturing in 30 years or longer like they have in the past decades, said the veteran portfolio manager. Read: UBS AM Says Japan Should Stop Issuing Long Bonds to Halt Selloff Bank of Japan Governor Kazuo Ueda hinted at the likelihood that the central bank will continue to slow the pace of government bond purchases next fiscal year. The BOJ will review its bond buying plans at its board meeting on June 16-17. This article was generated from an automated news agency feed without modifications to text.
Yahoo
14-05-2025
- Business
- Yahoo
Is Edison International (EIX) the Best Dividend Growth Stock with High Yields?
We recently published a list of the . In this article, we are going to take a look at where Edison International (NYSE:EIX) stands against other best dividend growth stocks. Dividend-paying stocks have been gaining popularity among investors due to their long-term advantages. According to Jeremy Zirin, who leads the US equity team for private clients at UBS Asset Management, companies with a consistent track record of increasing dividends are a smart choice for investors seeking a balanced approach in the current market environment. When markets dipped in April after President Donald Trump announced new tariff policies, investors gravitated toward high-yield dividend stocks. However, as trade tensions began to ease and negotiations progressed, markets recovered. Stocks surged particularly after the US and China agreed to temporarily reduce tariffs. He made the following comment about dividend stocks: 'The higher-dividend-yielding strategies tend to do better when markets are in real turmoil and declining, but if there's more chop, more volatility and potentially upside … you don't want to be overly defensive.' Historically, companies that consistently increase their dividends have tended to be less volatile and often delivered stronger returns than the broader market, including benchmarks like the S&P Equal Weight Index. According to a report by Guggenheim, from May 2005 through December 2024, firms that either initiated or raised their dividends generated an average annual return of 10.5%. In contrast, companies that cut or suspended their payouts posted just 5.5% annually. The overall market returned 10.4% during this timeframe, slightly behind the dividend growers. The report also highlighted that dividend growth strategies have historically performed well in both rising and falling markets, making them an attractive option for investors focused on long-term gains and downside protection. According to a report by S&P Global, the growth of global dividend payments had been slowing since the post-COVID recovery, but that trend reversed last year. In 2024, the growth rate unexpectedly accelerated to 8%, with shareholders receiving approximately $180 billion more than the previous year. This increase came as a surprise given the persistent geopolitical and economic challenges. The report also highlighted that several sectors and regions saw record dividend initiations, including the US technology, media, and telecom (TMT) sector, banks in Italy and Spain, Japan's automotive industry, and a general rise in payouts from Mainland China. Even with extreme price fluctuations, dividend payments from the oil and gas sector remained strong. Looking ahead, the report suggested that this high level of dividends is likely to hold steady, with global payouts expected to remain at $2.3 trillion in 2025. With growing investor appetite for dividend-paying stocks, many companies have responded by gradually increasing their dividend payouts. A report by Janus Henderson revealed that global dividend payments reached a record $1.75 trillion in 2024, reflecting a 6.6% rise on an underlying basis. The overall growth rate came in at 5.2%, slightly held back by a drop in special one-time dividends and the effect of a stronger U.S. dollar. Out of the 49 countries covered in the report, 17—including major economies such as the US, Canada, France, Japan, and China—posted record-high dividend levels. In total, 88% of companies either raised or held their dividends steady over the year. A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires. For this list, we screened for dividend stocks with yields higher than 3% as of May 13. From this group, we further refined our selection criteria by identifying stocks with a dividend growth streak of 10 years or more. The stocks are ranked in ascending order of their dividend yields. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Dividend Yield as of May 13: 5.89% Edison International (NYSE:EIX) is an American public utility company, headquartered in California. The company specializes in the generation of electricity from multiple sources, including natural gas, nuclear energy, and renewables. In the first quarter of 2025, Edison International (NYSE:EIX) reported revenue of $3.8 billion, which fell by 6.5% from the same period last year. The revenue missed analysts' estimates by $493.9 million. Its EPS came in at $1.37, which beat the consensus by $0.16. The company's operating income came in at $2.1 billion, growing significantly from $245 million in the prior-year period. Meanwhile, the company reaffirmed its 2025 Core EPS guidance in the range of $5.94 to $6.34 and expressed continued confidence in achieving a 5% to 7% annual growth in Core EPS through 2028, projecting earnings between $6.74 and $7.14 by that time. Edison International (NYSE:EIX)'s cash position remained strong as the company ended the quarter with $1.3 billion in cash and cash equivalents, up from $193 million at the end of December 2024. The company's operating cash flow came in at $1.2 billion. It currently offers a quarterly dividend of $0.8275 per share and has a dividend yield of 5.89%, as of May 13. EIX is one of the best dividend stocks on our list as the company has raised its payouts for 21 years straight. Overall, EIX ranks 5th on our list of the best dividend growth stocks with high yields. While we acknowledge the potential of EIX as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than EIX but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . 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Yahoo
14-05-2025
- Business
- Yahoo
Is United Parcel Service (UPS) the Best Dividend Growth Stock with High Yields?
We recently published a list of the . In this article, we are going to take a look at where United Parcel Service, Inc. (NYSE:UPS) stands against other best dividend growth stocks. Dividend-paying stocks have been gaining popularity among investors due to their long-term advantages. According to Jeremy Zirin, who leads the US equity team for private clients at UBS Asset Management, companies with a consistent track record of increasing dividends are a smart choice for investors seeking a balanced approach in the current market environment. When markets dipped in April after President Donald Trump announced new tariff policies, investors gravitated toward high-yield dividend stocks. However, as trade tensions began to ease and negotiations progressed, markets recovered. Stocks surged particularly after the US and China agreed to temporarily reduce tariffs. He made the following comment about dividend stocks: 'The higher-dividend-yielding strategies tend to do better when markets are in real turmoil and declining, but if there's more chop, more volatility and potentially upside … you don't want to be overly defensive.' Historically, companies that consistently increase their dividends have tended to be less volatile and often delivered stronger returns than the broader market, including benchmarks like the S&P Equal Weight Index. According to a report by Guggenheim, from May 2005 through December 2024, firms that either initiated or raised their dividends generated an average annual return of 10.5%. In contrast, companies that cut or suspended their payouts posted just 5.5% annually. The overall market returned 10.4% during this timeframe, slightly behind the dividend growers. The report also highlighted that dividend growth strategies have historically performed well in both rising and falling markets, making them an attractive option for investors focused on long-term gains and downside protection. According to a report by S&P Global, the growth of global dividend payments had been slowing since the post-COVID recovery, but that trend reversed last year. In 2024, the growth rate unexpectedly accelerated to 8%, with shareholders receiving approximately $180 billion more than the previous year. This increase came as a surprise given the persistent geopolitical and economic challenges. The report also highlighted that several sectors and regions saw record dividend initiations, including the US technology, media, and telecom (TMT) sector, banks in Italy and Spain, Japan's automotive industry, and a general rise in payouts from Mainland China. Even with extreme price fluctuations, dividend payments from the oil and gas sector remained strong. Looking ahead, the report suggested that this high level of dividends is likely to hold steady, with global payouts expected to remain at $2.3 trillion in 2025. With growing investor appetite for dividend-paying stocks, many companies have responded by gradually increasing their dividend payouts. A report by Janus Henderson revealed that global dividend payments reached a record $1.75 trillion in 2024, reflecting a 6.6% rise on an underlying basis. The overall growth rate came in at 5.2%, slightly held back by a drop in special one-time dividends and the effect of a stronger U.S. dollar. Out of the 49 countries covered in the report, 17—including major economies such as the US, Canada, France, Japan, and China—posted record-high dividend levels. In total, 88% of companies either raised or held their dividends steady over the year. A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services. For this list, we screened for dividend stocks with yields higher than 3% as of May 13. From this group, we further refined our selection criteria by identifying stocks with a dividend growth streak of 10 years or more. The stocks are ranked in ascending order of their dividend yields. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Dividend Yield as of May 13: 6.84% United Parcel Service, Inc. (NYSE:UPS) ranks fourth on our list of the best dividend growth stocks with high yields. The American multinational shipping and supply chain management company is one of the world's largest organizations. The company offers a wide array of comprehensive logistics services to clients across over 200 countries and regions worldwide. In the first quarter of 2025, United Parcel Service, Inc. (NYSE:UPS) reported revenue of $21.5 billion, compared with $21.7 billion in the same period last year. The revenue exceeded analysts' estimates by $496.7 million. The company reported consolidated operating profit of $1.7 billion in the first quarter, reflecting a 3.3% increase year-over-year and a 0.9% rise on an adjusted non-GAAP basis. In the US segment, revenue rose by 1.4%, supported by gains in air cargo and a 4.5% uptick in revenue per piece, which helped counterbalance lower volumes. The adjusted operating margin for the segment stood at 7.0%. United Parcel Service, Inc. (NYSE:UPS) generated $2.3 billion in operating cash flow, and its free cash flow amounted to $$1.48 billion. Due to this consistent cash generation, the company has been able to raise its payouts for 23 consecutive years. It offers a quarterly dividend of $1.64 per share and has a dividend yield of 6.84%, as of May 13. Overall, UPS ranks 4th on our list of the best dividend growth stocks with high yields. While we acknowledge the potential of UPS as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than UPS but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
