Poor rental yields in Geneva and Zurich

Residential Valuation Specialist | October 14, 2019

Last Updated: Oct. 14, 2019
CANTON OF GENEVA - Apartments PRICE/SQ.M. (€) YIELD (p.a.) PRICE/SQ.FT. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Carouge (GE) 13,602 37.46 3.31% 1,264 3.48
Pregny-Chambésy 13,283 29.73 2.69% 1,234 2.76
Geneva 13,280 34.35 3.10% 1,234 3.19
Cologny 13,191 37.92 3.45% 1,225 3.52
Collonge-Bellerive 12,740 26.39 2.49% 1,184 2.45
Vandoeuvres 12,583 34.96 3.33% 1,169 3.25
Chêne-Bougeries 12,339 28.13 2.74% 1,146 2.61
Confignon 12,157 40.95 4.04% 1,129 3.80
Genthod 12,051 38.30 3.81% 1,120 3.56
Le Grand-Saconnex 11,299 26.47 2.81% 1,050 2.46
Anières 11,237 17.14 1.83% 1,044 1.59
CANTON OF ZURICH - Apartments
Meilen 21,312 25.03 1.41% 1,980 2.32
Erlenbach (ZH) 17,651 25.71 1.75% 1,640 2.39
Kilchberg (ZH) 17,534 30.71 2.10% 1,629 2.85
Rüschlikon 17,395 23.74 1.64% 1,616 2.21
Küsnacht (ZH) 14,262 26.01 2.19% 1,325 2.42
Uitikon 13,883 26.85 2.32% 1,290 2.49
Opfikon 12,231 25.40 2.49% 1,136 2.36
Horgen 11,842 24.57 2.49% 1,100 2.28
Zürich 10,832 34.73 3.85% 1,006 3.23
Herrliberg 10,763 26.54 2.96% 1,000 2.47
Männedorf 10,051 21.84 2.61% 934 2.03
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Real Advisor Definitions: Data FAQ See also: Update Schedule

If you are buying in Switzerland it is usually not the rental yield that interests you, because in the past Swiss rental returns been comparatively poor, and in any case buying by foreigners is significantly restricted. But as the global house price boom has gathered steam over the past 15 years, Swiss rental returns have stayed steady. Swiss rental returns are still classified by us as "poor". But rental returns in much of the world are now worse than they used to be, and Swiss returns are no longer particularly low.

Luxury apartments in Geneva command average square metre (sq. m.) prices between EUR 11,400 to EUR 13,500.

In our sample, a 120 sq. m. apartment in Geneva costs on average EUR 11,460 per sq. m.. A 120 sq. m. apartment can be rented for around EUR 3,827 per month. That means a yield of around 3.33%

In Zurich, the average price per sq. m. for a 120 sq. m. apartment is around EUR 12,050. A 120 sq. m. apartment can be rented for around EUR 3,950 per month. That means a rental yield of around 3.27%.

Round trip transaction costs are moderate on residential property in Switzerland. See our Swiss residential property transaction costs analysis and Transaction costs in Switzerland compared to other countries

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.