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|
|CANTON OF ZURICH - Apartments|
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