Swiss Rental Yields by City: The 2026 Investor Guide

Short answer: Swiss apartments returned an average gross rental yield of 2.91% in Q1 2026, according to Global Property Guide's biannual survey. Big-city cantons sit below that: Zurich averages 2.51%, Geneva 2.61% and Vaud (Lausanne) 2.79%. After management, maintenance, insurance and vacancy, most landlords keep a net yield of roughly 1–2%.

This guide gives you the latest yields by city and canton, shows how to calculate gross yield, net yield and return on equity, and walks through a complete CHF example so you can test your own property.

Swiss Rental Yields by City and Canton (2026 Data)

The table below shows average gross yields for apartments, based on median asking rents compared with median asking prices on ImmoScout24 (Global Property Guide, Q1 2026, next update due September 2026). The range column shows the lowest and highest yield across apartment sizes.

Market (main city)	Average gross yield	Range by apartment size
Canton of Zurich (Zurich, Winterthur)	2.51%	2.34% – 2.84%
Canton of Geneva (Geneva)	2.61%	2.02% – 2.95%
Canton of Ticino (Lugano)	2.64%	2.11% – 3.25%
Canton of Vaud (Lausanne)	2.79%	2.21% – 3.43%
Canton of Aargau (Aarau, Baden)	2.86%	2.64% – 3.28%
Canton of Bern (Bern)	2.99%	2.74% – 3.57%
Canton of Fribourg (Fribourg)	3.34%	3.00% – 3.86%
Canton of Valais (Sion)	3.57%	3.13% – 4.14%
Switzerland average	2.91%

Source: Global Property Guide, Switzerland rental yields, Q1 2026. Gross yields, before any costs.

Prime properties in Basel, Geneva and Zurich

For top-quality rental apartments in the big cities, Wüest Partner's estimates are lower still: 2.35% in Basel, 2.15% in Geneva and 1.85% in Zurich as of Q1 2026 (cited in Global Property Guide's Swiss market analysis). Prime addresses buy stability and low vacancy, not income.

What about Zug?

Neither dataset covers Zug separately. Zug has some of the highest purchase prices in Switzerland, so expect yields at or below the Zurich level, and treat any listing that promises much more with suspicion. At 0.2% in June 2026, the canton's vacancy rate was the lowest in the country (federal housing statistics), which supports rents but not yields. Our Zug luxury rentals guide explains what drives demand there.

Three patterns in the data

• Smaller units yield more. In every canton surveyed, 1-bedroom apartments (and studios, where measured) yield more than 4+ bedroom apartments. In Zurich, 1-bedrooms average 2.84% against 2.37% for 4+ bedrooms.
• Cheaper cantons yield more. Valais and Fribourg lead because purchase prices fall faster than rents.
• Big-city yields are compressed but safe. Zurich, Geneva and Zug have some of the lowest vacancy rates in the country, so a lower yield comes with a lower risk of empty months.

The Three Yield Metrics Every Swiss Landlord Must Understand

Depending on which costs you include and whether you use a mortgage, different metrics show your investment from different angles. The three that matter are gross yield, net yield and return on equity.

In Switzerland, precise calculation matters because purchase prices are exceptionally high. Half a percentage point on a CHF 1 million property is CHF 5,000 a year, every year.

1. Gross Yield: The Starting Point

Gross Yield = Annual Rental Income ÷ Purchase Price × 100

Gross yield relates annual net rent (excluding the tenant's Nebenkosten, which you pass through) to the purchase price. It ignores transaction costs, maintenance, vacancy and financing. Use it to compare properties quickly, never to decide.

2. Net Yield: The Realistic Picture

Net Yield = (Annual Rental Income – Operating Costs) ÷ Purchase Price × 100

Typical Swiss operating costs for a landlord include:

• Property management: usually around 4–5% of rental income for a building, according to myky (formerly hausinfo). See our guide to property management costs in Switzerland for the full fee breakdown.
• Maintenance and renovation reserve: for condominiums, your share of the owners' association renewal fund plus your own unit's upkeep. We use 0.5–1% of the property value per year as an indicative planning figure.
• Insurance: building insurance (cantonal or private, depending on the canton) and landlord liability.
• Annual property tax (Liegenschaftssteuer): levied by several cantons, but not by Zurich.
• Vacancy: a void month between tenants is a sensible assumption even in tight markets.

3. Return on Equity: The Leverage Effect

Most Swiss investment properties are financed with a mortgage. Under the Swiss Bankers Association's minimum standards recognised by FINMA, buy-to-let properties require at least 25% equity, and the mortgage must be amortised to two-thirds of the lending value within ten years (UBS buy-to-let guide).

Cash-on-Cash Return = (Net Rental Income – Mortgage Interest) ÷ Equity × 100

Amortisation is not a cost (it builds your equity), but it is a real cash outflow, so always check cash flow after amortisation too.

Yield is only half the equation: three empty months cost a quarter of a year's rent. If you want a vetted, solvent tenant without a public listing, list your property privately with Offlist. Listing is free.

Worked Example: Gross vs Net Yield on a Zurich Apartment

Here is a full calculation for an illustrative CHF 1,000,000 apartment in the canton of Zurich. The gross yield of 2.8% sits close to the canton's 1-bedroom average in the table above. Cost figures are indicative planning assumptions, not market statistics.

Step 1 — Gross yield

• Monthly net rent: CHF 2,333 → annual rent CHF 28,000
• Gross yield: 28,000 ÷ 1,000,000 × 100 = 2.8%

Step 2 — Net yield

Annual cost	Assumption	CHF
Management	5% of rent	1,400
Maintenance and renewal fund	0.7% of value	7,000
Insurance	indicative	1,200
Vacancy	one month's rent	2,333
Annual property tax	none in Zurich	0
Total operating costs		11,933

• Net rental income: 28,000 – 11,933 = CHF 16,067
• Net yield: 16,067 ÷ 1,000,000 × 100 = 1.6%

Costs swallow over 40% of the gross rent, which is why net yield sits more than a full percentage point below gross.

Step 3 — Return on equity with a mortgage

• Equity (25%): CHF 250,000. Mortgage (75%): CHF 750,000 at an illustrative 1.6% fixed rate
• Mortgage interest: CHF 12,000 per year
• Cash-on-cash return: (16,067 – 12,000) ÷ 250,000 × 100 = 1.6%
• Amortisation to two-thirds within ten years: about CHF 8,300 per year
• Cash flow after amortisation: 4,067 – 8,300 = roughly CHF –4,200 per year

The lesson: in Zurich and Geneva, a leveraged apartment typically costs you cash every year until the amortisation phase ends. The investment case rests on low vacancy, rent indexation and long-term value growth, not on monthly income. If the numbers only work with optimistic assumptions, walk away.

Two further adjustments belong in a real calculation. First, add purchase costs (notary and land registry fees and, in most cantons, a property transfer tax, which Zurich, Zug and a few others do not levy) to the purchase price. Second, calculate on an after-tax basis: rental income is taxable, while mortgage interest and maintenance are deductible. Before you buy, it is worth getting a realistic property valuation rather than relying on the asking price.

How We Calculated These Yields (Methodology Note)

• City and canton yields come from Global Property Guide's Q1 2026 survey, which compares median monthly asking rents × 12 with median asking prices for apartments of each size on ImmoScout24. Asking prices and asking rents can differ from final transaction values, and data is reported at canton level.
• Prime yields for Basel, Geneva and Zurich are Wüest Partner estimates for top-quality rental apartments, as cited by Global Property Guide for Q1 2026.
• Worked example costs are our indicative assumptions for a well-maintained condominium. Your own figures depend on the building's age, the owners' association budget and your canton.
• All yields are gross unless stated otherwise and ignore tax, financing and purchase costs.

Tax Considerations: The Eigenmietwert Abolition and Investor Implications

On 28 September 2025, Swiss voters approved the abolition of the Eigenmietwert (imputed rental value) for owner-occupied homes, which is expected to take effect from the 2028 tax period. The reform mainly affects owner-occupiers, but it matters for investors:

• Lower ownership costs may move some households from renting into buying, slightly softening rental demand in some regions.
• Rental properties stay in the old system: landlords continue to declare rental income and to deduct mortgage interest and maintenance.
• Wealth tax still applies to the property's tax value, which is usually set below market value and varies considerably by canton.

Stress Testing Your Investment

Set rent at the top of the market, maintenance at the bottom and vacancy at zero, and every property looks attractive on paper. It won't match reality.

Calculate conservatively:

• Price rent realistically. Rents that are too high lead to longer vacancy, and a new tenant can challenge the initial rent in some circumstances (see our Swiss tenancy law guide for landlords).
• Budget generously for maintenance, especially in older buildings facing energy retrofits.
• Factor in vacancy of at least one month per tenant change.
• Stress-test interest rates. Swiss banks already check affordability at an imputed rate of around 5%. Make sure your investment survives a refinancing at well above today's rates.
• Compare letting strategies. Short-term letting can raise gross income but brings its own rules and costs. Our Airbnb vs long-term rental comparison covers the trade-offs.

If the property still delivers an acceptable yield under conservative assumptions, you have a solid investment.

---

Sources:

• Global Property Guide — Gross rental yields in Switzerland (Q1 2026)
• Global Property Guide — Switzerland residential property market analysis (Wüest Partner prime yields, Q1 2026)
• UBS — Buy to let in Switzerland (equity and amortisation rules)
• myky — Liegenschaftsverwaltung (management fee ranges)