Rental Yields: How to Find Out How Much Money You Can Make
The rental yield is a key number for determining how well a property is doing. It shows how much money the property makes in relation to its value. The average gross rental yield in Switzerland stands at 2.92% (2025, Q3). Previously, in Q1 2025, the rental yield was 2.96% (source : https://www.globalpropertyguide.com/europe/switzerland/rental-yields ).
Things You Should Think About:
- You can find out how much money you make from renting out a property each year by dividing the price you paid for it by the amount of rent you get. This approach is a straightforward way to figure out how much money you made.
- Net rental yield includes property taxes, upkeep, and management fees. This figure gives a better idea of how money flows.
- Yields depend on where you are. Prime areas like Zurich Kreis 1, Geneva Cité, or Lausanne Flon usually have lower yields but higher potential for capital appreciation.
- Investors should compare the yields on similar properties and make changes based on the type of property, the demand in the market, and the type of tenant.
Understanding Demand: Rates of Occupancy
The occupancy rate tells you how many of the units that are available are rented out. High occupancy means that there is a lot of demand and a steady stream of money coming in.
Important Considerations
- Residential Occupancy
There is a lot of demand in Zurich and Geneva because they often have low vacancy rates, below two percent. - Commercial Occupancy
Life sciences labs in Basel or office spaces in Zug attract long-term tenants, which means a steady flow of rental income. - Tenant Quality
Professional tenants or multinational companies lower the risk of not paying rent and having a vacant unit. It is important that properties are always rented so that property values and rental income predictions are correct.
Scoring the Location
Taking a Look at the Site
The location of a property has a big impact on how much it is worth and how much it will be worth in the future. When you rate a place, keep these things in mind:
- Connectivity
Renters are more likely to want a property that is close to public transportation, highways, and international airports. In Swiss cities, you can glide through Lausanne on its metro, hop onto Zurich’s efficient trams, ride Geneva’s sleek Léman Express trains (Coppet-Evian), or cruise across Bern in its quiet electric buses – all woven together into a smooth, reliable network that makes getting around feel effortless. - Amenities
Things to do in the neighborhood, like shops, restaurants, schools, and cultural institutions, make it a better place to live. - Urban Development Plans
The value of places that are being rebuilt or getting new infrastructure may go up in the future. - Market Comparables
Check the rental and sales prices of similar properties in the area to make sure your prices are fair.
Investors can use location scoring to find out how well a business is doing right now and how much it could grow in the future.
Renovation Potential
If upgrades are done correctly, properties that can be renovated or retrofitted can make more money. Look especially at:
- Energy Efficiency : New heating, insulation, and lighting can make a rental property worth more and lower the costs of running it.
- Modernization : Tenants are happier when kitchens, bathrooms, and common areas are updated.
- ESG Compliance : Adding solar panels or getting green certifications are two examples of eco-friendly renovations that make a property more appealing and keep its value in the future. When making plans that will add value, it’s important to weigh the costs of renovations against the possible profits from renting or selling.
ESG Measurements
Environmental, social, and governance (ESG) factors are becoming more and more important in Swiss real estate. Tenants, investors, and the government all want to rent or buy properties that meet ESG standards.
Key ESG Metrics
- Energy Performance
A building is energy efficient if it has Minergie and LEED certifications. - Sustainable Materials
Using building materials that are good for the environment. - Waste and Water Management
Systems that are well-designed save money and protect the environment. - Community Impact
Projects that improve public spaces or add social value make the area more sustainable in the long run.
Investors should include ESG metrics in their deal analysis to factor in compliance, tenant appeal, and possibly higher returns.
A Helpful Way to Look at Deals
- Check the rental yield and occupancy rates. Compare them to the market averages to see how steady your income will likely be.
- Give the location a score based on how easy it is to get to, what amenities are nearby, and how much room there is for urban growth.
- Find ways to improve the property that will raise its value or rent.
- Include ESG metrics. Check for compliance with Swiss laws, energy efficiency, and features that are good for the environment.
- Think about your exit strategy and how you can get your money back through SPVs, secondary markets, or crowd-investing platforms.
This structured approach helps investors make smart choices and find chances that offer a good balance of risk and return.
Conclusion
To understand Swiss real estate deals, you need to look at a number of related metrics. A good investment evaluation is based on rental yields, occupancy rates, location quality, renovation potential, and compliance with ESG standards. By using these criteria, investors can find the best properties in Zurich, Geneva, Lausanne, Basel, Bern, Zug, and other Swiss markets, get the most money back, and lower their risk.
Disciplined deal analysis makes sure that you get stable income, capital appreciation, and long-term property portfolios, whether you invest directly, through SPVs, or through crowd-investing platforms.
