This article talks about why Swiss mixed-use projects are becoming so popular, how they fit in with ESG goals, and what investors can learn from Switzerland’s best examples.
Why Mixed Use Developments Are Growing Quickly in Switzerland
It’s not a coincidence that mixed-use districts are growing. It is a reaction to a number of structural factors that are changing Swiss cities.
1. Land that can be built on is limited, and population density is high
Zurich, Geneva, and Lausanne all face significant land shortages, strict zoning laws, and fast population growth. With mixed-use zones, these cities are aiming to:
- make land use more intense
- increase the number of homes available
- create pedestrian-friendly hubs
- lessen the stress of commuting
By planning districts to serve multiple functions, cities make the most of the limited space they have for growth.
2. Changing the way you work and live
Demand for real estate is changing because of remote work, flexible schedules, and city living. Increasingly, Swiss tenants and workers want:
- shorter commutes
- access to restaurants, culture and services
- living and working spaces that are connected
- good public spaces
Mixed-use districts naturally align with this wishlist with amenities close together so people can walk to them.
3. Rules for ESG and Sustainability
Mixed-use developments help Switzerland reach some of its important sustainability goals:
- less traffic on the roads
- groups of buildings that use less energy
- shared resources and infrastructure
- good public and green spaces
Investors who want their investments to be in line with environmental, social, and governance (ESG) standards are seeing mixed-use assets as less risky and more likely to last.
4. Cash flows that are stable and diversified for investors
A mixed-use portfolio generates income from tenants who rent space for:
- residential units
- office space
- retail space
- hospitality and cultural properties
This diversification protects against changes in any single sector and leads to more stable long-term returns.
Case Study 1: Europaallee, Zurich
A new standard for living in a city
Europaallee, which is right behind Zurich’s main train station, is now the city’s most important mixed-use district and one of Switzerland’s best examples of integrated urban regeneration. The district has been built in stages since 2013 and now has:
- apartments for rent
- office space for international companies
- campus facilities
- stores and restaurants
- parks and public squares
Why Europaallee Stands Out
The success of Europaallee comes from its balanced mix:
- Stable retail demand comes from a lot of foot traffic.
- Its location near the busiest transportation hub in the country helps offices grow.
- People with high incomes who want to live in a city find modern apartments appealing.
- Being close to cultural venues and universities makes the area more community-oriented.
The district is also built to meet high ESG standards, with buildings that use less energy and lots of pedestrian-only areas that make it easier to get around without a car.
Investors now see Europaallee as a model of a well-planned mixed-use neighborhood in a prime urban setting that brings long-term stability and better tenant retention.
Case Study 2: Quartier du Flon, Lausanne
From an industrial area to a hub of creativity and business
Quartier du Flon in Lausanne is the result of one of the most impressive changes to a city in Switzerland. It used to be an industrial area that no one cared about, but now it’s a lively center that combines:
- studios for artists
- stores
- nightlife and restaurants
- places to hold events
- modern offices
- lofts and apartments
Why Quartier du Flon Became a Regional Attraction
Flon works because it brings together culture, business, and community. Young professionals and students keep the area buzzing, and businesses are drawn to its modern buildings and central location.
Important success factors:
- strong sense of culture
- easy accessibility by bus and the Lausanne metro (L1/L2)
- things to do and events all year long
- a good mix of business and lifestyle tenants
ESG is also very important in Flon. The district has optimised energy systems, many pedestrian areas, and focuses more on urban regeneration than urban sprawl.
Lausanne’s experience shows that mixed-use neighborhoods can improve the identity of a whole city and boost its economy.
Case Study 3: Praille Acacias Vernets
A new urban skyline for Geneva
Stretching across the municipalities of Geneva, Carouge, and Lancy, the Praille–Acacias–Vernets (PAV) development is one of the most ambitious urban regeneration projects in Europe. In the heart of what was once a historic industrial and artisanal zone, a vast area of central Geneva is being completely transformed — with the goal of achieving carbon neutrality by 2050.
Over the coming years, nine brand-new neighborhoods will emerge, blending housing for all with workplaces, shops, and services designed to be reachable on foot or by soft mobility. Nature will be woven back into the urban fabric, and a dedicated urban logistics hub will help reduce resource consumption and support sustainable living. With everything close at hand, Praille–Acacias–Vernets is set to become one of the most desirable places to live, work, and invest in Greater Geneva.
Two Landmark Towers to Shape Tomorrow’s Geneva
A defining feature of the PAV project will be the construction of two iconic towers, recently approved by the Geneva Council of State. Rising 170 and 175 meters high, these towers will stand on land owned by the Praille–Acacias–Vernets Foundation, a key partner in the project’s planning process.
This milestone marks a major step forward in the transformation of the PAV district. Designed as inclusive spaces open to everyone, the towers will offer a mix of residential units and commercial activities. Beyond their practical function, they represent a bold evolution of Geneva’s skyline – signaling a contemporary city that is reinventing itself without urban sprawl or disruption to its heritage.
With these developments, Geneva joins Zurich, Basel, and Lausanne among Swiss cities embracing high-rise, sustainable architecture as part of their future.
How investors can make money over time with mixed-use developments
Mixed-use projects are good for cities, but they also have big financial benefits.
1. Different Ways to Make Money
Long-term income from residential tenants is stable. Retail and office tenants can bring in more money. Hospitality and culture bring in money at certain times of the year or for certain events.
This mix makes you more resilient during real estate cycles.
2. More Tenants and Higher Occupancy
Tenants stay longer in areas with amenities, easy access to public transportation, parks, and active neighborhoods. When the economy is bad, mixed-use properties often do better than single-function buildings.
3. More Potential for Appreciation
Integrated developments can change whole city blocks, which can make the value of nearby areas go up. Europaallee and Flon are two great examples of how well-planned design can result in new high-end areas.
4. ESG Compatibility and Less Risk from Regulations
Mixed-use developments meet environmental and social standards, which lowers the risk of future changes in the law and meets investors’ demand for sustainable portfolios.
5. Appealing to Institutional and International Capital
Swiss pension funds, insurance companies, and foreign investors are all interested in mixed-use Swiss properties because they offer:
- less concentration of risk
- strong long-term fundamentals
- modern building standards
- infrastructure for every season
This demand has helped raise properties in all three cities.
What Will Happen with Swiss Mixed Use Development
Over the next ten years, Zurich, Geneva, and Lausanne are likely to expand or speed up mixed-use zoning. The cities are moving toward mixed-use areas instead of separate residential or office zones because of population growth, the need for sustainability, and planning that focuses on transportation.
Investors should look forward to more chances that have to do with:
- mixed-use districts that are close to public transportation
- revitalization of industrial areas that aren’t being used enough
- buildings that have ESG certification
- residential towers that serve multiple purposes
- urban blocks that focus on the community
Mixed-use development will continue to be the main way for cities in Switzerland to grow in a way that is good for the environment and society.
