Lausanne: A Leading Example of Urban Change
The cityscape of Lausanne is changing in a big way. Historically industrial areas and areas that weren’t being used to their full potential are being turned into lively neighborhoods that mix homes, businesses, and cultural spaces.
Over the past decade, Lausanne has undergone a remarkable urban transformation, turning the once-industrial Flon district into a vibrant hub of shops, restaurants, and cultural spaces. The city’s “Métamorphose” masterplan is reshaping neighborhoods, including a new eco-district in Plaines-du-Loup designed to accommodate around 11’000 residents with jobs, green spaces, and excellent public transport connections. Transport infrastructure has also improved, highlighted by the 1.7 km LEB railway tunnel beneath Avenue d’Échallens, which enhances safety and frees up surface space for pedestrians and cyclists. Adding to the city’s modern appeal, the Stade de la Tuilière, a 12’500-seat stadium, opened in 2020, giving FC Lausanne-Sport a contemporary home and energizing the surrounding area. Together, these projects showcase Lausanne as a forward-thinking, dynamic city that blends sustainable living, modern infrastructure, and cultural vibrancy.
Main Drivers
- Population Growth
The number of people living in Lausanne is still growing, which means there is more demand for homes and mixed-use properties. - Economic Activity
The city has universities, international sports organizations, and strong tech and service sectors, which makes the rental market strong. - Transportation Infrastructure
Modern public transportation and connections to Geneva and Zurich make urban redevelopment projects more appealing. - Students in Lausanne
Finding an apartment as a student in Lausanne is tough. With thousands of students coming to UNIL and nearby EPFL, demand far outstrips supply, and rents, especially near the city center are high. Short-term rentals are rare, landlords often prefer long-term tenants, and paperwork like proof of income or residency can be tricky for international students. Many end up compromising on location, size, or amenities, making the hunt stressful and competitive.
A Case Study in Redevelopment: Quartier du Flon
The Flon area is a good example of how Lausanne is working to improve its districts. Indeed, the Quartier du Flon in Lausanne is a lively, modern district at the heart of the city, known for its mix of cultural, commercial, and residential spaces. Once an industrial and warehouse area, it has been transformed over the past two decades into a trendy hub with restaurants, bars, shops, art galleries, and offices, attracting young professionals, students, and creative communities. The population is diverse and dynamic, with a high proportion of expatriates and young adults, reflecting its cosmopolitan and urban character. Flon is also a key transport and pedestrian zone, seamlessly connected to Lausanne’s metro and bus networks, and its blend of historic architecture with cutting-edge design makes it a symbol of the city’s ongoing urban renewal and cultural vibrancy.
It’s a busy city center with:
- Lofts and apartments for rent
- Workspaces and shared office spaces
- Stores, entertainment, and cultural activities
- Streets and public squares that are easy to walk on
Why Invest:
- Mixed-use developments bring in money from a variety of sources, such as residential rent, office leases, and commercial tenants. These diversified income streams lower risk for investors.
- Buildings in Flon that meet ESG and sustainability standards include energy-efficient upgrades, green roofs, and eco-friendly materials. These buildings also meet the needs of tenants and comply with regulations.
- Urban regeneration projects in central Lausanne have shown that property values can rise quickly over time, thanks to high demand and limited land availability.
Possibilities in Vaud
The canton of Vaud has many opportunities for investors who want to work on projects that add value in a sustainable way:
- Redevelopment of Industrial Zones
Old factories or warehouses that aren’t being fully utilized can be turned into modern homes or mixed-use spaces. - Renovating Historic Buildings
Adding energy-efficient systems to older buildings can help them attract tenants and meet ESG standards. - Mixed-Use Developments
Adding residential, office, and retail units to a property makes it easier to rent out and keeps income stable over time.
Investors can get involved directly or through SPVs and crowd-investing platforms. Doing so lowers the amount of money they need to invest while still giving them access to high-quality assets.
ESG and Value-Add Plans
Sustainability is very important for regeneration projects to work in Vaud:
Energy-Efficient Upgrades
Adding new heating, insulation, and lighting to an existing building lowers operating costs and makes it more appealing.
Green Certifications
Minergie and LEED certifications make a property more appealing to tenants and increase its resale value in the future. Sustainable urban design makes communities more lively and livable by adding green spaces, pedestrian paths, and public amenities.
These strategies not only help with ESG compliance, but they also increase rental income and capital growth over the long term.
What Makes Vaud and Lausanne So Attractive
Lausanne is a highly connected and desirable place to live because it is close to Lake Geneva, Geneva’s international hub, and Zurich via high-speed trains.
Demand for Urban Living is Growing
The rising population and limited housing supply in central areas drive up the demand for well-located apartments and mixed-use properties.
Supportive Regulatory Environment
Urban planning rules in Vaud support redevelopment while making sure that sustainability standards are met.
Diversification Potential
Putting money into urban regeneration projects gives you access to both residential and commercial income streams in one asset or SPV structure.
Final Thoughts
Real estate investors can find great opportunities for urban regeneration in Vaud, especially in Lausanne. Projects like Quartier du Flon show that redevelopment, sustainability, and mixed-use integration can lead to high rental income, long-term value growth, and growth that is in line with ESG goals.
Investors who use SPVs, crowd-investing platforms, and sustainable retrofit strategies can take part in high-quality urban projects without having to buy whole buildings or take on the full cost or risk of doing so. Vaud is a great place for people who want to exposure to Switzerland’s changing real estate market because the canton has a lot of urban transformation, ESG integration, and investment.
