According to the new edition of the “Switzerland Annual Property Index” by Wüest Partner and MSCI, the total return of Swiss investment properties has improved from 4.2 per cent in 2024 to 5.4 per cent in 2025. Following the interest rate-related decline in the overall return to 1.4 per cent in 2023, largely driven by the capital decline of -1.8 per cent, Swiss investment properties have now benefited from capital growth of 1.0 percent (2024) and 2.2 percent (2025) for the second consecutive year. However, the overall performance in 2025 was slightly below the long-term average of 5.7 per cent over the last two decades. In contrast, the capital growth in 2025 was above the long-term average of 1.5 per cent since the start of the index in 2002.

The performance comparison according to usage types shows different results for the various sectors. Leading in 2025 were multi-family houses with a total return of 6.2 per cent, whereby the capital growth amounted to 2.8 per cent. Second place was taken by retail properties with a total return of 4.9 per cent, followed by industrial & logistics properties (4.8 per cent) and hotels (4.7 per cent). While industrial properties lost slightly in value (-0.4 per cent), retail and hotel properties increased in value by 1.6 and 1.0 per cent respectively. Once again, office properties occupied last place with a total return of 4.3 per cent in 2025, whereby the capital growth at 0.7 per cent was stronger than in the previous year and the net cash flow yield could be increased to 3.5 per cent. A comparison of the returns over the last decade shows that the residential sector (average 2016-25: 6.1 per cent) achieved the best overall return due to the capital growth. In contrast, the hotel sector generated the lowest overall return of 2.3 per cent on average between 2016-25, but was able to improve significantly in the last two years 2024/25 thanks to positive capital growth. In the long-term comparison, the industrial sector also stands out, generating the highest net cash flow yield of 5.3 per cent over the past ten years.

Switzerland Annual Property Index: Total Return 2002-2025

How will Swiss investment properties develop in the future? 

In times of geopolitical tensions, economic uncertainties and fears of inflation, Swiss real estate as a pure play Swiss franc investment can benefit from its safe haven status, as well as potential inflation linkage of rents. A look at the performance from 2002-25 for direct property investments, as illustrated in the chart above, shows no negative return for Swiss property investments during the global financial crisis (2007/08), the euro debt crisis (from 2009) or the global pandemic (from 2020). Only the change in interest rates initiated by the Swiss National Bank (SNB) at the end of 2022 led to a marginal value decline of -1.8 per cent in 2023. Provided that the SNB can keep its key interest rates stable, as in our base scenario, we continue to expect solid value growth this year. Apart from interest rate developments, medium-term price and value are also likely to be influenced by upcoming votes at federal level (e.g. the “No 10 million Switzerland” initiative) and cantonal level (e.g. Zurich housing protection initiative). The outcome of these votes and ongoing consultations (e.g. Lex Koller) could influence the price structure or the risk premiums demanded by investors in the transaction market. We would like to refer you to our article published at the beginning of February 2026 for possible longer-term impacts of megatrends (including digitisation and effects of “Artificial Intelligence”) on the real estate sector: Swiss real estate – impact of megatrends on market and investors