Published on and written by Cyril Jarnias
In Switzerland’s constantly evolving real estate market, the eternal dilemma between the profitability of properties in Airbnb mode and that of long-term rentals captures the attention of owners and investors. Each city presents unique opportunities and specific challenges that influence the profitability of these real estate investments.
Comparative Study of Swiss Cities
This study examines key Swiss cities, such as Zurich, Geneva, and Lausanne, to highlight the significant differences in profitability offered by each method.
Key Profitability Factors
In a context where return on investment is essential, understanding how tourist season fluctuations and local regulations affect these two options is crucial for maximizing investors’ potential gains.
Introduction to Swiss Rental Profitability Study
The Swiss real estate market in 2025 is characterized by continuously rising prices, supported particularly by the Swiss National Bank’s lowering of the key interest rate and strong demand for both purchasing and renting. Residential rents increased by up to 6.4% between 2023 and 2024, with a historically low vacancy rate of only 1.6%, illustrating the tension in the rental market. This dynamic is especially pronounced in major cities like Zurich, Geneva, and Lausanne, where supply remains limited in the face of sustained population growth and significant immigration.
In this tense context, two major trends are emerging in the rental sector: short-term tourist rentals (notably via platforms like Airbnb) and traditional long-term residential rentals.
| Criterion | Short-term Rental (Airbnb) | Long-term Rental |
| Stay Duration | A few days to a few weeks | Several months or years |
| Target Audience | Tourists, business travelers | Local residents or expatriates |
| Specific Needs | Flexibility, full amenities | Housing stability |
| Occupancy Rate | Variable depending on seasonality | More stable throughout the year |
| Maintenance Costs | Higher (frequent cleaning) | Moderate |
| Administrative Management | High tenant turnover | Less frequent |
| Regulation | Often strict/localized | National/cantonal framework |
Tourist rentals primarily target travelers seeking flexibility and central locations. However, they involve higher operational costs: frequent cleaning, linen renewal, and increased logistical management. Furthermore, several Swiss cities heavily regulate these activities to protect the traditional rental market.
Conversely, long-term rentals meet the stability needs of permanent residents or expatriate workers. They generally guarantee regular income but may be subject to stricter frameworks regarding rent increases.
The main economic parameters to consider in a comparative study are:
- Average annual occupancy rate
- Expected monthly/annual gross income
- Fixed costs (condominium/municipal charges)
- Variable costs (routine maintenance/cleaning)
- Applicable local taxation
- Regulatory evolution specific to municipalities
Demand for these two types of rental remains high in major Swiss urban centers: Zurich attracts a diverse international clientele; Geneva benefits from UN dynamism; Lausanne profits from both tourism and a strong student base.
The main objective of this comparative study will therefore be to objectively analyze which strategy – short-term or long-term rental – currently offers the best balance between potential net profitability and associated risks in Switzerland. The analysis will cover both financial and operational aspects while integrating recent developments in local legislative frameworks likely to impact each economic model.
Good to Know:
The study of rental profitability in Switzerland takes place in a real estate context marked by strong rental demand, both tourist and residential. Short-term rentals, like Airbnb, attract tourists seeking flexibility and local experiences, while long-term rentals target residents looking for stability and security. Key parameters, such as variable occupancy rates, recurring maintenance costs, and local regulation, are crucial for assessing profitability. Cities like Zurich, Geneva, and Lausanne show strong demand for both types of rental, with preferences evolving according to seasons and local events. The objective of the article’s comparative study is to analyze these dynamics to determine which option proves more profitable, taking into account specific trends and regional requirements.
Yield Analysis: Airbnb vs. Long-term Rental
| City | Average Monthly Airbnb Income (CHF) | Average Monthly Long-term Rental Income (CHF) | Gross Airbnb Yield (%) | Gross Long-term Rental Yield (%) |
| Zurich | 4,800 | 3,200 | ~8.5–10 | ~4.5–6 |
| Geneva | 4,500 | 3,100 | ~8–9 | ~4.2–5.5 |
| Lucerne | 3,600 | 2,400 | ~7.5 | ~4 |
Key Points on Profitability
- Airbnb rentals generate on average between 30 and 50% additional income compared to long-term leases in major Swiss cities.
- Observed gross yields for Airbnb typically range between 7% and over 10%, versus about half for traditional rental.
- These results come with increased income volatility as well as higher operational management requirements.
Factors Influencing Yields
- Seasonality: Tourist demand varies strongly by period; summer and winter are often more lucrative in Zurich and Lucerne due to business or nature tourism.
- Occupancy Rate: Higher in long-term rental (close to full capacity), whereas in short-term it frequently fluctuates between 60% and over 80%, depending on neighborhood attractiveness or the period.
- Ancillary Fees:
- Frequent cleaning fees
- Platforms taking up to 20–30% of revenue
- Furniture to be renewed regularly
- Increased administrative burdens related to traveler check-ins/outs
Local Regulations
Some cities like Geneva drastically limit the number of nights allowed for a primary residence or impose systematic reporting to authorities. In Zurich, the framework is a bit less restrictive but is rapidly evolving towards more regulation. These constraints can artificially limit potential yield.
Current Economic Impact
The post-pandemic Swiss economic context remains marked by the return of international tourism to major urban centers. However, inflation in energy costs and tightening mortgage credit may lead some owners to favor increased rental security through a classic lease.
In an uncertain period for European residential real estate markets, Airbnb offers superior financial flexibility but also exposes to greater volatility in net cash flows… Stability remains the major asset of the long-term lease.
Potential Advantages for Investors/Owners
Comparative List:
- Airbnb Rental:
- Higher net potential if occupancy rate is high
- Suited for well-located/touristic properties
- Flexibility for occasional personal use
- Long-term Rental:
- Stable income year-round
- Streamlined management; less time-consuming
- Strong legal protection regarding unpaid rent/extended occupancy
Case Studies:
Zurich: Central neighborhoods near the station/hotels show an annual occupancy rate around 75%, generating up to CHF 58,000/year (before expenses), whereas the same property rented annually brings in about CHF 38,000.
Geneva: For some studios near the UN/Lake Geneva, seasonal gains via Airbnb exceed CHF 54,000/year compared to CHF 37,200 with a traditional lease—but subject to strict municipal quotas.
Lucerne: Lesser seasonality linked to nature tourism allows maintaining a steady occupancy rate >70%, while requiring increased vigilance on price variations during off-peak periods.
Good to Know:
In Switzerland, the yield analysis between Airbnb and long-term rentals reveals significant disparities depending on the city and local conditions. In Zurich, average monthly income for an Airbnb accommodation can be up to 50% higher than traditional rentals, mainly due to strong tourist demand and professional events. However, these yields are heavily influenced by seasonality and occupancy rates, with a notable drop in the off-season. In Geneva, despite the rigidity of local regulations, Airbnb rentals retain a financial advantage, but involve higher maintenance costs and more complex administration. Lucerne, on the other hand, presents an intermediate situation, where high occupancy rates compensate for costs spread throughout the year, resulting in comparable total income but with less flexibility than in Zurich or Geneva. In the current economic context, marked by uncertainties, fluctuating regulations and a trend towards shorter stays could favor Airbnb for its flexibility, although the more stable commitments of long-term leases ensure a certain predictability for investors.
Key Takeaway:
The superior profitability offered by Airbnb comes at a high price in terms of increased operational efforts, growing regulatory exposure, and especially—volatility in the face of external economic shocks. The reassuring stability of the long-term lease still appeals to many in this changing context despite its lower yield.
City Comparison: What Differences in Profitability?
| City | Average Airbnb Income (monthly, CHF) | Airbnb Occupancy Rate (%) | Average Airbnb Price/Night (CHF) | Long-term Rental Income (monthly, CHF) | Long-term Rental Occupancy Rate (%) | Average Long-term Rental Price/Month (CHF) |
| Zurich | 4,300 | 68–74 | 145 | 2,600–3,000 | >95 | 2,700 |
| Geneva | 4,800 | 65–72 | 160 | 2,800–3,200 | >95 | 3,000 |
| Basel | 3,900 | ~70 | ~120 | ~2,200 | >95 | ~2,200 |
| Lausanne | 4,100 | 66–71 | 135 | ~2,400 | >95 | ~2,400 |
| Bern | 3,500 | 65–70 | 110 | 1,950 | >95 | 1,950 |
Profitability Differences
- Short-term rentals via Airbnb generate on average between +40% and +70% additional gross monthly income compared to long-term rental in all major Swiss cities.
- The occupancy rate for seasonal rentals varies strongly by period:
- High tourist season: up to +85%, rates can double or triple.
- Low season: occupancy sometimes below 50%.
“Legislative frameworks are rapidly tightening in all major Swiss cities.”
Outlook shows a continuation of regulatory tightening aimed at limiting the rapid expansion of furnished tourist accommodations to preserve the residential housing stock. This could reduce the current gap between gross Airbnb yield and classic rental. However, as long as tourist demand remains strong—especially during major events—short-term will remain attractive for those ready to manage a more complex activity.
For a potential owner:
- Net financial advantage if good management AND strict compliance with local rules;
- Growing risk linked to regulatory developments;
- Major importance given to precise choice of neighborhood/client segment to maintain a high level of occupancy despite increasing restrictions.
Good to Know:
In Zurich, Airbnb rentals generate on average 40% more than long-term rentals, despite similar occupancy rates around 70%, but are subject to strict regulations limiting rental duration. In Geneva, although Airbnb yields significantly more per night, bookings are more seasonal, notably due to international events. In Basel, income from Airbnb is boosted by trade fairs, but these benefits are offset by higher cleaning costs. In Lausanne, the profitability gap between Airbnb and long-term rental is less marked, with more stable annual occupancy rates, but owners must navigate an evolving regulatory framework. Bern, on the other hand, shows moderate differences, with monthly long-term rental rates often competitive against Airbnb offers. In terms of future trends, the rise of remote work could homogenize demand, and growing local regulations encourage increased caution for potential investors.
Tips for Choosing the Right Rental Type in Switzerland
Essential Criteria to Consider When Choosing Between Airbnb and Long-term Rental in Switzerland:
- Planned stay duration
- Initial cost and ancillary fees
- Contractual flexibility
- Furnished or unfurnished
- Rental yield potential
- Local regulation (limitations, taxes)
- Lifestyle-related preferences (services, independence)
- Specific situation according to city (Zurich, Geneva…)
| Criterion | Airbnb Rental | Long-term Rental |
|---|---|---|
| Initial Costs | Deposit often limited or nonexistent; higher maintenance fees; regular cleaning; high platform commissions | Deposit generally 1 to 3 months’ rent; agency fees possible but less frequent than in some neighboring countries |
| Flexibility | Very high flexibility: booking from a few nights to several months, cancellation possible according to platform conditions | Classic commitments of 6–12 months or more, termination subject to strict legal notice |
| Rental Yield Potential | High yield during high tourist season or major events; occupancy rate very variable off-season; income sometimes triple compared to classic rental during summer in dynamic areas; strong dependence on tourist conditions and customer reviews. Some owners alternate with medium/long-term rentals to stabilize their income during off-peak periods. | More stable but capped yield: regular rents year-round but generally lower than short-term potential income over the long term. Less subject to seasonal fluctuations. Less risky regarding vacancies if lease is well structured. |
| Local Regulation | Strict rules in some Swiss cities: maximum authorized duration often limited (for example 90 days/year in cities like Geneva), potential obligation to change the property’s designation and payment of a tourist tax; increased control in recent years especially in city centers or popular neighborhoods; evolving legislation by canton/municipality; attention to the lessor’s tax status. | Clear regulatory framework with rights and duties defined by the Swiss Code of Obligations and specific cantonal regulations; increased tenant protection once the lease is signed. Not subject to as strong annual limitations as for short-term rental. |
- For a temporary or uncertain stay, a furnished Airbnb apartment offers logistical simplicity without heavy commitment.
- Newly arrived expatriates often favor a short/furnished rental before switching to a classic lease.
- Established families rather opt for the stability offered by a long-term unfurnished contract.
Key Points Influencing the Decision:
- Planned duration ( “Airbnb has transformed our way of traveling… but it’s not always the best choice anymore… In Switzerland… rentals via Airbnb are regulated by strict rules…”
- “Maximum authorized duration for subletting is often limited to 90 days per calendar year…”
- “…some cantons impose a tourist tax or even a change of designation…”
Specific Considerations Zurich & Geneva
In these two cities where the real estate market is particularly tight:
- High demand + structural scarcity = high rents for long-term;
- Local authorities actively control temporary rentals – annual quotas applied;
- Higher profitability possible via short-term during major events/international congresses;
- But increased regulatory constraints reduce this potential: strict limitation of the maximum annual/day number permitted in Airbnb-type subletting.
In urban centers like Zurich or Geneva,
an investment oriented towards short-term can generate up to three times more than a standard rental during tourist peaks,
but it also exposes more to administrative risk (taxation/taxes/regulations) as well as vacancy off-season.
Financial stability remains better guaranteed with a classic long-term rental despite a natural ceiling on gross profitability.
Good to Know:
When selecting between an Airbnb and a long-term rental in Switzerland, several factors must be taken into account. Initial costs can be higher for Airbnb due to platform fees and necessary furnishing, while a long-term rental often requires financial guarantees like a security deposit. In terms of flexibility, Airbnb offers greater adaptability for short stays, ideal if the plan is to stay for a few days to a few months only. However, for those wishing for a prolonged stay, a classic rental can offer valuable stability. The rental yield potential is generally higher for an Airbnb in dynamic cities like Zurich and Geneva, where tourist demand is strong, but this is subject to strict regulations that can limit temporary rental possibilities. Personal preferences, such as the need for a furnished space or the choice of a permanent home, also influence the decision. In Geneva, a long-term rental may prove more profitable due to strong demand for residential housing, while Zurich may offer better profitability for an Airbnb, driven by the constant influx of international visitors.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
