Investing in Student Housing in Switzerland

Published on October 23, 2025 and written by Cyril Jarnias

In Switzerland, a country renowned for its academic excellence and high quality of life, the demand for student housing continues to grow, thus attracting investor interest. With an ever-increasing student population and a stable real estate market, the appeal of student residences as an investment is strengthening. However, strict regulations, high construction costs, and increased competition pose challenges for those looking to embark on this promising venture. This article explores the opportunities and risks associated with this potentially lucrative investment and examines whether student residences in Switzerland represent a wise choice for savvy investors.

The Swiss Student Housing Market

Overview of the current Swiss student housing market

The Swiss student housing market is characterized by structurally higher demand than supply, particularly in major university cities. The average vacancy rate remains very low: in Zurich, it was 0.8% in 2025, down from an already low 1.1% in 2023. This imbalance leads to high competition for access to student housing and exerts upward pressure on rents.

In most Swiss cantons, the overall vacancy rate remains below the threshold considered “regulated” (1.5%), highlighting the persistent strain on the housing stock intended for students. The existing supply is insufficient to absorb the expected growth in the number of students until 2045.

Comparative Table – Supply and Demand by Region

City	Vacancy Rate (2025)	Available Supply	Student Demand
Zurich	0.8%	Insufficient	Strong
Geneva	Very Low	Very Insufficient	Strong
Lausanne	Benefits of investing in student real estate

Advantages of Investing in Swiss Student Real Estate

• Sustained Rental Demand: The large student population, particularly in major Swiss university cities like Lausanne, Geneva, and Zurich, guarantees constant demand for student housing. This continuous flow of domestic and international students promotes a low vacancy rate and optimal occupancy of properties.
• Stability of the Swiss Real Estate Market: The Swiss real estate market remains particularly resilient to global economic fluctuations. In 2025, an average rent increase of 1.9% nationally was observed, along with a rise in residential prices between 3% and 4%, underscoring the structural strength of the sector.
• Attractive Yields: Student residences typically offer a net yield between 3.5% and 5%, higher than that seen in other traditional residential real estate segments or in some neighboring markets. This profitability potential is explained by the rental pressure in the student segment and the flexibility of occupancy (annual or seasonal rental).
• Institutional Support and Modern University Infrastructures: Switzerland continuously invests in its academic infrastructure (world-renowned federal polytechnic universities) and in urban development to accommodate this growing population. Public policies aim to encourage the construction of student housing to address the recurring shortage observed each academic year.
• Wealth Diversification: Integrating properties dedicated to student housing allows investors to broaden their real estate portfolio with an asset less correlated to the general economic cycle while benefiting from the specific demographic dynamism of this segment.

Illustrative Example:

City	Estimated Student Population	Average Occupancy Rate	Net Rental Yield
Lausanne	>40,000	>97%	~4.2%
Geneva	>30,000	>96%	~4%
Zurich	>60,000	>98%	~3.8–4%

• Potential Tax Incentives: Some Swiss municipalities or cantons implement temporary tax relief or facilitate administrative procedures for investments explicitly targeting new or renovated student housing stock; these measures vary by area but locally contribute to improving the overall after-tax yield.

Summary List of Key Strengths:

• Stable demand linked to the continuous flow of students
• Swiss market protected against external volatility
• Higher profitability compared to other residential assets
• Incentive public policies to support this segment
• Some of the most high-performing university infrastructures in Europe
• Effective tool for diversifying real estate wealth

Key Takeaway

Investing in Swiss student real estate combines stability, attractive profitability, and rental security thanks to a dynamic academic environment supported by ambitious public policies. This type of asset stands out as a relevant solution both for securing and energizing a modern real estate portfolio.

Comparison Between University Residences and Erasmus Shared Apartments

Criteria	University Residences	Erasmus Shared Apartments
Average Monthly Cost	Between 500 and 900 CHF depending on the city and standard	Between 450 and 800 CHF per room, variable depending on supply
Cultural Experience	Mainly meeting other international students, sometimes more culturally homogeneous	Strong multicultural immersion, shared living with locals or other Europeans
Comfort	Single or shared rooms, adapted facilities (laundry, internet), but standardized comfort; little possibility for personalization	Highly variable comfort: depends on the chosen apartment; possibility to personalize one’s space
Proximity to University	Often located immediately near campuses	Can vary: some apartments are close to universities, others less so
Social / Networking Opportunities	Strong organized community life (student parties, university events), network centered on the local academic community	Intense social opportunities thanks to cultural plurality; rapid creation of a broader international and friendly network
Return on Investment for Owners	Stable rental yield ensured by institutional contracts with universities. High turnover but low rental vacancy. Regular maintenance required. Constant demand in major Swiss university cities.	Sometimes higher profitability if shared apartment is optimized (several rooms rented separately) but more complex management (high turnover, risk of unpaid rent). Strong attractiveness for foreign students seeking flexibility and a friendly experience.

Advantages of University Residences:

• Administrative security (institutional lease)
• Structured student life
• Campus proximity
• Facilitated maintenance

Disadvantages of University Residences:

• Less freedom in choosing housing
• Less immersion in local culture outside the university sphere
• Limited spots

Advantages of Erasmus Shared Apartments:

• Cost often lower than residences depending on local supply
• Intense daily cultural enrichment
• Flexibility in choosing the neighborhood or type of housing
• Mutual support among roommates for administrative procedures

Disadvantages of Erasmus Shared Apartments:

• Uneven quality/standard depending on available apartments
• Potential risk of conflicts or disagreements in shared living
• Possible distance from campus

Effect on Real Estate Return on Investment in Switzerland:

Both options benefit the particularly tight Swiss student rental market around major cities like Geneva, Lausanne, or Zurich. Residences ensure stable profitability thanks to continuous demand linked to annual student flows, while shared apartments often allow for a higher yield through “per-room” rental but require increased management.

For a foreign Erasmus student in Switzerland:

• The university residence offers administrative comfort and academic proximity.
• Shared apartment living allows for maximum linguistic/cultural immersion and a broader social network – ideal for fully discovering the host country.

The choice will therefore depend on personal priorities: security/comfort versus adventure/enriching human experience.