Published on and written by Cyril Jarnias
Ostermundigen is attracting increasing attention from real estate investors. Located at the gates of the federal city of Bern, this dense and well-connected municipality boasts several advantages: a very strong rental market, significant development pressure, major infrastructure projects, and a high quality of life. But to invest intelligently, one must understand in detail the structure of the local market, price trends, and the specific rules governing real estate investment in Switzerland.
This article provides a comprehensive analysis of the Ostermundigen real estate market, including recent price data, ongoing urban planning projects, and information on the applicable Swiss legal framework, particularly for foreign investors.
Ostermundigen: A Highly Urban Peripheral Market
With approximately 18,000 inhabitants and a density exceeding 3,000 inhabitants per km², Ostermundigen is no longer a bedroom community. The municipality is part of Bern’s first agglomeration ring, about a ten-minute drive or less than 25 minutes by public transport from downtown Bern.
Nearly 43% of Ostermundigen’s territory is built-up or dedicated to road infrastructure.
For an investor, this means two things: rental housing demand is fueled by commuters seeking a good compromise between price, quality of life, and quick access to Bern; and the long-term appreciation potential is strongly linked to the continuous improvement of transport infrastructure.
A Predominantly Rental Property Portfolio, Partly Aging
Ostermundigen presents a very different market profile from many more residential peripheral municipalities. The homeownership rate is low (about 14% of owner-occupied homes), while the rental stock accounts for nearly 86%. Residential buildings are often constructions from the 1960s to 1980s, with a significant share of 3-room apartments.
A large part of the portfolio is therefore already several decades old, which opens up interesting prospects for:
– energy and aesthetic renovations, with rent increases,
– replacement of old buildings with denser projects, in line with the qualitative densification strategy promoted by the municipality.
The low vacancy rate, historically around 0.7%, confirms the tight rental market. Combined with the demographic profile – a high proportion of 20-29 year olds, but also a projected increase in those over 65 – it signals diverse demand, ranging from small urban apartments to housing adapted for seniors.
High but Dynamic Prices per Square Meter
The Ostermundigen real estate market is at the top of the cantonal range, without reaching the peaks of the most sought-after neighborhoods in Bern or Zurich. The latest consolidated data indicates, in February 2026, an average price of approximately CHF 8,023 per square meter, all categories combined.
However, differences between apartments and houses are observed, and a wide dispersion depending on property size and precise location.
Price Levels by Property Type
The table below summarizes the order of magnitude of average prices per square meter in Ostermundigen, according to February 2026 data:
| Property Type | Average Price per m² (CHF) | Common Range (60% of properties) |
|---|---|---|
| Overall Market | 8,023 | – |
| Apartments | 8,315 | 6,857 – 8,769 |
| Houses | 7,781 | 5,748 – 9,057 |
For apartments, the majority of the portfolio is therefore between approximately 6,900 and 8,800 CHF/m², with 20% of properties above this level, particularly in the most sought-after locations or new projects.
Floor price per square meter for the 20% cheapest villas or single-family homes in Switzerland.
Price by Number of Rooms: Where Are the Best Opportunities?
The price per square meter structure varies significantly according to housing size. In Ostermundigen, certain categories – notably 4.5-room units – command proportionally higher prices than larger apartments. Here are the observed average values:
| Segmentation | Rooms | Average Price per m² (CHF) |
|---|---|---|
| Houses | 4–4.5 rooms | 8,848 |
| 5–5.5 rooms | 7,299 | |
| 6–6.5 rooms | 5,336 | |
| > 7 rooms | 9,332 | |
| Apartments | 2–2.5 rooms | 6,995 |
| 3–3.5 rooms | 7,036 | |
| 4–4.5 rooms | 9,390 | |
| 5–5.5 rooms | 7,858 | |
| > 6 rooms | 8,858 |
For an investor, these differences translate into interesting trade-offs:
The price per square meter varies significantly depending on the housing typology. 4 to 4.5-room apartments, highly sought after by families, are significantly more expensive per m² compared to 3–3.5-room or 5–5.5-room units, and involve a high entry ticket. 2–2.5-room units are relatively cheaper per m² and constitute an attractive segment to target young professionals and couples without children. Finally, large houses with more than 7 rooms reach very high prices per m² but cater to a limited audience and are more relevant for a wealth-building strategy than for pure rental yield.
Price by Street: Bernstrasse as a Showcase
Micro-location plays a key role. Some emblematic streets in Ostermundigen display levels above the municipal average, due to their visibility, accessibility, or densification potential.
| Street | Average Price per m² (CHF) |
|---|---|
| Bernstrasse | 8,985 |
| Oberdorfstrasse | 8,509 |
| Rütiweg | 6,706 |
Bernstrasse, the municipality’s main thoroughfare, embodies both traffic, densification projects, and the future Bern–Ostermundigen tram line. A noticeable price premium is observed there compared to quieter residential streets like Rütiweg, while offering significant appreciation potential thanks to future developments (new transport hub, densification, mixed-use poles).
Purchase, Rent: Price Levels and Potential Returns
To assess the appeal of an investment in Ostermundigen, one must naturally cross-reference purchase prices with average rents. The 2025 data for rents provides a useful benchmark.
Average Purchase Prices by Housing Size
The following average levels were recorded for housing sales (houses and apartments) in 2025:
| Property Type | Size | Average Price (CHF) |
|---|---|---|
| Houses | 4 rooms | 942,000 |
| 5 rooms | 1,130,000 | |
| 6 rooms | 1,310,000 – 1,320,000 | |
| 7 rooms | 1,520,000 | |
| 8 rooms | 1,650,000 – 1,690,000 | |
| Apartments | Studio | 534,000 |
| 2 rooms | 593,000 | |
| 3 rooms | 714,000 | |
| 4 rooms | 897,000 | |
| 5 rooms | 1,200,000 |
This table illustrates a key point of the Swiss market: even small spaces are very expensive, particularly studios and 2-room apartments, which remain accessible in absolute value but often display a very high price per square meter.
Average Monthly Rents: Basis for Calculating Your Yield
On the rental side, the average rents recorded in May 2025 were as follows:
| Property Type | Size | Average Monthly Rent (CHF) |
|---|---|---|
| Houses | 4 rooms | 2,100 |
| 5 rooms | 2,700 – 2,800 | |
| 6 rooms | 2,900 – 3,100 | |
| 7 rooms | 3,000 – 3,500 | |
| 8 rooms | 3,000 – 4,200 | |
| Apartments | Studio | ≈ 921 |
| 2 rooms | 1,400 | |
| 3 rooms | 1,700 | |
| 4 rooms | 2,200 | |
| 5 rooms | 3,000 |
By combining these rents with the price grid, one can obtain gross yield estimates. Let’s take a few simple examples.
How to Calculate Rental Yield in Ostermundigen
The gross rental yield is calculated by dividing the annual rent by the acquisition price, then multiplying by 100. The formula is as follows:
> Gross Yield (%) = (Annual Rent / Purchase Price) × 100
The net yield, more realistic, deducts expenses (maintenance, administration, insurance, property taxes, vacancy periods, etc.) from the annual rent before dividing by the price.
> Net Yield (%) = (Annual Rent – Annual Expenses) / Purchase Price × 100
Example 1: 3-Room Apartment for Rent
Assume the purchase of a 3-room apartment in Ostermundigen at the average price of CHF 714,000, for a monthly rent of CHF 1,700.
– Annual rent: 1,700 × 12 = CHF 20,400
– Gross yield: 20,400 / 714,000 × 100 ≈ 2.86%
If we estimate annual expenses (COA fees, maintenance, insurance, minor repairs, vacancy) at CHF 5,000:
– Net income: 20,400 – 5,000 = CHF 15,400
– Net yield: 15,400 / 714,000 × 100 ≈ 2.16%
The typical gross yield for rental investments in Swiss municipalities in the urban arc ranges between 2.5% and 4%.
Example 2: 2-Room Apartment
Take a 2-room apartment purchased for CHF 593,000, rented for CHF 1,400 per month:
– Annual rent: 16,800 CHF
– Gross yield: 16,800 / 593,000 × 100 ≈ 2.83%
If annual expenses reach CHF 4,000:
– Net income: 12,800 CHF
– Net yield: 12,800 / 593,000 × 100 ≈ 2.16%
We find a very similar order of magnitude to the previous example. In a market like Ostermundigen, the real difference is therefore made on:
– the ability to buy below the market average through negotiation or a property in need of renovation,
– the possibility of repositioning the property (renovations, energy improvements, division or expansion of floor area) to optimize rent.
How to Interpret These Yields in the Swiss Context
Studies on the Swiss residential market indicate national price increases of around 3 to 4% per year recently, with a moderating trend but a foundation of growth driven by the structural housing shortage (vacancy around 1% nationally). In this context:
In a well-located municipality like Ostermundigen, a rental investment can offer a net yield of approximately 2 to 3%. This profitability is usually accompanied by long-term capital appreciation, estimated at an average real rate of 1.5% to 3% per year over a ten-year period. The cumulative effect of these two components (rents and capital growth) can thus lead to a total increase in property value of around 15% to 28% over the decade, according to national projections.
In other words, Ostermundigen is more suited to medium-to-long-term buy & hold strategies, combining moderate but stable yield and capital gains supported by densification and major infrastructure projects, rather than strategies purely focused on high yield.
Contrasting but Generally Rising Price Dynamics
Market data shows sometimes volatile short-term movements, but an upward trend over several years. During certain periods in 2025, corrections of around –14% over twelve months were observed in the average price per square meter, before a marked recovery, with an increase of nearly 17% year-on-year in the fall.
More recently, around February 2026, the figures indicate:
Overview of recent market trends based on available data.
An average increase of 10.3% in the price per m² over twelve months.
An annual increase of approximately 5.6% for apartments.
An increase of around 15.8% for houses over one year, despite declines over 3 and 6 months.
These movements reflect a market sensitive to mortgage rate cycles and the timing of major projects (tram, station, densification), but set on an upward trajectory, driven by:
– sustained demographic growth (approximately +15% between 2010 and 2019, and still +0.8% per year on average between 2020 and 2023),
– a housing supply limited by years of under-construction,
– structural demand linked to the immediate proximity to Bern.
For an investor, these price fluctuations can create more attractive entry windows, particularly during short-term consolidation phases.
Major Urban Projects: A Key Lever for Appreciation
One of the most determining aspects for the future of Ostermundigen’s real estate market is the vast municipal planning revision, named «O’mundo». It is based on a clear strategy: concentrate urbanization on internal «hotspots», densify qualitatively around transport axes, while preserving greener peripheral neighborhoods as “quiet zones”.
Targeted Densification Along Bernstrasse
The redevelopment of the Bernstrasse axis is one of the pillars of this strategy. Objective: transform the main road artery into a true urban avenue, with:
– a densified first built-up strip, mixing housing, commerce, and services,
– urban nodes at key intersections, acting as neighborhood centers,
– maximum use of visibility and traffic to create buildings with high commercial and residential value.
Development plans foresee the emergence of building blocks, sometimes taller, and the transformation of central sites like the «Tell/Alpenrösli» area or the station area into dense urban neighborhoods.
Key Projects: Tell, Werkquartier, Station and Tram
Several strategic sites concentrate the efforts of the municipality and private investors.
1. Tell / Alpenrösli (Z1)
This central sector, located along Bernstrasse, is the subject of an ambitious redevelopment project. Existing buildings, including the communal hall “Tell-Saal”, are to give way to denser constructions. The challenges are multiple:
This project rests on four essential pillars: prior soil decontamination, creation of a new mixed-use urban heart combining housing, commerce, and administrative spaces, replacement and modernization of the communal hall, and the establishment of surface rights to ensure sustainable income for the municipality.
The expected revenue from the development levy (land value increase) on this sector alone is estimated at around CHF 8.6 million, with surface right rents of around CHF 270,000 per year from the end of the decade. For a private investor, entering this perimeter, for example through co-ownership, means betting on a flagship sector of Ostermundigen’s new centrality.
2. Werkquartier (Obere Zollgasse)
On the former Intersport site, a new neighborhood is to be created, with about 70% housing and 30% commercial activities. The goal is to create:
– a dense but convivial urban fabric,
– a strong neighborhood identity,
– quality public spaces,
– and a significant ecological gesture: the daylighting and renaturalization of the Lötschenbach stream.
Housing produced in this mixed context generally offers good prospects both for rental and resale, especially for contemporary typologies (3.5–4.5 rooms) suited to active households.
3. Station Area (Z3)
The station area is arguably the most structuring project for the real estate market. It is situated at the intersection of:
The Bern–Ostermundigen tram project and a major railway modernization site, including the Wankdorf Süd–Ostermundigen separation and the expansion of the transport hub.
Cantonal economic development focal point
Planned are:
– high-rise buildings, including a skyscraper facing the “Bärentower”,
– a very high density of offices, services, and commerce, combined with housing,
– a completely redesigned intermodal hub (train–tram–bus),
– a requalified public space, with a park along Poststrasse in the future.
The development levies expected for the entire station area are on the order of CHF 17 million. For an investor, this sector offers both a perspective of yield on office or commercial space and significant appreciation potential for housing benefiting from exceptional transport connections.
Bern–Ostermundigen Tram: A “Game Changer” for Mobility and Values
The tram project linking downtown Bern to Ostermundigen, which is part of a long history of planning and votes, is in the preparatory phase. The new line, approximately 4.45 kilometers long, will replace bus line 10 between Bern Station and the Oberfeld neighborhood.
This new infrastructure will have several effects:
The tramway offers increased capacity, carrying more than double the passengers of a bus to relieve a saturated line (over 8 million passengers/year). It ensures better reliability through a lower frequency but higher capacity, allowing for more stable operation. Accessibility is improved with level-access stops, designed in collaboration with associations. Finally, proximity to a new tram can generate real estate appreciation, with a premium of 5 to 15% on property prices near stops, as observed in many Swiss and European contexts.
On the Bernstrasse axis in particular, the tram and the redevelopment of the station’s road underpass will have a clear multiplying effect on land values.
Station Modernization: Universal Accessibility and Regional Hub
Parallel to the tram, Ostermundigen station will be transformed in depth. The planned works over about six years include:
– raising and widening the platforms, slightly shifted south to provide level access to trains,
– rebuilding the pedestrian underpass under the tracks, relocated and brought up to accessibility standards with ramps,
– widening and lowering the current underpass under Bernstrasse, to integrate tram and bus stops, plus direct access to platforms via elevators and stairs.
These investments, estimated at nearly CHF 29 million for station accessibility and approximately CHF 35 million for the new transport hub, are fully funded by the Confederation, the canton, and the municipality. They are part of a national mobility strategy and reinforce Ostermundigen’s status as a major node in the Bern agglomeration.
For real estate, this means that properties located within a few hundred meters of the station position themselves as natural candidates for significant revaluation, particularly rental or office buildings likely to benefit from this new centrality.
Rental Market: High Tension, Varied Tenant Profiles
With a very low vacancy rate, a high proportion of renting households, and a growing population, the rental market in Ostermundigen is structurally supportive.
Who Rents in Ostermundigen?
Several segments coexist:
– young adults (20–29 years old), often mobile, attracted by the good transit service and proximity to Bern,
– middle-income households, often foreign (share of foreign residents around 32%), who prefer a lower rent than in Bern while keeping quick access to the center,
– an aging population, as projections anticipate an increase of 35–40% in those over 65 and 60–70% in those over 80 by the mid-2020s.
This opens up opportunities:
The project focuses on three distinct market segments: well-located small apartments (studios, 2–2.5 rooms) for singles and couples without children; quality family apartments of 3.5–4.5 rooms for active families; and specific housing (accessible, adapted, and close to services) designed to meet the needs of seniors.
Data also shows that 4–4.5 room units are particularly sought after, which is reflected in the high prices per square meter.
Example of Yield on a Rental Building
For more institutional investors or wealthy individuals, commercial or mixed-use buildings can offer more sustained yields. An example cited in Ostermundigen is a commercial building on Grubenstrasse, with a net usable area of 2,225 m² (offices, storage, parking), showing a gross yield of about 5.65% thanks to leases in place.
This type of product illustrates that: quality and innovation are essential in the current market.
– well-located commercial buildings can generate higher yields than individual apartments,
– partial conversion (e.g., one floor into housing) is sometimes feasible, adding an additional revaluation option.
Swiss Context: Stability, Moderate Growth, Strict Regulation
Investing in Ostermundigen also means operating within the general framework of the Swiss real estate market.
A Tight but Controlled National Market
The main features of the Swiss residential market are:
– price growth of about 3–4% per year recently, with a moderating trend,
– a chronic housing shortage, illustrated by a vacancy rate around 1%,
– a limited volume of new construction (approximately 40,000–45,000 housing units delivered per year nationally),
– historically low mortgage rates for several years, with a Swiss National Bank monetary policy attentive to stability.
Projections for the coming years anticipate an average price increase of about 3% per year, with variations by region. Agglomerations well-served by public transport, like Bern and its surroundings, are seen as areas of solid growth.
Lex Koller: What Foreigners Need to Know
For foreign investors, the federal law known as “Lex Koller” remains the reference framework. It strongly limits the acquisition of residential property by persons not domiciled in Switzerland. Specifically:
Non-residents and nationals from outside the EU/EFTA generally cannot purchase housing for rental purposes, except in specific tourist zones. The purchase of purely commercial property (offices, retail) is generally permitted without restriction. European nationals residing in Switzerland with a B or C permit can freely acquire a primary residence in Ostermundigen and, under certain conditions, properties for rent.
Residential real estate investment in Ostermundigen is therefore primarily open to:
– Swiss citizens and residents (B or C permit holders),
– foreign investors via structures or for purely commercial assets (without residential use).
Before any project, it is essential to verify one’s own situation (nationality, permit, tax status) with a notary or specialized lawyer.
Taxation: Points to Note
In Switzerland, real estate taxation operates at several levels (Confederation, canton, municipality) and is based on various taxes:
The acquisition and holding of real estate in Switzerland are subject to several taxes: a transfer tax (1 to 3% of the sale price depending on the canton, sometimes zero as in Zurich), an annual tax on imputed rental value (fictitious income attributed to the owner-occupant), and a wealth tax (calculated on the tax value, often lower than the market price). Resale may trigger a real estate gains tax, often progressive and decreasing with the holding period. Finally, rental income received is subject to income tax, with the possibility to deduct mortgage interest and many maintenance expenses.
In the canton of Bern, where Ostermundigen is located, the municipal tax rate (Steuerfuss) is close to the cantonal average, placing the municipality in the medium range in terms of tax pressure. This helps keep Ostermundigen attractive for households and investors, compared to significantly more taxed municipalities.
Tools and Services to Evaluate an Investment in Ostermundigen
To refine an investment strategy, several types of resources can be mobilized.
Online Estimation Tools
Platforms like Neho or Lookmove offer free automated valuations of properties, based on:
– analysis of thousands of comparable listings,
– recent transactions,
– mathematical models incorporating area, location, condition, and features.
The estimation process occurs in three steps: data entry, algorithmic analysis, and instant result, providing an initial price range. A detailed analysis validated by an expert is available by email in less than 24 hours. These estimates serve as a basis for discussion, to be supplemented by a more detailed expert assessment considering the property’s specificities.
Local Agencies and Experts
In Ostermundigen, players like Riesen + Partner Property AG, long present in the Bern market, offer:
– professional valuation services,
– support for sales and purchases,
– legal and tax advice tailored to cantonal and municipal law.
For a foreign investor or a Swiss investor not based in the region, relying on a local partner allows for a better understanding of determining but less visible aspects, such as:
– the quality level of existing co-ownerships,
– the densification potential of a plot,
– risks of nuisance (traffic, noise, future projects),
– local market practices regarding rents, guarantees, and tenant selection.
Which Strategies to Prioritize for Investing in Ostermundigen?
By combining all these elements, several investment approaches emerge.
1. Long-Term Wealth Strategy Near the Tram and Station
This strategy involves targeting properties:
– located near future tram stops or the modernized station,
– offering good revaluation potential through infrastructure and densification,
– even if the initial rental yield is modest (2–3% net).
The heart of Ostermundigen, around Bernstrasse and the station, as well as future neighborhoods like Werkquartier, clearly fit this logic. The holding horizon is 10 years or more, with the idea of strongly benefiting from long-term value appreciation.
2. Yield Strategy on Well-Located Small Apartments
Studios and 2-room apartments, although expensive per square meter, can be interesting:
To maximize the profitability of a rental investment, prioritize properties acquired below market price (such as properties needing refreshment or from distressed sales). Ensure they are located in buildings with moderate charges and no major foreseeable repairs in the short term. Finally, target a stable tenant base, such as young professionals or seniors.
A studio purchased 10–15% below the neighborhood average and upgraded can significantly improve the gross yield while limiting exposure to vacancy.
3. Repositioning Strategy for Buildings from the 60s–80s
Given the weight of the portfolio built between 1961 and 1980, a relevant strategy is to:
The example involves acquiring an aging but well-located rental building, then planning a complete renovation including insulation, window replacement, elevator installation, and reconfiguration of interior surfaces. This energy and functional renovation allows repositioning the building in a more qualitative market segment, which permits a significant rent revaluation.
The market tension and scarcity of supply suggest that reasonable rent increases, justified by the works, remain absorbable by local demand.
4. Commercial or Mixed-Use Strategy for Foreign Investors
For non-residents subject to the restrictions of the Lex Koller, the acquisition of purely commercial or mixed-use properties (with a non-residential predominance) is often the most accessible route. Ostermundigen, with:
– its activity poles (industrial, logistics, tertiary zones),
– its immediate proximity to Bern,
– and its major projects around the station,
offers fertile ground for this type of investment, provided one masters the particularities of the Swiss commercial property market (lease terms, indexation, charges, etc.).
Conclusion: Ostermundigen, A Peripheral Market with a City Center in the Making
Investing in real estate in Ostermundigen is betting on a municipality in full transformation, at the crossroads of several major trends:
– increasing urbanization of the Bern agglomeration,
– qualitative densification around transport axes,
– massive modernization of mobility infrastructure (tram, station, transport hub),
– structural shortage of housing in the region,
– aging of a significant part of the existing real estate portfolio.
Rental yields are moderate by international standards but typical for Switzerland, benefiting from great political, legal, and economic stability. The market’s main asset is the potential for medium- and long-term capital appreciation, particularly for well-located properties near Bernstrasse and the station.
For an investor, the key will be to:
– understand well the O’mundo planning projects and their perimeters,
– anticipate the impact of the Bern–Ostermundigen tram and the station modernization,
– select properties benefiting from this dynamic rather than being subject to it,
– and navigate a specific regulatory and fiscal framework, particularly for foreigners.
With strong local support and a long-term vision, Ostermundigen can establish itself as one of the most interesting markets in the Bern periphery for a reasoned and structured real estate investment.
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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.
