Investing in Real Estate in Ostermundigen: A Complete Guide to Understanding the Market and Its Prospects

Published on April 23, 2026 and written by Cyril Jarnias

Located at the gates of the federal capital, the municipality of Ostermundigen is attracting an increasing number of real estate investors. Its position in the first ring of the Bern agglomeration, its excellent public transport connections, its direct highway access, and its semi-rural setting at the foot of the Ostermundigenberg make it a very particular market: simultaneously residential, urban, and still relatively affordable on a Swiss scale.

This article offers a detailed dive into the local market, prices, rents, major urban projects, the fiscal and legal framework, as well as specific opportunities, including short-term furnished rentals.

Ostermundigen: A Dynamic Spillover Market at the Gates of Bern

Ostermundigen is part of the Bern-Mittelland region and belongs to the first circle of the Bern agglomeration. It thus benefits directly from the economic dynamism of the capital, while offering a quieter, greener residential environment. The neighborhoods are characterized by quiet streets, local schools like the Dennigkofen school complex, playgrounds, numerous pedestrian paths, and quick access to the Ostermundigenberg recreational area with forest and water.

This combination of mobility, tranquility, nature, and immediate proximity to the country’s political and administrative center explains why Ostermundigen is considered a sought-after residential location. The municipality also offers a comprehensive range of infrastructure: services, shops, daycare centers, schools, sports, and cultural activities.

A Rising but Still Competitive Real Estate Market on a Swiss Scale

Available data for 2025 and early 2026 shows a market in progression, with nuances depending on the property type and the period considered. Over four years, prices have increased by approximately 25%, reflecting strong tension between sustained demand and limited supply.

Price Levels: Where Does Ostermundigen Stand?

The various price per square meter surveys give a consistent picture despite some methodological differences between sources.

For apartments, January 2025 statistics indicate a median of approximately 7,303 CHF/m², with 60% of condominium apartments priced between 6,099 and 9,251 CHF/m². For houses, the median is close to 6,750 CHF/m², with a wide dispersion between 3,997 and 9,291 CHF/m² depending on location, condition, and typology.

Data by apartment size also shows strong variations, revealing a market where certain property categories are more sought-after.

A clear premium on 4 to 4.5 room apartments is visible, highly sought after by families and dual-income households, as well as on certain large, well-located houses. Conversely, larger houses in less central areas can show more modest average prices per m².

Price Trends: Short-Term Volatility, Long-Term Rise

Short-term variations can be significant, especially in a local market of modest size where a few atypical transactions influence the averages. For example, in the 12 months preceding January 2025, average prices per m² fell by approximately 14.1% for all properties, while longer-term data indicates a cumulative increase of over 25% in four years.

On a Swiss scale, observers (UBS, Wüest Partner, cantonal banks) anticipate for 2026 and 2027 residential price growth averaging between 2 and 3.5% per year, with a slight slowdown in pace linked to financial affordability. Ostermundigen, due to its proximity to Bern and its major infrastructure projects (tram, train station), is well positioned to be in the upper end of this range.

Prices by Street: Premium for Centrality and Key Axes

Certain streets stand out particularly, which directly interests an investor seeking to target the most promising sectors.

The Bernstrasse, the municipality’s main axis, is a focus of densification efforts. The strengthening of this artery as a structuring urban space, planned in zoning documents, is already reflected in prices with a notable premium per square meter.

Rents and Yields: What Levels for a Rental Investor?

For an investor, gross yield and rental liquidity are essential indicators. On this point, Ostermundigen positions itself rather well compared to the Swiss average, thanks to demand driven both by professionals working in Bern, families, and to a lesser extent, transient clientele (short-term rental).

Average Rents by Property Type

Data from May 2025 provides an order of magnitude for monthly rents for residential properties.

In parallel, the median rent per m² for apartments is around 300 CHF/m² per year, which corresponds to approximately 25 CHF/m² per month. This falls within the range of major Swiss agglomerations, with levels below Zurich or Geneva, but competitive for the Bern region.

Gross Yields: Between 3% and Over 5% Depending on Segment

By combining average purchase prices and rents, it’s possible to estimate typical gross yields, which generally fall in the 3 to 5% range.

– A concrete example of an 8-unit building in Ostermundigen showed a gross yield of 5.3% for a net rental income of approximately 103,000 CHF per year, before being sold.

– A mixed commercial/office building at Grubenstrasse 26 presents a gross yield of 5.65%, with 2,225 m² of rental space (including 714 m² of offices and 563 m² of storage) and over 20 parking spaces in a garage, plus two outdoor spaces.

Short-Term Rentals: A Niche but Dynamic Market

A specific report on short-term rentals (e.g., Airbnb) lists about twenty active listings in the Ostermundigen-Bern segment from July 2024 to June 2025. The market is still limited but growing, with local regulations currently considered “not very restrictive” for short-term stays.

Key indicators give an idea of the potential:

Seasonality is pronounced: the best months (notably August) combine occupancy around 68% and an ADR of around $125 to $140, while the quietest months (November, January) see revenue and occupancy drop to around 40–47%. The client profile is largely international (about 82% foreign visitors), with a high proportion of younger generations (post-2000).

For an investor, short-term rentals in Ostermundigen can constitute a complementary strategy, especially for properties well-connected to transport links to Bern, but it remains a niche market compared to Zurich, Geneva, or Alpine destinations. The regulatory question remains one to monitor over the long term.

Urban Projects and Planning: Why Densification Changes the Game for Investors

What distinguishes Ostermundigen from many suburban municipalities is the scale and coherence of its spatial development strategy. Under the banner “O’mundo”, the municipality has undertaken a comprehensive revision of its zoning plan and building regulations, based on a Spatial Development Strategy (Räumliche Entwicklungsstrategie, RES) and a “guide” called Raumentwicklungs-Wegweiser 2025.

The objective is clear: to allow moderate growth without expanding built-up areas, in accordance with federal land use planning law. In practice, this involves targeted densification within the existing fabric, on identified “central sites”, while preserving village-like peripheral neighborhoods and recreational zones.

Key Strategic Sectors

Several perimeters represent potential drivers of value appreciation for the coming years.

Bernstrasse Axis and Tell / Alpenrösli Sector

The Bernstrasse, the municipality’s main artery, is the subject of a major strengthening strategy. The idea is to densify the front building line to create a truly urban street space, with active ground floors, shops, and services. In this context, the “Tell” and “Alpenrösli” sectors are classified as “central sites” of absolute priority.

For an investor, owning a property or well-placed land along the Bernstrasse today means positive exposure to this redevelopment, with the likely increase in average values per m² — already high on this axis.

Train Station Hub and Bern-Ostermundigen Tram Project

The train station area (Bahnhofareal) is another key development. It combines several assets: public transport hub, proximity to the highway, inclusion in a cantonal economic development perimeter (ESP-D Ostermundigen Bahnhof), and in a mixed-use urbanization strategy managed with the Swiss Federal Railways (SBB Immobilien).

A feasibility study conducted between 2018 and 2020 on approximately 65,000 m² and involving 15 landowners proposes moderate densification around a new mobility hub including tram, bus, and trains, with a landmark building about 60 meters high as a counterpart to the already visible Bärentower in the landscape.

Several sub-sectors are advancing at different paces:

The total volume of added value to be captured is estimated at around 17 million CHF. Coupled with the Bern-Ostermundigen tram project and the complete remodeling of the station (adaptation to BehiG accessibility standards, new underpasses, raised platforms, redevelopment of the underpass under Bernstrasse), this hub will profoundly transform the real estate attractiveness of the neighborhood.

Swiss experience shows that a property located in immediate proximity to a new major transport facility often benefits from a premium of 5 to 10% during the project phase, then an additional 3 to 5% after commissioning. In Ostermundigen, work on the new stop and public transport hub is budgeted at nearly 64 million CHF total (29 for SBB accessibility, 35 for the PT hub), with full commissioning expected in the next decade. This is a strong signal for long-term investors.

Werkquartier, Civil Defense Center, Oberfeld and Other Sectors

On Obere Zollgasse, the “Werkquartier” aims to create a mixed neighborhood, with about 70% housing and 30% commercial space. The opening and renaturalization of the Lötschenbach stream, currently channeled, should significantly improve the quality of outdoor spaces.

In the Oberfeld sector, the municipality has also granted a 25% reduction in the ground lease fee rate to allow a public utility developer to build moderately priced housing, with neighborhood amenities (daycare, community rooms, small shops). This policy shows a clear orientation towards social mix and affordable housing stock, which may interest impact or institutional investors.

Impact of Planning on Investment

Ostermundigen’s Spatial Development Strategy, which came into force at the end of 2021, provides a relatively stable framework for investors. It identifies areas of major transformation, the “pockets of rest” where few changes are expected, and major infrastructure axes. This allows for strategic positioning:

– Buy in a central site or along an axis undergoing densification to bet on medium-term capital appreciation.

– Target preserved peripheral residential neighborhoods for a strategy of stable income with low volatility.

– Focus on redevelopment projects of former industrial or agricultural sites (renovated farms, former commercial halls) that could be converted into housing or mixed-use spaces.

Concrete examples illustrate this type of repositioning, like the renovated farm at Bühlweg 5 and 7, offering over 360 m² of space at a price of about 9,016 CHF/m², combining a main residence, secondary apartments, and already rented offices.

Financial and Regulatory Framework: What an Investor Needs to Know

Investing in Ostermundigen is not just about location and price. The Swiss environment is marked by strict regulation on foreign ownership (Lex Koller), prudent financing rules, and specific local taxation.

Who Can Buy in Ostermundigen?

The Lex Koller (LFAIE) regulates the acquisition of real estate by persons abroad. The main points are:

– Swiss citizens and foreigners holding a C permit are free to buy any type of property (primary residence, secondary residence, investment) without special authorization.

– EU/EFTA nationals residing in Switzerland enjoy the same rights.

– Non-resident non-Europeans can generally only acquire certain types of properties in designated tourist municipalities, which is not the case for Ostermundigen, which is primarily a residential market in a first-ring urban area.

Concretely, a foreign investor without a residence link to Switzerland will be able to acquire an office building or a mixed-use building with predominant commercial space in Ostermundigen much more easily than a purely rental residential building.

Financing: Equity Requirements and Amortization

Swiss banks apply prudent criteria, both for owner-occupied residences and for rental properties.

For an owner-occupied residence:

– Minimum down payment: 20% of the property value.

– At least 10% must come from “liquid” equity (savings, 3rd pillar), the rest can come from the 2nd pillar (pension fund), up to half of the down payment.

– The debt must be amortized to about 65% of the property value over a period of 15 years.

For an investment rental property:

– Minimum down payment: typically 25% of the price, sometimes more if the gross yield is low.

– Pension capital (2nd pillar) and 3a cannot be used, unless the owner lives in part of the building, in which case pro rata use is possible.

– Amortization to 65% must be achieved in 10 years, i.e., faster than for primary residences.

Mortgage Types and Market Conditions

The Swiss mortgage market is dominated by two main models:

– Fixed-rate mortgage, with a rate fixed for a determined period (often 2 to 10 years, sometimes up to 25 years).

– SARON-indexed mortgage, a variable rate based on the Swiss Average Rate Overnight, with the possibility to later convert to a fixed rate.

Mortgages at 80% of value (or 75% for an investment property) remain the norm. 100% mortgages or “interest only” loans are extremely rare. Banks also include, in their “affordability” analysis, theoretical maintenance costs and insurance premiums.

Even though effective rates have been historically low in recent years (1–2% for typical fixed rates), Swiss banks maintain this 5% stress test framework, which contributes to market solidity and limits the risk of a pronounced bubble, despite signs of overheating in some segments (notably tourist regions in Graubünden or downtown Zurich).

Local Taxation: A Context to Monitor

Ostermundigen applies a municipal tax coefficient (“Steueranlage”) of 1.69, slightly below the cantonal average of 1.709. For comparison, the city of Bern applies a coefficient of 1.54, but with higher fiscal power (revenue per capita about 30% above the cantonal average, while Ostermundigen is 12% below).

For an investor, this means that: investment decisions must be based on a thorough analysis of risks and opportunities.

– The level of income and wealth tax in Ostermundigen remains competitive on a cantonal scale.

– A certain risk of an increase in the municipal coefficient exists in the medium term if deficits persist.

– Rental income is taxed as income, but mortgage interest and a portion of maintenance and renovation costs are deductible, which mitigates the net tax burden.

Case Studies: Some Typical Properties in Ostermundigen

To better understand the market, it’s useful to look at examples of properties currently or recently offered for sale.

Example 1: Art Nouveau Semi-Detached House in Central Zone

A semi-detached house (Doppeleinfamilienhaus) in Jugendstil style, with about 125 m² of living space, was listed for sale at 890,000 CHF, an average price of 7,120 CHF/m². Located in a quiet but central neighborhood, in a protected zone, it enjoys a garden and definite architectural charm.

For an investor, this type of property can suit:

– either a resale strategy after high-end renovation (enhancing the Art Nouveau character),

– or a long-term rental for an affluent household, with a monthly rent possibly around 2,800–3,200 CHF depending on amenities.

Example 2: Farm with Development Potential

A farm with about 193 m² of net living space, on a plot of 2,317 m², was offered at 1.79 million CHF, about 6,393 CHF/m². It includes two separate apartments and a large disused agricultural part with strong transformation potential.

– transform the existing volume into several apartments,

– or develop a mixed-use project (housing + artisanal/professional activities),

– benefiting from relatively generous land in a region where buildable land is becoming scarce.

Example 3: Renovated Farm at Bühlweg 5/7

At Bühlweg 5 and 7, a renovated farm complex of 363.8 m² was offered for 3.28 million CHF (9,016 CHF/m²). The main building houses a 5.5-room apartment on three levels, while a former agricultural part has been converted into quality offices. A neighboring dwelling includes two small apartments. These secondary units and the offices are already rented.

This is a configuration of a rural-urban rental property, combining:

Example 4: Renovated Penthouse on Blankweg

A 4.5-room penthouse apartment of 85 m², located at Blankweg 10, was listed for 595,000 CHF, or 7,000 CHF/m². The original building dates from 1968, but a complete renovation was carried out in 1997 (insulation, roof, sanitary and electrical installations, triple glazing, balconies), supplemented by work in the apartment in 2019 and 2021.

This type of property illustrates the segment of renovated condominiums from the 1960s–1970s, which offer:

– a more affordable entry price than new construction,

– sometimes controlled charges thanks to work already done,

– a good compromise for an investor who wants to acquire a property to rent to couples or small families without embarking on a heavy transformation project.

Specific Opportunities: Social Housing, Mixed-Use, and Short Stays

Beyond specific cases, certain investment niches are emerging in Ostermundigen.

Affordable Housing and Social Structures

A notable project concerns a new building for affordable and supported housing, led by Impact Immobilien AG on a plot of about 10,732 m². The objective is to replace dilapidated buildings with a complex suited to the needs of a social institution, blending inclusive housing, moderately priced rentals, and services.

Impact Immobilien AG is a company specialized in developing buildings for social and public institutions, which it then leases long-term at affordable conditions. This type of setup interests:

Offices and Mixed-Use Spaces

The building at Grubenstrasse 26 illustrates the appeal of well-located commercial spaces:

– 2,225 m² of usable space (storage, offices),

– 1,660 m² of land,

– over 20 parking spaces underground, 2 outdoor spaces,

– gross yield of 5.65% guaranteed by existing leases,

– possibility to convert one floor into housing.

For an investor, this mixed-use typology offers:

– risk diversification between commercial and, potentially, residential tenants,

– potentially strong resale value in a context where quality spaces near transport nodes are becoming scarce,

– exposure to the densification dynamics around Bernstrasse and the train station.

Furnished and Short-Term Rentals

As mentioned earlier, short-term rentals remain a niche market, but the indicators hint at potential for higher revenues than traditional rentals on certain well-positioned properties (proximity to the station, tram, and Bern, superior amenities).

With ADRs around $100 to $140 and occupancy rates that can exceed 75% for the best operators, a well-managed apartment can generate, in high season, significantly higher monthly revenues than a traditional residential lease. In return, the investor must:

– manage or delegate operational management (cleaning, key handover, customer service),

– closely monitor the evolution of cantonal and municipal regulations on short-term rentals,

– absorb greater monthly revenue volatility.

How to Position Yourself: Investment Strategies in Ostermundigen

The context of Ostermundigen – growing market, major public transport projects, municipal policy of targeted densification – opens several strategic avenues.

A first approach is to target medium-sized apartments (3.5 to 4.5 rooms) in condominiums in well-served sectors, relying on rents around 1,700 to 2,400 CHF and prices per m² around 7,500 to 9,500 CHF. The goal here is a gross yield of 3 to 4%, complemented by capital appreciation upon resale linked to infrastructure improvements (tram, station, central neighborhood).

A third, more opportunistic approach bets on sites in transition (old farms, disused industrial land, abandoned agricultural volumes) to transform them into housing or mixed-use micro-neighborhoods, following in the wake of major operations like the Werkquartier or the Tell sector. It requires fine expertise in urban planning, construction law, and financial structuring, but can generate significant margins.

Finally, a last approach can be to position oneself on a commercial or mixed-use asset (like Grubenstrasse 26), benefiting both from strong demand for offices and services in the Bern-Mittelland perimeter and the relative freedom of purchase for foreigners on this type of property.

Conclusion: A Local Market to Watch Closely

Investing in real estate in Ostermundigen means betting on a municipality in full repositioning, at the junction between a quiet residential area and the natural extension of the Bern metropolitan area. The combination of strong accessibility (S-Bahn, future tram, highway), ambitious urban projects (Bernstrasse axis, station hub, Werkquartier, redevelopment of agricultural and industrial sites), and a market still more affordable than Zurich or Geneva creates an attractive playing field for investors.

The counterpart is a very demanding regulatory, fiscal, and banking environment: limitation of foreign access to purely residential property, high equity requirements, rapid amortization of rental mortgages, rigorous project selection by banks.

For a patient investor, with a good understanding of Swiss rules and ready to work with local partners (cantonal banks, notaries, architects, planners), Ostermundigen appears as a promising market, at the heart of a territory where major infrastructure and densification projects will continue to support property values in the medium and long term.

Cyril Jarnias

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.

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