Published on and written by Cyril Jarnias
Wedged between the federal capital and the banks of the Aare, investing in real estate in Ittigen is nothing like the flashy hotspot that makes the cover of luxury magazines. Yet, the numbers tell a different story: chronic rental tension, new positive-energy neighborhoods, exemplary conversion projects, and a relatively lenient tax regime in the canton of Bern. For a patient investor seeking robust yield over bling, the municipality is clearly a file to be opened seriously.
A Micro-Market in a Highly Favorable Macro Environment
To understand the logic of an investment in Ittigen, one must first place the municipality within the Swiss landscape. The Swiss real estate market remains one of the most stable in the world. Residential prices have more than doubled in twenty years, without a major crash, with annual increases currently projected around 2 to 4% nationally by 2026. National indices (IMPI, UBS indices, Wüest Partner) converge: after an acceleration phase, the rise continues but at a more measured pace, resembling maturity more than overheating.
Within this global framework, the canton of Bern stands out with more accessible price levels than Zurich or Geneva, but with a positive dynamic. Recent data for the canton indicates:
| Indicator (canton of Bern) | Indicative Value |
|---|---|
| Average apartment price (per m²) | ~7,264 CHF |
| Average house price (per m²) | ~6,719 CHF |
| Average annual rent (per m²) | ~247 CHF |
| Annual increase for apartments (Bern region, Q3 2025) | +6.0% |
| Annual increase for houses (Bern region, Q3 2025) | +3.1% |
| Average gross rental yield (canton) | ~2.98% |
The Bern region therefore shows significant price progression, especially for apartments, while remaining below the excesses observed in certain tourist hotspots or in the city of Zurich. This is the context that serves as the backdrop for investing in real estate in Ittigen.
Ittigen: Small Municipality, True Centrality
Ittigen belongs to the Bern-Mittelland district and is officially classified as part of the “urban central area” in the cantonal master plan. With 4.2 km² of area and about 11,600 inhabitants (11,628 permanent residents in 2023), the municipality has a density of nearly 2,770 inhabitants per km². In other words: it is no longer a suburban village, but a dense urban fabric, integrated into the capital’s agglomeration.
The long-term demographic trend is interesting. The population exploded between 1950 and 1990, before stabilizing and then rising slightly again in recent years:
| Year | Population |
|---|---|
| 1950 | 2,543 |
| 1970 | 6,530 |
| 1990 | 11,411 |
| 2000 | 10,969 |
| 2015 | 11,390 |
| 2020 | 11,435 |
| 2023 | 11,656 |
Since the early 1990s, growth has been weak (+3%), well below the average of the Bern agglomeration (+11% excluding the city of Bern) and the canton (+13%). This relative calm may seem unglamorous, but it is typical of a “fundamental” market: not very speculative, but stable, with a loyal population base and continuous migratory flows.
The municipality features a balanced demographic structure (48.9% men, 51.1% women) with an average age of 43.9 years. The share of foreigners (27-28.5%) is close to the Swiss average. The senior rate (23%, above the national average) is comparable to affluent municipalities in the region. For an investor, this combination of an aging but integrated population, a high proportion of Swiss and foreign households, and a good age mix, indicates a diverse residential fabric and rental demand spread across several segments.
Rental Tension: The Real Strength of Ittigen’s Market
The key indicator for any residential investor is the vacancy rate. And on this point, Ittigen sends a very clear signal: we are in a shortage situation.
Over the last 20 years, the vacant housing rate has mostly remained at 0.5% or less, at the level of the city of Bern. In 2023, it is still at 0.77%, still below the Swiss average (about 1.2%) and slightly below the average of the Bern agglomeration (0.8% excluding the city). The few vacant apartments are mostly older 3 and 4-room apartments, which reflects a gap between the available supply and current demand, which is more oriented towards more modern properties.
It can be summarized as follows:
| Area | Recent Vacancy Rate |
|---|---|
| Ittigen | ~0.77% |
| Bern Agglomeration (excluding city) | ~0.8% |
| National Average | ~1.2% |
For a landlord-owner, a rate below 1% means in practice a very high probability of renting quickly, provided the property is in line with the market (condition, rent, size). At the Swiss level, studies show that a market becomes clearly “favorable to the owner” when vacancy falls towards 1%: that is exactly Ittigen’s situation.
The municipality records about 80 arrivals and 80 departures per 1,000 inhabitants per year, explaining high residential mobility and sustained rental demand.
Price per Square Meter: A “Reasonably Expensive” Market
Specific data for Ittigen shows a market that is already high on the Bern scale, but still significantly lower than Swiss hyper-centers. For 2025, the indicated average price for apartments is about 6,964 CHF/m², placing the municipality at the 1,116th rank of the most expensive localities in Switzerland.
| Indicator (Ittigen, apartments) | 2025 Value |
|---|---|
| Average price per m² | 6,964 CHF |
| Annual variation | +7.59% |
| National rank (price) | 1,116th |
The increase of nearly 7.6% over one year is higher than general forecasts for Switzerland (around 3%), indicating that the local market is currently in a phase of catch-up or accelerated valuation, probably linked to recent urban projects and the scarcity of quality new supply.
The example of a 50 m² apartment at about 421,000 CHF and another 90 m² one around 620,000 CHF illustrates that the price per square meter is higher for small units. This is explained by strong demand for compact housing and the spreading of fixed costs over fewer square meters. For an investor, this differential represents an opportunity: small apartments often offer better gross yields, but require more careful management of tenant turnover.
Price simulations for a quick sale or on the contrary an optimized one are telling. For example, for a 70 m² unit:
| Sale Scenario (70 m²) | Indicative Price |
|---|---|
| Quick sale | ~482,606 CHF |
| Sale with more time (optimized) | ~589,851 CHF |
This simple gap of about 100,000 CHF reminds us how much the exit strategy (timing, property quality, marketing) is decisive for the overall performance of an investment in Ittigen, as elsewhere.
Yields: Between Typical Swiss Yield and Potential Capital Appreciation
At the cantonal level, gross residential rental yields are around 2.98% for the canton of Bern. They vary by size:
| Apartment Type (canton of Bern) | Average Gross Yield |
|---|---|
| 1 room | ~3.43% |
| 2 rooms | ~2.81% |
| 3 rooms</td | ~2.81% |
| 4 rooms and more | ~2.86% |
Ittigen, with its prices a bit below Zurich but in the upper Bern average, should be in this order of magnitude, perhaps slightly below for highly sought-after properties (new, labeled, desirable neighborhood), slightly above for older buildings or smart conversions.
In Switzerland, gross real estate yields are generally around 3%. After deducting charges, maintenance, and taxes, net yields are more between 1.5% and 2%. The investor’s main gain comes from long-term capital appreciation.
– Securing rental income flows thanks to very low vacancy.
– Capital appreciation over the long term (2 to 4% annual price increase projected nationally, recently more in Ittigen).
Investing in real estate in Ittigen therefore often means accepting a modest current yield, in exchange for a high probability of progressive capital gain and a very limited vacancy risk.
A Strong Local Economy Driving Housing Demand
To judge the robustness of a real estate market, one must look at the real economy. In Ittigen, the number of people employed in the territory jumped by 41% between 2005 and 2021, much more than the Bern agglomeration (+15%), the canton (+12%), or Switzerland (+24%). Today, there are over 13,000 jobs for 11,600 inhabitants, making it a municipality that clearly imports labor.
In 2008, Ittigen had about 8,090 jobs in the tertiary sector, largely dominating other sectors.
For rental demand, this means:
– Many commuters looking for housing well connected to public transport.
– A stable working population, with an average income of about 62,000 CHF.
– A low unemployment rate (2.61% in 2011), typical of Swiss areas with high service intensity.
Another significant element: taxation. The municipal tax coefficient (Steuerfuss) is 113, in a canton where the average is around 170.9. Ittigen thus ranks 7th among the most fiscally attractive municipalities in the canton of Bern. This positioning reinforces residential appeal and limits the risk of taxpayer flight, thus supporting demand for properties both to buy and to rent.
Contrasted Demographics… But Rich in Investment Niches
Demographically, investing in real estate in Ittigen requires understanding two simultaneous realities.
On one hand, the municipality is aging. The proportion of people over 64 went from 9% in 1990 to 15% in 2000, then 23% today. This level is above the Swiss average and comparable to some municipalities in Bern’s affluent belt. This opens the way to suitable products:
– Accessible apartments (elevators, ground floors, protected housing).
– Low-energy, easy-to-maintain buildings.
– Renovation projects aimed at adapting older apartment typologies to the needs of independent seniors.
The municipality of Ittigen is characterized by high residential mobility and a diversity of households (many single-person households, families, shared apartments). Between 2011 and 2022, it recorded, with Ostermundigen and Zollikofen, the most dynamic inflows and outflows in the agglomeration (about 80 entries and 80 exits per 1,000 inhabitants annually). A significant share of these movements occurs with the city of Bern and neighboring municipalities, highlighting Ittigen’s role as a territory of exchange within the region.
In short: ideal profile for a diversified rental portfolio, ranging from 1.5-room apartments for young professionals or students to 4.5–5.5-room units for families, including properties adapted for seniors.
Major Projects Redrawing the Local Market
One of the major assets of investing in real estate in Ittigen are the ongoing urban projects. They don’t just add square meters: they introduce high energy standards, strengthen landscape appeal, and contribute to repositioning the municipality as a Bernese laboratory for sustainable urban planning.
Aarerain: A PlusEnergy Neighborhood Changing Worblaufen’s Image
In the Worblaufen sector, on the banks of the Aare, the Aarerain project marks a real turning point. Led by Losinger Marazzi, in partnership with the pension fund CPV/CAP and the municipality, it was presented as the first “PlusEnergy neighborhood” in the Bern region.
The program: 189 housing units spread across buildings of six to eight floors, for about 400 residents, with a daycare, workshops, and a neighborhood square. More than half of the plot remains unbuilt and natural, respecting and enhancing the riverside landscape. Technically, the goal is to produce more energy than is consumed annually:
Discover the key elements of this sustainable and innovative development project.
Facades and roofs equipped with photovoltaic panels, including green-blue colored modules for better architectural integration.
Heating provided by geothermal probes, regenerated in summer via floor cooling of the apartments.
Almost car-free neighborhood, with facilitated access to the municipality’s new nautical and leisure base.
For an investor, even without directly owning a lot in Aarerain, the impact is real: this type of project revalues the entire sector, creates a new residential centrality with high energy standards, and raises tenant expectations for the rest of the housing stock. It helps justify the price increases seen in recent years.
Talgut Ost: Densifying the Center Without Suffocating It
Right in the center, the Talgut Ost project aims to modernize the residential offering and optimally exploit a very central location, combining housing and services/commercial spaces. It is an operation of qualitative densification rather than sprawl.
The interest for the investor is obvious: new surfaces created in a hyper-center are rare and, if the project is carried out with a good typological mix, they will be among the most sought-after properties, especially by households prioritizing immediate proximity to shops, schools, and transport.
Worblentalstrasse 68: The Exemplary Conversion
At Worblentalstrasse 68, a former office building from the 1990s, occupied by the Federal Office for the Environment until 2026, is about to be transformed into about 135 housing units, with an adjacent public park.
The project ticks several very current boxes:
The project
– Maximum reuse of the existing structure (on-site reuse of slab elements, windows, technical floors).
– “Circularity” principle to reduce embodied energy and CO₂ emissions compared to demolition-reconstruction.
– Moderate extension (adding one floor, creating townhouses in the attic).
– Significant reduction in car parking spaces (44 spaces for about 135 apartments), but 435 bicycle spaces.
– Heating and hot water mainly via groundwater, possibly supplemented by biogas, rooftop PV to cover a large part of electrical needs.
The residential programming aims for a deliberate mix: about two-thirds 3.5–4.5 rooms or more, over a quarter 1.5–2.5 rooms, lofts/townhouses on the roof, tiered rents for different payment capacities. This diversification reduces rental risk and increases the project’s attractiveness.
For an institutional or collective investor, this type of conversion is strategic: it offers significant volume, a central location with excellent public transport access, and an attractive ESG profile – increasingly appreciated by pension funds and investment foundations.
Wohnen im Park: Renovate, Densify, Greener
Another major operation: the transformation of the “Wohnen im Park” estate, owned by Allianz Suisse. The idea is not to erect a new neighborhood from scratch, but to deeply modernize an existing complex and enlarge it through targeted additions (new building, extensions, duplex expansions) while preserving the park spirit, remarkable trees, and playgrounds.
It is essential for the investor to properly identify and understand the important elements that will influence their decisions and the performance of their investments.
– Major renovation of current buildings (envelope, windows, kitchens, bathrooms, technical systems).
– Switch to district heating, abandoning oil, installation of solar panels.
– Phasing of work to allow internal relocation of tenants – a strong signal in terms of social management and acceptability.
– New development zone (ZPP S) validated by the municipality, prefiguring the controlled densification of the site.
This type of operation shows how much the value of a property portfolio in Ittigen will depend, in the coming decades, on the ability to upgrade it in terms of energy and functionality. For a private investor who owns a small old building, the example is clear: without renovation, the risk of discount will increase as products like Aarerain or Wohnen im Park set new standards.
Regulation and Taxation: What is Changing (or Will Change)
Beyond Ittigen’s micro-situation, the Swiss fiscal and regulatory environment is in motion, and this directly concerns investing in real estate in Ittigen.
A federal reform, accepted in a vote, abolishes the theoretical rental value for owner-occupiers and ends most private maintenance and interest deductions at the federal tax level. Cantons will have to adapt their legislation, probably around 2028. This measure should, in the long run, favor households with little debt and make using very high mortgage leverage for primary residences slightly less attractive.
For a rental investor, two points matter:
– Mortgage interest will no longer remain as easily deductible at the cantonal/communal level, which may slightly erode net profitability.
– Maintenance deductions are likely to be more limited, even though some energy-related work may remain favored depending on cantonal choices.
The reform allows cantons to introduce a specific tax on second homes primarily occupied by their owners. This measure, illustrated by the case of Ittigen, aims to reorient taxation towards ‘non-productive’ residential use rather than the traditional rental market.
Regarding Lex Koller and Lex Weber, the municipality is not subject to second-home quotas that affect mountain resorts. However, general rules on purchase by non-residents remain valid: a foreign investor without a permit will not easily be able to acquire a purely residential building for rental purposes in the region; they would rather have to go through commercial structures, a residence permit, or turn to commercial-use assets.
Financing and Yield: What an Ittigen Purchase Implies
The financing rules applicable to investing in real estate in Ittigen are those of Switzerland as a whole:
– Minimum personal contribution of 20% for an owner-occupied property, and rather 25–30% for an income property or rented apartment.
– Maximum mortgage of 80% of the value, segmented into first (0–65%) and second (65–80%) mortgages, the latter needing to be amortized in 10 years for an investment property.
– Financial capacity test conducted with a theoretical interest rate of about 5%, plus 1% for maintenance and amortization costs, to guarantee the solidity of the operation even if rates rise.
For an average 70 m² apartment at, say, 600,000 CHF in Ittigen, a resident Swiss investor could, for example:
– Contribute 150,000 CHF (25%).
– Take out a mortgage of 450,000 CHF, of which 390,000 CHF in the first tranche and 60,000 CHF in the second.
Estimated gross annual rent for a property in the region, based on a gross yield of about 3%.
Mortgage rates remain historically low compared to international standards, even after the post-negative normalization. A large majority of Swiss loans are at fixed rates, with frequent durations of 5 to 10 years, even 15 years. SARON-indexed mortgages offer flexibility and allow switching to fixed rates in case of a cycle reversal.
Risks to Watch: No Catastrophe in Sight, But No Euphoria Either
Nationally, analysts mention a “moderate bubble risk” on home ownership, especially in overheated tourist regions (Grisons, major resorts) and some very expensive urban segments. Ittigen does not feature on these red-flag maps.
The main risks identified at the Swiss scale are:
– A sharp rise in interest rates, which would push mortgage stress tests above 6% and reduce purchasing power.
– A marked economic slowdown (slower GDP growth, rising unemployment, decrease in net immigration), which would affect housing demand.
– A tightening of rental regulations (capping rent increases, constraints on renovations).
The central scenario forecasts slow but continued economic growth, insufficient housing supply, and net immigration supporting demand. In Ittigen, the rental shortage, major qualitative densification projects, and centrality within the Bern agglomeration argue for good market resilience in case of an economic shock.
The only local indicator that calls for vigilance is the social assistance rate, relatively high (7.8% vs. 4.8% for the agglomeration and 4.0% for the canton). However, it varies strongly by neighborhood (between 1 and 14%). For an investor, this means knowing how to choose locations within the municipality, and adapting the product (rent level, target tenant type) to the micro-local context.
Relevant Investment Strategies in Ittigen
From this overview, several approaches stand out for investing in real estate in Ittigen.
A first angle is to target classical rental residential in well-located buildings, close to transport nodes (Papiermühle, Talgut center, axes towards Bern). For this segment, the interest is high leasing security and progressive capital appreciation, provided the properties are maintained at the technical and energy level required by the market.
The Worblentalstrasse 68 project illustrates a large-scale conversion and densification operation, where old offices are transformed into housing. This principle is also applicable on a smaller scale for private buildings, subject to mastering zoning regulations and construction costs, for example via vertical extensions or adding housing units within existing complexes.
A third angle, more institutional, concerns participation in large projects like Aarerain or Wohnen im Park, via collective vehicles (funds, investment foundations, cooperatives). These projects often combine:
The main strengths of this real estate project, combining connectivity, responsibility, and performance.
Located in a well-connected municipality, benefiting from optimal access to transport and services.
Concrete commitments with PlusEnergy label, material reuse policy, and decarbonization of heating systems.
Economies of scale ensuring optimized management, controlled costs, and stable rental yields over the long term.
Finally, the long-term dimension should not be neglected. Swiss demographic projections announce for the coming decades an increase in the number of older households, often wishing to stay in their familiar environment but in smaller, more adapted housing. Ittigen, with its high share of seniors, good level of amenities, and future green neighborhoods, is well positioned to welcome and retain this clientele. A concept of “aging-adapted housing” or small intergenerational residences could easily find its place there.
Conclusion: A Fundamental Market, Demanding but Coherent
Investing in real estate in Ittigen is neither betting on the next trendy resort nor chasing spectacular yield. It is betting on a dense municipality, very well integrated into the Bern agglomeration, which combines:
Analysis of the main factors influencing the local real estate market, highlighting current dynamics and future prospects.
A very low vacancy rate, indicator of a lasting imbalance between housing supply and demand.
Real estate prices already high for the canton, but still below those of Swiss hyper-urban centers.
A local economy in strong growth, driven by a significant increase in jobs in the tertiary sector.
A relatively attractive communal tax regime in the context of the canton of Bern, constituting a competitive advantage.
Ambitious ongoing projects that raise standards in terms of quality of life, urban planning, and sustainability.
The flip side of the coin is moderate gross yields, increasingly demanding regulations on energy and renovations, and the need to carefully work on the location and typology of properties.
For the investor ready to embrace a long-term wealth-building logic, relying on prudent financing and professional management, Ittigen offers a rare profile: a discreet but solid market, where structural housing shortage and the upscaling of urban projects allow for hopes of regular performance, far from excesses but also far from bad surprises.
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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.
