Published on and written by Cyril Jarnias
Sandwiched between the federal capital and the banks of the Aare River, the municipality of Ittigen doesn’t make headlines like Zurich or Geneva. Yet, this small territory of 4.2 km² concentrates several ingredients that are increasingly interesting to real estate investors: immediate proximity to Bern, very advantageous taxation, a chronically tight rental market, and a series of ambitious urban projects focused on energy and quality of life.
In the Swiss context of housing shortage and rising prices, real estate investment in Ittigen is based on gradual capital appreciation rather than speculation. It is essential to understand the local dynamics of prices, rents, yields, and urban planning to assess this market.
An ultra-stable but expensive and pressured Swiss market
Before zooming in on Ittigen, we must place the municipality in the national context. For over twenty years, housing prices in Switzerland have more than doubled, without a major crash. Major banks like UBS rate the bubble risk as only “moderate”: the market is expensive, but supported by solid fundamentals.
The vacancy rate for housing in Switzerland, significantly below the equilibrium level, illustrates the chronic shortage.
The less attractive side of this stability are the yields. At the Swiss level, gross residential yields average around 3%, often below 2.6% in large cities. After deducting expenses (maintenance, management, non-recoverable charges, property and wealth taxes), net yields typically range between 1.5 and 2%. The main gain therefore comes, in most cases, from the slow but steady appreciation of the property rather than spectacular cash flow.
Ittigen: compact, very urban, and economically dynamic municipality
Ittigen belongs to the Bern-Mittelland district and is officially in the “central urban area” of the cantonal master plan. In other words: it is not a distant suburb, but a piece of the first ring around Bern. The municipality has about 11,600 inhabitants for 4.2 km², or nearly 2,770 inhabitants per km², a high density by Swiss standards.
Since the 1990s, the population has increased by only about 3%, a growth rate well below that of the Bern region, the canton, or Switzerland. Although a slight recovery has been observed recently (+0.57% per year between 2020 and 2023), the population is older, with an average age of about 44 and nearly 23% of residents aged 65 or over, a proportion higher than the national average (about 19%).
Residential mobility, however, is surprisingly high: each year, there are about 80 arrivals and 80 departures per 1,000 inhabitants. In other words, the population is constantly renewing itself, particularly through flows with Bern, Ostermundigen, Köniz, Zollikofen, or Bolligen. For an investor, this sustained mobility is an important indicator: housing units become vacant and are re-rented quickly, as long as the product is suited to the market.
The municipality of Ittigen, although modest in size with 11,600 inhabitants, has a robust economy with over 13,000 jobs, meaning it attracts an external workforce and generates significant rental demand. Between 2005 and 2021, the number of jobs increased by 41%, driven mainly by the tertiary sector (information, services, federal administrations, insurance, logistics). It is characterized by historically low unemployment (2.61% in 2011) and an average income of about 62,000 CHF, slightly above the cantonal average.
Taxation: a major asset for owners
One of the most powerful arguments in favor of investing in Ittigen boils down to one number: 113. This is the communal tax multiplier (Steuerfuss), i.e., the multiplier applied to the cantonal scale to calculate the communal tax on income and wealth. Across the canton of Bern, the average exceeds 170.9. Concretely, with equivalent income and wealth, a taxpayer will pay significantly less tax in Ittigen than in the majority of other Bernese municipalities.
| Indicator | Ittigen | Canton of Bern Average |
|---|---|---|
| Communal tax multiplier | 113 | 170.9 |
| Cantonal ranking (attractiveness) | 7th | — |
In addition to this favorable taxation is a modest communal property tax (about 1.1 ‰ of the official value) and a classic legal environment for the canton. For a resident investor, the combination of a good level of local income, a moderate tax rate, and immediate proximity to Bern forms a rare cocktail.
Around 2028, a federal reform will eliminate the theoretical rental value for owner-occupiers and limit deductions for interest and maintenance costs. This will mainly impact heavily indebted primary residences. For rental investment, deductions should become less generous, although cantonal adjustments remain to be specified. This development does not challenge the appeal of a municipality like Ittigen, but it requires prudent financing management, avoiding any over-indebtedness.
Real estate prices in Ittigen: above the cantonal average, below Bern
In terms of prices, Ittigen is clearly in the high-end of the Bernese market, while remaining below downtown Bern and far from Zurich or Geneva extremes.
Aggregated data for postal code 3063 paints the following picture:
| Indicator | Estimated Value (CHF/m²) |
|---|---|
| Average price, all properties | ~8,402 |
| Average price, apartments | ~8,570 |
| Average price, houses | ~8,234 |
| Median price, all properties | ~8,358 |
| Median price, apartments | ~7,317 |
| Median price, houses | ~10,866 |
The distribution shows strong heterogeneity: apartments are concentrated, with 60% of them between about 6,920 and 10,072 CHF/m², while 20% are below 6,920 CHF/m² and 20% above 10,072 CHF/m². For houses, 60% of properties are in a range of 6,251 to 10,630 CHF/m², with significantly higher extremes for some highly sought-after properties.
Comparison of the municipality’s positioning relative to other geographical areas.
The municipality is evaluated and positioned based on specific criteria relative to other benchmark areas.
This comparison allows the municipality to be placed in a broader context and its distinctive characteristics to be identified.
| Area | Avg. Apartment Price (CHF/m²) | Avg. House Price (CHF/m²) |
|---|---|---|
| Switzerland (average) | ~8,671 | ~7,876 |
| Canton of Bern | ~7,200–7,300 | ~6,700+ |
| City of Bern | >9,800 | ~9,457 |
| Ostermundigen | ~7,929 | ~8,054 |
| Ittigen | ~8,570 | ~8,234 |
Another telling indicator: a typical single-family house trades for around 1.3 million francs in Ittigen, compared to about 1.8 million in the city of Bern. For an apartment, the order of magnitude is around 900,000 CHF in Ittigen versus 1.3 million in the city, a differential of about 400,000 CHF while accessibility to the center remains excellent.
Recent trend: correction for houses, resilience for apartments
Price series show contrasting signals by segment. For 2025, the average apartment price in Ittigen is indicated around 6,964 CHF/m² with an annual change of +7.59%, significantly higher than national forecasts (2–4%): a typical catch-up movement for a first-ring municipality long undervalued relative to the city center.
Over the twelve months preceding February 2026, however, the overall average per m² fell by about 5.8%, a decline largely driven by houses. In detail:
| Period (vs. 12 months prior) | Apartments | Houses |
|---|---|---|
| 3 months | +0.9% | –5.0% |
| 6 months | –0.1% | –8.8% |
| 12 months | +0.3% | –11.3% |
Several factors may explain this house correction: a valuation peak reached after several years of increase, increased sensitivity to financing conditions for higher-priced properties, and a narrower market where a few transactions weigh heavily in the statistics. Apartments, on the other hand, benefit from strong structural demand (households of one to three people, seniors, young professionals) and a more accessible absolute price level.
For an investor, this divergence is important. It suggests that, in the current phase of the cycle, the risk of volatility is more pronounced for houses than for small or medium-sized condominium units, which are more liquid and universal.
Rental market: near-zero vacancy and high rents
While purchase prices may cause hesitation, the situation of Ittigen’s rental market largely reassures owners. For two decades, the vacancy rate has often oscillated at 0.5% or less. In 2023, it was still at 0.77%, a level below the Swiss average (~1.2%) and even slightly below the average for the Bern agglomeration (excluding the city).
Only 10% of apartment rental listings are over three months old, indicating a very dynamic market.
The rents themselves are in the upper range for the canton:
| Indicator | Ittigen (3063) | Worblaufen (3048) | Canton of Bern | Switzerland (median) |
|---|---|---|---|---|
| Median rent, all apts. (CHF/month) | 2,289 | — | — | — |
| 80% rent range (CHF/month) | 1,210 – 4,266 | — | — | — |
| Median annual rent (CHF/m²/year) | ~281 | ~293 | ~247 | ~240 |
An apartment rented for 2,289 CHF per month already represents a significant rent level for households, but demand remains strong thanks to the concentration of jobs, proximity to Bern, and transportation facilities.
For the owner, this translates into an extremely low vacancy risk, provided the product is standard: coherent size, good condition, location close to train stations (Ittigen, Papiermühle) or key bus lines.
Yields: between 2.7 and 3% gross, 1.5 to 2% net
Cross-referencing rent and price levels yields typical gross yields of 2.7 to 3.0% in Ittigen for well-located properties, which aligns with the cantonal average (2.98%). Standard cantonal simulations for apartments illustrate the order of magnitude:
| Apartment Type | Indicative Purchase Price (CHF) | Monthly Rent (CHF) | Approx. Gross Yield |
|---|---|---|---|
| 1 room | ~524,300 | ~1,500 | ~3.43% |
| 2 rooms | ~757,000 | ~1,770 | ~2.81% |
| 3 rooms | ~845,300 | ~1,980 | ~2.81% |
| 4+ rooms | ~1,048,600 | ~2,500</td | ~2.86% |
After subtracting operating expenses (routine maintenance, periodic renovations, management, insurance, possible property taxes, non-recoverable charges), net yields generally fall into a range of 1.5 to 2%. It is difficult, under these conditions, to imagine living solely on rental income; however, the leverage from credit, combined with gradual price appreciation, can generate an attractive overall return over 10 to 20 years.
Estimated price difference between a quick sale and an optimized sale for a 70 m² apartment in Ittigen, in Swiss francs.
Accessibility and infrastructure: a real asset for rental demand
One of Ittigen’s great strengths is its accessibility. The journey to Bern’s main train station takes about fifteen minutes, whether by public transport or bicycle. The municipality benefits from rail service (S-Bahn), key bus lines, and easy access to the highway network.
The Ittigen S-Bahn station is undergoing a complete renovation for 10.7 million francs, with platform modernization, creation of an underground passage, and improved accessibility. The municipality is also expanding its bicycle network and has high-performance digital infrastructure, including fiber optics.
Beyond mobility, Ittigen also invests in its school and sports facilities. The Altikofen, Kappelisacker, and Eyfeld schools are undergoing significant extensions (classrooms, cafeterias, daycare structures) to accommodate changes in the school-age population. A “Rain” sports, leisure, and care center is set to replace old sports halls and an assembly hall. A new four-unit kindergarten was already delivered in 2020 according to the Minergie-Eco energy standard, awarded a Lignum Prize for its wooden architecture.
For an investor, all this infrastructure creates an attractive environment for families and strengthens the depth of rental demand in the long term.
Major urban projects: positive energy and smart densification
The municipality doesn’t just manage what exists: it is steering a spatial development strategy called “Ittigen 2040“. The guiding idea is clear: densify qualitatively where public transport is efficient, preserve landscapes and green spaces, and push energy efficiency very far.
Aarerain: first positive-energy neighborhood in the Bern region
The Aarerain project in Worblaufen is emblematic of this orientation. On a former industrial site along the Aare River, a neighborhood of 189 housing units spread across buildings of six to eight stories is set to accommodate about 400 residents. The concept: a “PlusEnergy-Quartier” that produces, over the year, more energy than it consumes.
The buildings are equipped with photovoltaic panels and geothermal probes for heating and cooling. Over half of the plot is dedicated to preserved green space along the river. The neighborhood is designed to limit car traffic, favoring walking, cycling, and public transport. It includes daycare centers, workshops, a public square, and offers direct access to a communal water sports base on the Aare.
From an investment standpoint, Aarerain is typically a product for pension funds and specialized funds (as shown by the participation of CPV/CAP Coop), but its existence impacts the entire Ittigen market: it raises energy standards, reinforces the municipality’s “sustainable” image, and creates a new high-end residential hub minutes from Bern.
Worblentalstrasse 68: from federal offices to 135 circular housing units
Another key project: the conversion of a 1990s office building at Worblentalstrasse 68, occupied until 2026 by the Federal Office for the Environment. The project aims to create about 135 housing units following a circular construction logic: maximum reuse of the existing structure, limited addition (one extra floor, creation of townhouses), drastic reduction of car parking (44 spaces for 135 apartments) but 435 bicycle spaces, heating and hot water via groundwater, supplemented by rooftop photovoltaic panels.
The project offers great diversity in housing, mostly 3.5 to 4.5 rooms or more, complemented by smaller apartments and lofts. A public park will replace a meadow, creating meeting spaces. The site, located in a protected zone (ZPP and ISOS), required adaptations compared to the Minergie standard but boasts high overall energy performance.
Here again, the private investor will probably not buy the entire block but may target, in the long run, condominium units if part of the project is sold as co-ownership. Above all, this type of operation shows that the municipality favors transforming underutilized office space into well-serviced housing, which limits urban sprawl pressure and strengthens the residential appeal of the center.
Talgut Ost, Zentrum Papiermühle, and Wohnen im Park: densifying the center
In the heart of Ittigen, several projects are redrawing the contours of the urban center:
– Talgut Ost aims to create a new piece of the center blending housing, services, commerce, and quality public spaces. The goal is to better use existing buildings, increase density near the train station, and offer a wide range of apartment types suited to different profiles (young professionals, families, seniors).
The winning urban project, designed by the team E2A Piet & Wim Eckert, Studio Vulkan and Schnetzer Puskas, combines a tower and a linear wooden building. Articulated around an active ground floor base and generous public spaces, these elements aim to give the place a strong identity. The goal is to make it a true neighborhood hub with enhanced public accessibility.
– The Wohnen im Park project (Jurastrasse), led by Allianz Suisse, transforms a housing complex from the 1980s: major renovation, switch from oil heating to district heating, installation of photovoltaics, extensions by adding volumes while preserving green spaces. The specific zoning plan (ZPP S) has been approved, as has the associated development regulation.
Here too, we find the same common thread: controlled densification around transport hubs, upgrading energy standards, attention to green spaces and the quality of ground-floor uses. For investors, this means that central Ittigen neighborhoods are likely to benefit from progressive revaluation as these projects materialize.
Urban and land structure: a highly built-up municipality
Of the municipality’s 420 hectares, about 60% is built-up area, 24% agriculture, 14–15% forest, and 1% surface water. Within built-up zones, housing and buildings represent about one third, transport infrastructure nearly 19%, industrial buildings about 5%, parks and sports facilities 2%, and energy/water infrastructure 1–2%.
The potential for development through building extension is limited in Ittigen. The main room for maneuver lies in densification and conversion of existing sites, a strategy integrated via ZPPs and the REK “Ittigen 2040”. This structural land scarcity, combined with solid demand, supports a long-term upward trend in values, despite the possibility of occasional consolidation phases.
Investment and financing rules: Swiss standards apply
The financing rules in Ittigen are those, highly codified, of the Swiss market. For a rental investment, banks generally require a down payment of 25 to 30% of the price, with the remainder financed by mortgages covering a maximum of 80% of the value. These mortgages are segmented: a first tranche up to 65% (generally not amortized long-term) and a second tranche between 65 and 80% to be amortized in about ten years.
Banks assess your borrowing capacity with a theoretical interest rate of about 5%, plus 1% for maintenance and amortization. The total of these costs must not exceed one third of your gross income. This test applies even if actual loan rates (e.g., 1.5-2% fixed for 10 years, 0.8-1.2% SARON) are much lower.
For a 600,000 CHF apartment in Ittigen, a typical investor will contribute 150,000 CHF in equity (25%) and take out a 450,000 CHF mortgage. If targeting a gross yield of around 3%, this implies an annual rent close to 18,000 CHF, or 1,500 CHF per month, which remains realistic in the local market for a well-located 2.5–3 room apartment.
Foreigners are subject to the Lex Koller framework. A Swiss citizen or a resident with a C permit can buy freely. An EU/EFTA national with a B permit can acquire their primary residence, but not a pure investment property. A non-resident without a permit cannot, in principle, buy a purely rental apartment in Ittigen. Institutional investors have wider margins for commercial projects or specific portfolios.
What types of properties to target in Ittigen?
The analysis of prices, rents, and development projects naturally points toward certain products over others.
For a private investor, the core target is generally 2.5 to 3.5 room apartments located near train stations (Ittigen, Papiermühle), Talgut center, or major employers. These typologies interest both young professionals, couples without children, and seniors, the segments fueling the high turnover observed in the municipality.
This is the gross yield of real estate investments in Ittigen, based on purchase prices of 7,000 to 9,000 CHF/m² and rents of 280–300 CHF/m²/year.
Larger units (4.5 rooms and more) remain relevant, especially for families attracted by the setting and schools, but experience shows that percentage yields are often a bit lower there. However, these properties may better withstand future stricter rent regulations, as they offer high utility value.
Single-family houses offer buying opportunities due to the recent price correction (-11% year-on-year). However, they require a larger budget, are sensitive to financing conditions, and may be affected by rising interest rates or stricter standards (insulation, heating). For a long-term patrimonial investor, a semi-detached or small row house in a good location can be a safe choice, provided future required energy investments are anticipated.
Strengths and limitations of investing in Ittigen
In summary, investing in real estate in Ittigen means accepting a very Swiss profile: modest current yields, limited volatility, emphasis on capital preservation and gradual growth.
The main assets can be summarized as follows:
Summary of the main advantages and characteristics of the municipality, combining connectivity, economy, and quality of life.
Ultra-fast access to Bern (about 15 minutes from the main station). Attractive communal taxation with a tax multiplier (Steuerfuss) of 113, ranking 7th in the canton.
Very tight rental market with a vacancy rate around 0.5–0.8%. Rents above the cantonal average.
Strong local economy with more jobs than residents. Strong growth in the tertiary sector.
Clear policy focused on qualitative densification, soft mobility development, and energy transition.
Emblematic projects (Aarerain, Worblentalstrasse 68, Talgut Ost, Zentrum Papiermühle, Wohnen im Park) enhancing urban and environmental appeal.
The limitations and risks to keep in mind are equally clear:
Net yields are low (1.5–2%), requiring a long-term horizon and tolerance for modest cash flow. Prices are already high, reducing the safety margin, and the investment is sensitive to interest rate hikes. An upcoming federal tax reform could make highly leveraged financing less attractive, and the legal framework is restrictive for non-residents.
The investor who accepts these parameters and positions themselves on well-located, properly maintained, and energy-efficient properties, in central sectors or near train stations, has a good chance of seeing their assets appreciate over time, with rental security hard to match elsewhere.
Conversely, a profile seeking high immediate yields or quick speculative bets will likely find Ittigen’s market too “conservative”. Here, real estate remains, more than ever, a marathon rather than a sprint.
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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.
