What are the three most in-demand types of real estate?

The real estate market is evolving rapidly under the influence of economic, demographic and social changes. In the context of rising prices, an ageing population, increasing urbanisation and changing lifestyles, certain types of real estate show strong long-term attractiveness for investors.

Studios and small apartments are among the most sought-after properties. This trend can be explained by several factors:

• Delayed family formation: In Switzerland, people move in together later and therefore live alone for longer, which prolongs the demand for small apartments.
• Students: Especially in major Swiss cities, students need small apartments for several years.
• Ageing population: Older people often neither have the means nor the desire to maintain large properties, which become burdensome over time.
• Professional mobility: Switzerland is characterised by high mobility and a large number of commuters.

From an economic perspective, these properties generally have low vacancy rates, higher tenant turnover (offset by constant demand), and often higher gross yields than larger units. Therefore, this segment represents a relevant lever for diversifying and securing rental income.

Demand for properties located in city centres continues to increase in urban areas. In cities such as Zurich, vacancy rates can be as low as around 0.5%. Several reasons explain this attractiveness:

• easy access to employment
• proximity to public transport
• availability of services (shops, schools, leisure)
• time savings in daily commuting

The low vacancy rate allows investors to maintain relatively high rent levels, as demand significantly exceeds supply. In this context of scarcity, households are also willing to pay higher prices for central locations. In addition, these properties offer long-term value appreciation potential, linked to land scarcity and the concentration of economic activity.

Long perceived as a temporary solution for students, shared housing is now establishing itself as a fully-fledged housing model, attracting various population groups. Demand is driven by several factors:

• reduction of housing costs
• search for social interaction
• flexibility, especially for students and young professionals

For investors, this segment offers several advantages: increased space utilisation, better optimisation of surfaces, and higher yield potential through rent pooling. It also enables the development of more hybrid operating models.

These three types of properties share a common feature: they respond to deep structural changes in society. Several factors explain their persistence:

• housing shortages in attractive areas
• sustained increase in real estate prices
• changes in household structures (growth of single-person households)
• increased professional mobility

These dynamics are not cyclical, but firmly rooted in the current functioning of the real estate market.

For real estate professionals, the key challenge is to align investment and development strategies with these structural dynamics.

Small apartments, well-located properties and shared housing models now display converging characteristics: strong demand, high resilience and medium- to long-term appreciation potential.

In a constrained market, these segments provide reliable benchmarks for decision-making and for structuring portfolios aligned with future developments.

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