Dark Clouds on the Buy-to-Let Horizon

Dark Clouds on the Buy-to-Let Horizon
Why the Luxury Rental Segment Is Under Pressure

Demand for rental apartments above CHF 3,000 has been declining sharply for almost a year. Vacancy periods have doubled. In many locations, this now means four months or more without rental income.

Three main factors are driving this trend:

1. Fewer Expats
   International professionals who used to receive generous housing packages from their employers have become increasingly rare.
2. Generation Z Mindset
   This demographic prefers to spend money on experiences that make for great Instagram moments—concerts, short trips, dining out—rather than on an expensive apartment. A stylish new home may get posted quickly, but its “social media value” fades just as fast.
3. Economic Uncertainty
   In uncertain times, many tenants hesitate to move or commit to higher rents.

Bottom line for investors: Those renting out in the high-end segment must factor in longer vacancy periods—or adapt their offering to meet the shifting demand.