Big overview: Which districts are trending in Zurich and where are prices rising?

A lively district: Wiedikon

One of the new areas of feeling good is Wiedikon. In 2010 the busy Weststrasse was closed there, transit traffic was banned, and renovations of many run-down properties began. There is life in the neighborhood today. When the weather warms up, people wander outside. Anyone walking from Bullingerplatz in the direction of Brupbacherplatz feels like they are on a “food mile”.

Numerous new meeting places have popped up, with trendy restaurants and trendy bars lining the road. Formerly occupied by drunkards, yupies, and neighborhood originals, Idaplatz now shares a park bench. In no other quarter have condominium prices increased as much as in Wiedikon (plus 61 percent in five years). Albeit at a low level.

The cost of the same apartment is 3150 or 1760 francs

In no Swiss city is the difference between cheap and expensive as extreme as in Limmatstadt. A 4.5-room apartment built in 2003 in District 1 costs 3,150 francs. The same flat in Schwamendingen, Hirzenbach and Affoltern 1760 francs. Just as important as price differences is the void that doesn’t exist. It was 0.07 percent at the last count. In June 2022, 161 flats with a population of 444 thousand were vacant. There was a famine in the past, today there is a shortage of housing, one reads it that way. Donato Scognamiglio, president of real estate expert Iazi, puts this into perspective. “The constantly talked about housing shortage should not explode like this. Zurich is growing year by year and is bigger than ever. About 5,000 people move to Zurich every year and there are obviously apartments for them.”

As in Silicon Valley: Zurich West

Newcomers are usually young. Two-thirds of immigrants are between the ages of 18 and 39. “The younger generation is being drawn to Wipkingen, Wiedikon or Zurich-West,” says Vy Ha, head of acquisitions at Walde Immobilien. “Those who like to live in fashion are drawn to Zurich West.” This neighborhood is cool, urban, almost like Silicon Valley. People ride on e-scooters, work with laptops in many cafes, and people prefer to live in high-rise buildings. Where once ships were built and engines were screwed together, life is now colourful. In the last decade, a new district has grown from the industrial wasteland in western Zurich, the blue-green shimmering Primetower, the newly awakened viaduct arches, the many lighthouses from the University of the Arts at Toni site. Running shoe brand On rented the room across the street.

Businesses flock to the city center

It’s not just private individuals who are drawn to the city in Limmat. “About 10 years ago, companies migrated to the outskirts of the city,” says Robert Hauri, CEO of Intercity Group. Today it’s the opposite. “For image reasons, especially technology companies as well as companies in the alternative finance sector are looking for a good address in Zone 1.” District 1, in the heart of the city of Zurich, is the smallest of the twelve urban districts. It is also the most famous and the most expensive. In particular, Bahnhofstrasse and Talstrasse/Talacker are coveted addresses for companies, as well as General-Guisan-Quai and Mythenquai.

Foreigners raise prices

This development is making a comeback to the housing market. If Google and Microsoft together create more than 5000 jobs in the city centre, they will attract many expats from abroad. “It’s a classic cutthroat competition,” says Robert Hauri. “Most expats want to live in the city and raise prices and rents.” Or to put it another way: if you can’t find anything in Altstetten you should go to Schlieren, if you can’t find anything in Wiedikon you should go to Waldegg.

Neighborhoods no one wants anymore

“Neighborhoods nobody wants are gone anymore,” says Claude Ginesta, CEO of Ginesta Immobilien. “Price increases indicate that people are willing to move to more remote neighborhoods where they didn’t want to go in the past.” Oerlikon or Seebach are examples of this. “Good public transport and transport links also made these neighborhoods attractive.” And lower rental costs.

Altstetten’s vulgar charm

He smiled in the past, he’s cool today. Monetary incentives also attract people to Altstetten. An apartment with 3.5 rooms and a balcony can be bought for CHF 1,990. A 4.5-bedroom apartment for 1,378 million, which is well below average. “The border used to be in Wiedikon. “Families today are increasingly interested in Altstetten,” says Vy Ha, Head of Purchasing at Walde Immobilien. Altstetten has a vulgar appeal. You won’t find cool bars or trendy restaurants, but it’s nice to live there with kids. Thanks to the many nurseries, after-school care centers and playgrounds. The service density is high, there are many discounters, retailers and pharmacies. Even the forest and water can be reached quickly with Üetliberg and Limmat.

Buyers are in trouble

Buyers are going through tough times right now. The proposal is minimalist. In 2022, it was occupied by about 19,000 property owners in the city of Zurich. This corresponds to a meager 8 percent ownership interest. There are about 400 changes per year in condominium in Zurich. If you want to find what you are looking for in a particular neighborhood, you need to spend even more time. “Over the past 20 years, I have seen many young families who really want to buy an apartment or house in Zurich but have to move to the country,” says Intercity CEO Robert Hauri. An acquaintance searched for six years before finding a house in Höngg.

Objects are usually not advertised

Even people of great wealth need luck looking for apartments these days. Interested in Zürichberg, Seefeld, District 1 or Wollishofen. “If a property becomes available, which is very rare, we just advertise it in our internal newsletter and it’s gone,” says Vy Ha, Walde’s real estate agent. The situation in the city center and the 8th district is dangerously tense: “I always have to explain to clients that they can’t buy condominiums there because they don’t have condominiums,” says Claude Ginesta. «The old building structure and noise protection regulations do not allow condominium here. There are only 15 to 20 million blocks to buy. But who buys a whole house just to buy an apartment?» Some wealthy people move to Seefeld to rent. Due to its proximity to the Balgrist Hospital and Rudolf Steiner School, a large number of expats have also settled there in recent years, many Germans, many families including doctors.

26 percent nonprofit housing

And then there are nonprofit housing. In 2019, 26.4 percent of the apartments were non-profit. By 2050 it should be one out of every three flats, and voters in 2011 said yes to that. In June, voters voted to create a housing fund worth CHF 300 million. This should allow cooperatives, foundations and the City of Zurich itself to buy, build or renovate more non-profit flats. “Non-profit” means the non-profit rental of the created living space. Midsize companies will likely not benefit from this. Because the income is too high for that.

And a relief? Many hope so. But most experts don’t really believe it. “The next six months will be crucial,” says Donato Scognamiglio, a professor at the University of Bern. Depending on whether interest rates will be raised again, there may be a regression,” he said.