Bern Real Estate for Investment – Opportunities for BuyersCenter of tradition, diplomacyand measured growth

Real estate in Bern: invest in Switzerland’s political capital with long-term value

Introduction: Why invest in Bern

Bern, the capital of Switzerland and a UNESCO World Heritage Site, offers a unique combination of government stability, architectural charm, and a balanced lifestyle. While it may be quieter than Zurich or Geneva, Bern’s real estate market benefits from the presence of federal institutions, a strong local economy, and consistent demand from professionals, diplomats, and civil servants. The city’s carefully preserved medieval center, extensive green spaces, and cultural depth make it attractive to both lifestyle buyers and conservative investors looking for steady appreciation and low-risk assets.

Types of real estate in Bern

Bern provides a range of real estate options suitable for families, professionals, and long-term investors:

• Historic apartments: Located in the old town (Altstadt), often in buildings protected by heritage regulations
• Modern apartments: Found in areas like Länggasse, Breitenrain, and Wankdorf
• Family houses and duplexes: Located in residential districts like Muri, Liebefeld, and Elfenau
• New developments: Emerging in the western and northern suburbs with eco-design and energy efficiency
• Commercial spaces: Offices and mixed-use buildings in proximity to government and business districts

Legal framework for foreign buyers

Bern follows the federal Swiss real estate law known as Lex Koller, which regulates foreign ownership:

• Non-resident foreigners cannot acquire residential property in Bern as holiday homes
• Only holders of Swiss residence permits (B or C) can purchase primary residences
• Rental of owned property is allowed if the buyer resides in Switzerland
• Commercial property may be acquired by foreigners under certain conditions
• All transactions must be notarized and registered in the official land registry

Property prices and benchmarks

• 1-bedroom apartment (central): CHF 800,000–1.1M
• 2–3-bedroom apartment: CHF 1.2M–2.4M depending on location and amenities
• Detached family house (Muri or Elfenau): CHF 2.5M–5.5M
• Commercial units: CHF 9,000–13,000 per m² for centrally located offices
• New developments: CHF 10,000+ per m² in urban renewal zones

Bern offers more affordable property prices than Zurich or Geneva, making it attractive for investors seeking stable returns with lower entry costs.

Rental yields and tenant demand

Bern’s rental market is underpinned by steady demand from government employees, university staff, and international organizations:

• Gross rental yields: 2.7%–4.1% depending on location and property size
• Student and staff housing: Near the University of Bern and Inselspital Medical Center
• Corporate rentals: Moderate demand from embassies, NGOs, and Swiss enterprises
• Popular districts for rentals: Länggasse, Breitenrain, Kirchenfeld, and Ostermundigen

Infrastructure and lifestyle appeal

Bern’s infrastructure is well-developed, combining historical charm with modern convenience:

• Transport: Bern Airport, national train network, trams, and buses
• Education: University of Bern, international and bilingual schools
• Healthcare: Inselspital, Lindenhofspital, and several private clinics
• Recreation: Aare River activities, hiking and biking trails, museums, and theaters
• Quality of life: Ranked among the top global cities for liveability and environmental sustainability

Top residential areas for investment

• Kirchenfeld: Prestigious villas, embassies, and quiet surroundings
• Länggasse: Popular with students and young professionals
• Breitenrain: Family-friendly, central, and well-connected
• Muri and Gümligen: Upscale suburbs with spacious homes and nature access

Transaction costs and taxation

• Notary and land registration fees: ~2%–3% of the purchase price
• Annual property tax: ~0.2%–0.4% depending on municipality
• Capital gains tax: Progressive, with lower rates for long-term ownership
• Wealth tax: Applies to global assets of residents (rates vary by canton)
• Inheritance tax: Generally low or exempt for direct family members

Residency options for foreign investors

To purchase a primary residence in Bern, foreigners must obtain a Swiss residence permit:

• Permit B: Granted for employment, retirement, or financial independence (EU/EFTA nationals favored)
• Permit C: Permanent residence status after 5–10 years of legal stay
• Lump-sum taxation: Available in Bern canton for HNWIs with no Swiss-sourced income
• Family inclusion: Residency permits typically cover spouse and minor children

Example investment scenarios

• 2-bedroom apartment near Zentrum (CHF 1.3M): leased at CHF 3,800/month (~3.5% yield)
• Family villa in Muri (CHF 3.2M): used as primary residence with value preservation
• Student studio near Länggasse (CHF 750,000): rented to international students (~4.1% yield)

Risks and considerations

• Strict legal restrictions for non-resident foreign buyers
• Limited supply of new developments within the city
• Rental regulations favor tenant security and may limit flexibility

How VelesClub Int. helps you in Bern

• Assessment of legal eligibility and property access for foreign clients
• Residency application guidance and tax optimization planning
• Property search in top-performing districts with yield potential
• Post-sale management and long-term tenant sourcing

Conclusion

Bern offers long-term property value, strong tenant security, and a peaceful lifestyle backed by Switzerland’s political center. While regulations require strategic navigation, investors benefit from one of the country’s most historically stable markets. Whether for family relocation or capital preservation, Bern is a safe, cultured, and high-quality choice. VelesClub Int. ensures that each step — from legal clearance to purchase and management — is handled with Swiss precision and international investor care.