The Ticino real estate market is reshuffling
Across Switzerland, investment in new construction fell by 2.7 percent in 2024. In Ticino, this decline comes against the backdrop of an already tense situation. The vacancy rate fell from 2.08% to 1.92% in the space of a year, marking the first significant downward trend in years. What sounds like an easing of the situation at first glance actually signals the opposite. The market is tightening.
Photo: Milo Zanecchia
According to the ReMPA analysis, asking rents in Ticino fell by 5.6% in 2024/2025, while they rose by 2.4% across Switzerland. In Chiasso, the average rent is CHF 1,200, in Paradiso CHF 2,900. This decline reflects an oversupply of older, outdated apartments from the 1960s and 1970s. New builds and renovated properties are keeping their prices stable. The market is splitting in two.
New construction slows down, renovation picks up
Construction investment in Switzerland shifted significantly in 2024. While new construction projects received 2.7 percent less funding, conversions increased by 2.3 percent. This shift particularly affected Ticino. Approval times have doubled across Switzerland since 2010, while political uncertainties and rising material costs are also slowing things down. Developers are therefore increasingly focusing on renovation, replacement and conversion of existing buildings. Projects are becoming more selective, smaller-scale and more focused on process reliability.
New typologies for changing demand
The ProperTI Market Study 2026 confirms a progressive differentiation. Demand remains high in urban centers such as Lugano, driven by quality tourism and a consolidated range of services. In rural communities, rents have fallen by double digits. Compact units, service-oriented living and age-appropriate offers are gaining in importance. A pension fund in Ticino has already begun to focus its entire development strategy on housing for the elderly.
What investors are paying attention to now
Ticino shows in a condensed form what is also becoming apparent elsewhere in Switzerland. Densification alone is no longer sufficient as a strategy. What is decisive is what typologies, mixes of uses and neighborhood qualities are created. The canton is thus becoming a revealing indicator for the future of Swiss settlement development as a whole.
Info Box
Market Overview
Declining construction output despite sustained demand in key regions.
Drivers
Costs, procedures, demographic change, new forms of housing.
Key Message
Urban development is becoming more selective, context-sensitive, and political.