Investing in Ticino: Stable Housing Demand, Tax Incentives, and High Returns
In 2025, the Ticino real estate market remains one of the most promising in Switzerland for investors interested in purchasing properties to rent out. Thanks to a favorable combination of high housing demand, a stable regulatory environment, consistent returns, and tax advantages, Canton Ticino today represents a strategic choice for rental property investment.
Unlike other Swiss cantons that have already seen saturated growth and higher competition, Ticino still offers development potential and diversified demand, enabling investors to plan across different segments. From furnished one-bedroom apartments in the city to student housing, from lakefront residences to homes near university areas, the region is rich in opportunity.
1.A territory where demand doesn’t slow down
One of the key factors that makes rental property investment in Ticino particularly attractive is the continuity of housing demand. Various tenant profiles fuel a diverse, dynamic, and resilient market—even in times of macroeconomic uncertainty.
Key tenant groups looking to rent in Ticino include:
- Professionals and managers from other regions of Switzerland or from Italy, drawn by jobs in banking, healthcare, academia, and tech;
- Cross-border workers who, although living in Italy, often choose to settle in Ticino to reduce commuting time and improve quality of life;
- University students, especially around Lugano and Mendrisio, thanks to institutions like USI (Università della Svizzera Italiana) and the Academy of Architecture;
- International families, who value the region’s safety, multilingual school offerings, and access to major European cities;
- Active retirees, seeking peaceful but well-served communities.
Cities such as Lugano, Mendrisio, Bellinzona, and Locarno are at the heart of steady demand, supported by high quality of life and excellent transport connections—rail, road, and digital.
2.Where to Invest: High-Potential Areas
Ticino is a geographically and economically diverse region, so choosing the right location is key to maximizing returns. Some areas stand out for offering particularly favorable purchase-to-rental value ratios:
- Central Lugano and nearby districts like Paradiso, Viganello, Molino Nuovo: highly in demand due to proximity to universities, businesses, hospitals, and public transport;
- Chiasso and Mendrisio, close to the border, ideal for those working between Switzerland and Italy. Demand for mid-sized apartments is growing rapidly;
- University zones, such as the USI hill and the Academy of Architecture area, are excellent for student and young professional rentals;
- Lakeside locations, such as Morcote, Melide, Brissago, and Ascona, offer dual potential: tourist rentals in summer and long-term rentals for professionals the rest of the year;
- Well-connected municipalities, even in valleys or hillsides, are emerging as less saturated alternatives, boosted by new developments and improved infrastructure.
3.The Most Sought-After Property Types
To invest effectively in rental property, it’s essential to understand what features are most in demand among today’s tenants.
Key preferences include:
- One- and two-bedroom apartments, furnished or semi-furnished, with outdoor spaces (balconies, gardens, terraces);
- Rationally laid-out apartments with dedicated smart working areas;
- Features like parking, private laundry, cellar, elevator, and step-free access;
- Modern systems, high energy efficiency, and low maintenance costs;
- High-speed fiber optic internet or robust connections, crucial for remote workers.
Investing in properties with these features increases the likelihood of reducing vacancy periods, maintaining long-term interest, and ensuring stable returns.
4.Tax Benefits and Legal Security
One of the major strengths of real estate investment in Switzerland—especially in Ticino—is the transparent and stable regulatory framework. Rental agreements are governed by clear, balanced rules that protect both the landlord and the tenant.
From a tax perspective, property owners may benefit from:
- Deductions for ordinary and extraordinary maintenance or renovations;
- Incentives for purchasing energy-efficient properties;
- The ability to deduct mortgage interest payments;
- In some cases, exemption from capital gains tax on long-term property holdings;
- Favorable conditions for purchases made via companies or local real estate funds.
Wealth taxes on real estate in Ticino are also considered more advantageous compared to more saturated cantons with lower yields.
5.Efficient Management Through Professional Intermediation
Real estate investment doesn’t end at the purchase. The management phase is key to ensuring stable returns and minimizing risks related to vacancies, maintenance, or tenant selection.
That’s why working with experienced and locally rooted professionals like Comafim adds significant value. With strategic advice and deep knowledge of the Ticino market, Comafim can:
- Identify the most suitable areas based on your investment goals;
- Assess income-generating or high-potential properties;
- Coordinate renovations or value-enhancing projects;
- Provide property management services, from listing to lease management;
- Support the investor long-term with reporting, return analysis, and tax assistance.
6.A resilient Investment for diverse Profiles
Buying to rent in Ticino is a strategy suited both to first-time property investors and those looking to diversify their portfolio in a stable, secure environment.
Compared to more volatile investment types, real estate offers:
- A tangible, appreciating asset;
- Inflation protection;
- A steady income stream (rent) that can be adjusted with inflation;
- Clear, predictable taxation.
With average gross annual returns between 3% and 5%, depending on the area, Ticino remains one of the few places in Europe where it’s still possible to combine stability, returns, and growth prospects.
Conclusion: A Forward-Looking Choice
In an uncertain global context, the rental market in Ticino stands out for its solidity, appeal, and long-term vision. The combination of high quality of life, constant housing demand, tax advantages, and a transforming real estate supply makes income property investment a smart and resilient choice.
Whether it’s a small apartment for student rentals or a central two-bedroom unit for professionals, knowing where, how, and with whom to invest makes all the difference.
Comafim supports investors throughout the journey, offering local expertise, strategic vision, and tailor-made solutions.
Because in Ticino, buying to rent isn’t just an opportunity—it’s a valuable choice for the future.
