Where do expats move when they move to Switzerland?

Newly released data from the Federal Statistical Office (FSO) and compiled by Iazi highlights the preferred destinations for expatriates relocating to Switzerland.

Switzerland’s Rapid Population Growth

Switzerland has experienced the fastest population growth in Europe over the past two decades, as reported by the FSO. The population surpassed 9 million for the first time, with a 20% increase between 2004 and today, primarily driven by immigration.

German citizens and other European Union nationals have been the most common expatriates arriving in Switzerland recently. The ease of obtaining residence permits under the free movement of people policies has contributed to this trend.

Top Expat Destinations

Iazi’s analysis of FSO data reveals Zurich as the top destination for expats, attracting 7,000 net registrations between 2018 and 2022. Geneva followed with 5,300, and Basel with 2,500.

Currently, 1.6% of Zurich’s population, 1% of Geneva’s, and 1.3% of Basel’s residents arrived in the last five years. The international prominence of these cities, hosting the headquarters of many global companies, makes them popular choices for expatriates seeking employment.

Contrastingly, mountain communities such as Visp in Canton Valais have witnessed significant population growth, with 1.9% of the population arriving between 2018 and 2022. Other regions like the Bernese Oberland, Graubünden, Canton Zurich, and Vaud have also experienced high migration rates.

Expats and the Swiss Housing Crisis

While expatriates are considered a solution to labor shortages, concerns about their impact on the housing market have surfaced. The anti-immigration Swiss People’s Party has capitalized on these fears, especially during recent federal elections.

Economics professor Volker Grossmann suggests a potential link between expat influx and increased rental costs. His study indicates that a 1% net immigration of foreigners results in a 2.2% price increase for new rentals.

A Complex Relationship Between Expats and Price Rises

Grossmann advises against using migration as an ideological argument against immigration, emphasizing the need for measures addressing economic inequality to alleviate the housing crisis. Some economists question whether expats contribute to both economic growth and housing shortages, labeling it a “chicken or egg issue.” Simon Hurst concludes that housing shortages in major cities are likely a consequence of economic success rather than solely the fault of expats.