SWISS INVESTMENT MARKET
The portfolios of Swiss real estate investors grew in 2020 by an average of 2%, not only due to purchases, but also – with few exceptions – due to increases in value. Around a third of investors increased their investments in existing property once again. Another third invested more in development projects in order to participate in value creation in the current low interest rate environment and achieve higher yields.
There will continue to be investment pressure in 2021 as capital from other asset classes moves into the real estate investment market. However, the property market continues to vary in terms of the quality of location and segment, and investment properties are becoming increasingly heterogeneous. The effects of the pandemic will also accelerate structural change in the various market segments during the current year, affecting location and property preferences. Moreover, the implementation of strategic topics related to environmental and social sustainability will represent a challenge for real estate investors in the medium term.