immo!nvest – Die Plattform für Standorte und Immobilien

Category: Business

  • Strategy presented for increasing operating result by 2030

    Strategy presented for increasing operating result by 2030

    BKW presented its Solutions 2030 strategy on 8 November. According to a press release, this strategy aims to increase the operating result before interest and taxes to CHF 1 billion by 2030. according to the annual report, the operating result in 2023 was CHF 620.3 billion.

    The operating result for the Energy Solutions division is set to rise to CHF 650 million. in 2023 it was 534.6 million. The result for the Grids division is expected to be CHF 150 million in 2030 (2023: CHF 146.7 million). The strongest growth is targeted in the area of infrastructure and building solutions. in 2023, the result should be CHF 200 million, with a loss of CHF 40 million in 2023. General planning in infrastructure and building construction as well as building technology solutions are to be expanded and profitability steadily increased.

    The Bern-based energy supplier plans to invest CHF 4 billion to achieve this, at least half of it in Switzerland. The investments are to be financed from free cash flow, which is expected to total over CHF 5 billion during this period.

    “With the comprehensive further development of the strategy, BKW is supporting its customers even more strongly in the transformation of the energy system with forward-looking solutions”, BKW Chairman of the Board of Directors Roger Baillod is quoted as saying in the press release. CEO Robert Itschner emphasises the breadth of the targeted growth: “All of BKW’s business areas will contribute to achieving these goals. BKW is investing in its strong Swiss base and growing in other European countries in a targeted manner.”

    BKW aims to reduce its net greenhouse gas emissions to zero by 2040.

  • Expansion of renewable energy plants in Italy

    Expansion of renewable energy plants in Italy

    The Repower Group is significantly expanding its portfolio in Italy. According to a company press release, it has acquired the 35 per cent of shares in Repower Renewable previously held by the London-based investment firm Omnes Capital since it was founded in 2018. The Poschiavo-based electricity producer, distribution system operator and energy trader has also held the remaining 65 per cent since then. This means that the Repower Group now controls 100 per cent of Repower Renewable.

    This means that Repower is now the sole owner of Repower Renewable’s Italian wind, solar and hydroelectric power plants. Their total output amounts to around 120 megawatts. According to the press release, there is also a “full pipeline” of already approved power plant projects with a total capacity of a further 150 megawatts.

    According to the statement, Repower’s strategy envisages the consistent expansion of its portfolio of renewable energy plants in Switzerland and Italy. The 30,000 customers in Italy to date are to be supplied entirely with certified renewable energy in the future.

  • Discussion on guarantee of continued existence in aviation law

    Discussion on guarantee of continued existence in aviation law

    The Federal Council’s proposals for amendments to the Aviation Act are currently undergoing consultation until the end of November. They also provide for a guarantee for flight times. Up to now, the national airports of Zurich and Geneva have only been protected as existing facilities. In our view, the guarantee of continued existence “is a step in the right direction”, said Regine Sauter, Zurich FDP National Councillor and President of aviationsuisse, at an event organised by her association in Bern on 6 November.

    Regine Sauter sees the industry under pressure. In both Zurich and Geneva, there are calls for flight times to be restricted. This makes it all the more important to show politicians how important the connection is for the location.

    According to Martin Eichler, the importance of the industry goes far beyond its direct economic performance. “Aviation is a driver of prosperity,” said the partner of the consulting firm Infras in his presentation. Among other things, he discussed the share of air freight in exports and tourism. Gerry Zurmühle, President of IG Air Cargo Switzerland, referred to the balancing role of air freight in the event of bottlenecks in other parts of the supply chain. Jean-Marc Probst, President of the French-speaking Swiss interest group Aeria , pointed out that Geneva is the second largest airport for private aviation in Europe.

    Martin Eichler also referred to the external costs of aviation. In Regine Sauter’s view, blending quotas for alternative fuels are the best way to achieve climate targets. “Swiss companies are very active in this area.”

    The association elected two new members to the Board: Raphaël Tschanz, Director of the Zurich Chamber of Commerce, representing the Swiss Chambers of Commerce and Industry, and Michael Hug from the Basel Chamber of Commerce. Aviatonsuisse represents the interests of users in the aviation industry.

  • Urdorf defines 2030 property strategy

    Urdorf defines 2030 property strategy

    According to a statement, the Urdorf municipal council has approved the Urdorf 2030 property strategy. The specific development planning and investment requirements will be reviewed and concretised as part of project developments and in coordination with the users’ requirements planning. The corresponding projects will be developed from 2025 onwards and submitted for decision-making in accordance with the competences in the municipal ordinance, according to the municipality’s press release. The detailed report can be viewed and downloaded online. The construction measures set out in the report, whether renovation, new construction or extension, could cost up to 110 million Swiss francs, spread over the coming years and decades.

    It also lists all the individual measures and the timetable, from schools and kindergartens to structural changes to the fire brigade or the municipal administration. The idea of consolidating them in a single large municipal building in the centre was rejected. The municipal council and planners set two time horizons for concrete planning and subsequent construction: from 2025 to 2029 and from 2030 to 2033.

    The municipality conducted an online consultation from 15 December 2023 to 15 January 2024 to record the needs relating to the municipal properties. A total of 444 people took part. In August, the Urdorf municipal council then presented the key points of the property strategy to the population at a public event in the centre hall.

    According to the report now presented, the property portfolio of the municipality of Urdorf comprises a total of 69 properties in the buildings category. 35 of these are administrative assets and one property is part of the municipality’s financial assets.

  • Statistics on non-profit housing construction 2024

    Statistics on non-profit housing construction 2024

    The proportion of non-profit housing throughout Switzerland is around four per cent, but is significantly higher in urban areas such as Zurich at over 20 per cent. Non-profit property developers are not profit-orientated. They set rents based on actual costs and do not make a profit. This approach helps to make housing more affordable and fulfil the constitutional mandate to promote affordable housing.

    Lower rents compared to the market
    Rents in non-profit housing are on average eight to 20 per cent lower than in conventional rental properties. For example, a four-room flat in the non-profit segment costs an average of CHF 1359, while a comparable flat on the general market costs CHF 1647. These cost advantages make a significant contribution to easing the burden on tenants and promote social mixing.

    Efficient use of living space
    The overall use of living space is lower in non-profit housing construction. While the per capita consumption of one- to two-bedroom flats is nine per cent higher than the general stock, it is 25 to 38 per cent lower for larger flats, such as those with four to five rooms. Overall, residents of non-profit flats use 22 per cent less space, which contributes to the more efficient use of living space.

    A look into the future of non-profit housing
    The brochure “Statistics on non-profit housing construction 2024” provides detailed data and valuable insights into this important segment. Infographics and tables provide a clear overview of the development and importance of non-profit housing. They show how this housing model contributes to the creation of affordable and sustainable living space. A central basis for a socially just housing policy in Switzerland.

  • Property sector facing change with obstacles

    Property sector facing change with obstacles

    Growing awareness of climate risks is increasing the pressure on the property sector to find solutions. According to the latest C-Change survey, 93 per cent of the investors surveyed take climate-related risks into account in their decisions. This trend reflects the increasing commitment to not only recognising climate policy requirements, but actively integrating them into the corporate strategy.

    Lack of data and knowledge
    Despite positive developments, there are obstacles to the implementation of decarbonisation measures. According to the survey, 61 per cent of companies lack the in-depth knowledge and qualitative data needed to take the right steps to reduce CO2 emissions. Aleksandra Smith-Kozlowska from ULI emphasises the need for systematic knowledge transfer and better availability of high-quality data.

    Transition risks on investment strategies
    The survey shows that transition risks are increasingly influencing investors’ strategies. 94 per cent of the companies surveyed report that the risks influence their portfolio decisions. Although 51 per cent make investments in properties with these risks and 30 per cent feel compelled to divest themselves of affected properties. The cost of retrofitting and the risk of asset losses are becoming the focus of attention.

    An instrument for risk mitigation
    The survey highlights the growing interest in a CO2 tax as a strategic tool for decarbonisation. 21 per cent of companies have voluntarily introduced internal carbon pricing mechanisms in the last 12 months. Around 71 per cent use a shadow price per tonne of CO2 to incorporate potential emissions costs into business planning

    Obstacles to the sustainable property industry
    Despite the progress made, there are concerns about competitiveness that have so far slowed down the industry-wide introduction of the carbon tax. Critical factors include lack of data consistency, lack of stakeholder support and uncertainty about the impact on financial results and operational strategies.

    As measures, the ULI calls for more intensive education and the introduction of clear guidelines. The ULI’s latest publications, including “Accelerating Accountability: The Case for Carbon Pricing” and “Universal Principles for Carbon Pricing in the Real Estate Sector”, are intended to help the industry establish carbon pricing as an integral part of the value chain and thus promote long-term sustainability goals.

  • Investments in the circular economy and decarbonisation strengthen CO2 strategy

    Investments in the circular economy and decarbonisation strengthen CO2 strategy

    Holcim receives a grant from the EU Innovation Fund for another major cleantech project. This brings the number of Holcim’s EU-funded CCUS projects to seven. According to a press release from the building materials manufacturer, this new carbon capture and storage (CCUS) project at its site in Martres-Tolosane in south-west France is a highly scalable plant based on mature technologies and close partnerships.

    Holcim had already announced an investment of 100 million euros in the sustainability of this cement plant in 2017. Between 2021 and 2023, Holcim invested a further 200 million euros in the decarbonisation of its French industrial facilities and made a further 60 million euros available for its continuation in May of this year.

    According to Holcim, these investments will have a leverage effect on the development of new sectors and jobs in the field of the circular economy on the one hand, and in the medium term in the field of carbon capture, storage and utilisation on the other. To this end, a new pilot platform, a real industrial test centre for open innovation, will be built at the Martres-Tolosane factory. It will be dedicated to improving new CO2 capture technologies.

    “Holcim is well on its way to making net-zero cement and concrete a reality on a large scale in this decade,” CEO Miljan Gutovic is quoted as saying in the press release. “This support from the EU Innovation Fund is a testament to the strength of our engineering teams, the maturity of our technologies and progressive partnerships across the value chain.”

  • Opportunities and risks of property crowdfunding in Switzerland

    Opportunities and risks of property crowdfunding in Switzerland

    For many investors, entering the property market without their own large capital is a challenge. Property crowdfunding platforms such as Crowdhouse, Foxstone and Crowdli now make it possible to participate in income from investment properties with smaller amounts. Investors invest in residential and commercial properties via co-ownership shares and benefit from rental income and potential increases in value. However, despite the advantages – such as a lower entry hurdle and active property management – it is important to know your rights and obligations as a co-owner.

    Advantages and costs of crowdfunding
    Crowdfunding allows investors to invest from as little as CHF 20,000 to CHF 100,000 and thus gain access to high-yield properties. Platforms such as Crowdhouse and Foxstone take over property management, which means that the role of investors remains comparatively passive. However, the investment is not without costs: platform and management fees as well as taxes on rental income reduce the return. Interested parties should check all costs incurred in detail and compare offers from different platforms.

    Risks and challenges – what you should be aware of
    As with any investment, there are also risks with property crowdfunding. In addition to the usual market fluctuations, there are challenges due to possible conflicts of interest among co-owners, high acquisition costs and the long-term commitment to a property. Experts recommend carefully scrutinising providers and diversifying the portfolio in order to spread the risk and cushion potential losses. Property funds offer a more flexible alternative for investors who want to remain independent.

    Important selection criteria for successful crowd investments
    When selecting a crowdfunding platform, the reputation of the provider is crucial. Platforms with a stable corporate structure and a positive track record are clearly preferable. Furthermore, the location of the property should be carefully analysed – preferably in economically strong regions with low vacancy rates. Personal dialogue with other investors and a detailed look at the contractual conditions increase the chances of a successful investment.

    Property crowdfunding enables investors to enter the property market even with a smaller budget. Well-selected investments in high-growth regions can promise attractive returns, but costs, risks and long-term commitment should always be considered. With a diversified portfolio and a thorough examination of the platform and projects, a solid foundation for sustainable property income can be created.

  • Automated portfolio valuation tool revolutionises property analysis

    Automated portfolio valuation tool revolutionises property analysis

    The new version of the SSREI portfolio valuation tool is characterised by significant automation that simplifies and speeds up the valuation process. Thanks to the partnership with SFGM, building and location data can be retrieved directly via the EGID number, which minimises manual input. This provides owners with important information on monument protection, contaminated sites, noise pollution, radon risks, energy supply and public transport connections.

    Automated indicator evaluation based on master data
    The optimised evaluation tool enables the automated evaluation of 23 of the 36 sustainability indicators. The combination of publicly available information and building-specific data enables a precise assessment of the potential. Information such as year of construction and renovation date can be used to derive the building envelope and noise protection values – supported by the relevant SIA standards.

    Further optimisations and interface connection
    Newly developed tools help to determine usage density and utilisation based on statistical data and provide a sound basis for decision-making. The tool also offers interfaces to external asset and portfolio management systems, which facilitates integration into existing processes and makes data analysis and evaluation even more efficient.

    The portfolio valuation tool provides property owners with a valuable basis for the sustainable development of their portfolios and makes an important contribution to value retention and regulatory protection. It supports investors in future-proofing their property portfolios and meeting the requirements of sustainable transformation.

  • Stable increase in the third quarter of 2024

    Stable increase in the third quarter of 2024

    In the third quarter of 2024, the Swiss property market recorded its third consecutive quarter of rising prices. Flat prices rose by 1.1%, while prices for single-family homes increased by 0.3%. Stronger growth was observed in the lower-priced markets in particular. Prices rose at an above-average rate in cities such as Neuchâtel, Sion and Biel. In contrast, large cities such as Zurich and Basel only recorded moderate increases.

    Regional differences characterise the market
    There were also significant differences at cantonal level. Neuchâtel ( 1.9 %), Valais ( 1.8 %) and Jura ( 1.6 %) led the price increases, while slight declines were recorded in Vaud and St. Gallen. This trend also continued for single-family homes, with increases particularly in more rural cantons such as Appenzell Innerrhoden and Obwalden, while prices fell slightly in urban regions such as Geneva and Lausanne.

    Low transaction volumes despite positive outlook
    Despite price growth, the third quarter saw the lowest transaction volume since 2017. This decline is partly due to seasonal factors, but also reflects a general slowdown. Forecasts suggest that the fourth quarter of 2024 could also be at a moderate level, although a return to previous highs is unlikely.

    Interest rate cuts are fuelling the market
    The latest interest rate cuts by the Swiss National Bank (SNB) are having a positive impact on mortgage interest rates and helping to stabilise the market. While long-term interest rates have only been cut slightly, experts expect the SNB’s loose interest rate policy to continue to support the property market.

    The fundamental data suggests that property prices will continue to rise in the coming months. Now could be a favourable time for potential buyers to enter the market, as waiting any longer could lead to higher prices.

  • Rents and prices for residential property in the canton of Glarus remain on an upward trend

    Rents and prices for residential property in the canton of Glarus remain on an upward trend

    “Canton Glarus remains a popular residential region”, writes Glarner Kantonalbank in a press release on the 2024 property market report for the canton of Glarus. It was compiled by the cantonal bank in collaboration with Wüest Partner AG from Zurich. The report shows the current trends and forecasts how rents and prices for residential property will develop in the canton.

    The housing market in the canton of Glarus is currently characterised by stable demand and a short supply. As a result, prices for condominiums have continued to rise. Specifically, they were up 2.1 per cent year-on-year in the second quarter of 2024. At the same time, prices for single-family homes fell slightly year-on-year. However, according to the experts at Kantonalbank and the real estate service provider, the recent fall in interest rates will continue to stimulate demand for residential property. They therefore expect the slight upward trend to continue.

    The experts have observed a 4.5 per cent increase in rents over the past year. However, they should “remain stable for the time being” following the latest increases in April, according to the report. The full report can be viewed on the Kantonalbank website.

  • Home ownership is becoming more expensive

    Home ownership is becoming more expensive

    Prices for owner-occupied residential property rose in the third quarter of 2024 compared to both the previous quarter and the previous year, Raiffeisen Switzerland reported in a press release on the banking group’s latest transaction price index. “The price momentum on the Swiss owner-occupied property market has not weakened any further recently, so its low point is probably behind us,” says chief economist Fredy Hasenmaile. “The already significantly more favourable financing conditions and the prospect of further interest rate cuts should boost demand for residential property.”

    Prices for single-family homes in the quarter under review were 1.6 per cent higher than in the previous quarter. In a year-on-year comparison, the experts at Raiffeisen Switzerland observed an increase of 3.3 per cent. Prices for condominiums were up 0.9 per cent quarter-on-quarter and 2.8 per cent year-on-year.

    In a regional comparison, prices for single-family homes in Central Switzerland rose the most year-on-year at 13.7 per cent. Central Switzerland also led the way for condominiums with an increase of 7.9 per cent. By contrast, prices for single-family homes in the Bern and Lake Geneva regions fell by 2.1 and 3.4 per cent respectively year-on-year.

  • Single-family homes are becoming more expensive

    Single-family homes are becoming more expensive

    Offer prices for residential property bucked the trend of recent months in September, SMG Swiss Marketplace Group(SMG) reports in a press release on the latest Swiss Real Estate Offer Index. Prices for single-family homes were 1.5 per cent higher across Switzerland compared to the previous month. At the same time, prices for condominiums fell by 0.3 per cent. The SMG Swiss Marketplace Group combines the digital marketplaces of TX Group, Ringier and Mobiliar.

    “In the last twelve months, sellers of single-family homes have turned the price screw in both directions”, Martin Waeber, Managing Director Real Estate at SMG, is quoted as saying in the press release. “September has now seen the highest monthly increase in asking prices since December 2022.” Year-on-year, prices for single-family homes rose by 1.7 per cent in September. Prices for condominiums were up 2.9 per cent year-on-year in the month under review.

    SMG’s property experts observed a month-on-month increase of 0.7 per cent in asking rents across Switzerland in September. Above-average increases were recorded for asking rents in the regions of Central Switzerland, Zurich, Northwestern Switzerland, Eastern Switzerland and Ticino. In the Lake Geneva region, on the other hand, asking rents fell by 0.7 per cent.

  • Real estate industry anticipates rising prices for residential properties

    Real estate industry anticipates rising prices for residential properties

    “Confidence is back in the real estate sector and is displacing the negative expectations of the two previous years,” is how KPMG introduces a press release on the latest edition of the consultancy firm’s Swiss Real Estate Sentiment Index. Specifically, the index is now back in positive territory at 29.9 points. However, the approximately 400 real estate experts and valuers surveyed for the index only expect prices in the residential real estate market to rise. They believe that prices for commercial and specialist properties will continue to fall.

    The assessment of economic development is also currently positive again at 21.5 points after two clearly negative years. “The optimistic economic outlook is linked to the easing of interest rates on the one hand and the progress made by the central banks in combating inflation on the other,” Beat Seger, real estate expert at KPMG, is quoted as saying in the press release. In terms of risk perception, stricter regulations have pushed interest rate risks into the background.

    The real estate experts surveyed expect prices to rise, particularly in the Zurich, Lucerne/Zug and Geneva regions. For the Lugano and Basel regions, however, they expect prices to continue to fall. The majority of respondents are also of the opinion that the current political initiatives are exacerbating the shortage of affordable housing.

  • Binding Prize for Biodiversity 2025

    Binding Prize for Biodiversity 2025

    This year’s prize focuses on projects that emphasise the positive interaction between humans and nature. The quality of our environment has a decisive influence on our health. Studies show that biodiverse green spaces not only contribute to recreation, but can also promote people’s well-being.

    The jury is particularly looking forward to projects that have considered the synergy between biodiversity and human health in their planning from the outset. This is where the Binding Prize comes in: We are looking for ideas that are not only visionary, but also offer concrete, realisable solutions.

    Honouring outstanding achievements
    Applications are accepted in two categories. One is the main prize, worth CHF 100,000 for large project perimeters, and the recognition prize, worth CHF 25,000 for medium-sized projects. With a total prize money of 125,000 Swiss francs, the Sophie and Karl Binding Foundation supports projects that are able to sustainably strengthen and revitalise biodiversity in urban areas.

    Submission and deadlines
    Submit your projects today at www.preis-biodiversitaet.ch. The foundation and the seven-member jury of experts are eagerly awaiting high-quality proposals that inspire imitation and serve as examples for the active protection of biodiversity in urban areas.
    The closing date for applications is 31 January 2025. Detailed information on participation, the criteria and the application form can be found on the above-mentioned website.

    A milestone in nature conservation
    The Sophie and Karl Binding Foundation has been awarding the Binding Prize for Biodiversity, the highest honour for nature conservation projects in Switzerland, endowed with CHF 125,000, since 2021. Each year, the prize focuses on a specific topic and recognises outstanding efforts to promote natural diversity in urban areas.

    Use this opportunity to make a contribution to improving our urban areas. Be part of the change!

  • Bank gives cautious all-clear for real estate bubbles

    Bank gives cautious all-clear for real estate bubbles

    UBS has presented this year’s edition of its Global Real Estate Bubble Index. According to a press release, the bubble risk in the residential real estate market has fallen slightly for the second year in a row. For its study, the Zurich-based bank examined the real estate situation in 25 major cities around the world. Of all the cities, Miami on the east coast of the USA shows the greatest risk. The Japanese capital Tokyo ranks second. Zurich also has a high bubble risk, although there has been a significant decline here compared to the previous year, according to the press release. Geneva, Los Angeles and Toronto also fall into the “increased risk” category. Locations affected by moderate risk include Amsterdam, Frankfurt/Main, Munich, Tel Aviv and Hong Kong. A low risk is expected in London, Milan, Paris and Stockholm as well as outside Europe in New York, San Francisco and São Paolo.

    “Real home prices in many cities have bottomed out. The economic outlook will determine the dynamics of future price development more than in recent years,” Matthias Holzhey, lead author of the study at UBS Global Wealth Management, is quoted as saying in the press release.

  • Property developer reduces profits to strengthen future investments

    Property developer reduces profits to strengthen future investments

    SitEX Properties Holding AG generated gross sales of CHF 10.86 million in the first half of the year, the Schwyz-based property development company announced in a press release. In the same period last year, gross sales totalled 32.70 million Swiss francs. Net profit after tax fell from CHF 7.34 million to CHF 1.51 million in the same period.

    “Over the past ten years, sitEX has been fortunate enough to achieve profitable half-year and annual results without exception,” CEO Beat Kähli is quoted as saying in the press release. However, the company, which specialises in real estate in Switzerland and the USA, is currently “in an investment phase, which is why only small profits could be achieved compared to previous years”. According to Kähli, sitEX currently has a development pipeline totalling more than CHF 5 billion. This “secures the basis for future sustainable profits”, according to the company boss.

    In recent years, sitEX has distributed around CHF 60 million of its profits to shareholders. This year and next, however, the company intends to concentrate on repaying liabilities and investments, explains Christoph Stutz, Chairman of the Board of Directors of sitEX.

  • National Council approves 280 million for construction projects

    National Council approves 280 million for construction projects

    On Wednesday, the National Council unanimously approved a bill that earmarks CHF 277.8 million for various renovation and conversion projects on civilian federal buildings. Particular priority will be given to projects that fulfil contractual obligations, prevent structural damage or provide long-term economic relief.

    Collection Centre and Jubilee Hall
    The largest share of the funds – CHF 92.4 million – is earmarked for the expansion of the Collection Centre in Affoltern am Albis. In addition, CHF 15.4 million is to be invested in the renovation of the Jubilee Hall at the Magglingen Sports Centre, which specialises in artistic gymnastics.

    Focus on other construction projects
    170 million francs have been reserved for smaller construction projects under 10 million francs. These funds can be used flexibly for urgent property projects or unforeseen property purchases.

    The Real Estate Dispatch 2024 specifically prioritises civil construction projects that should bring both economic benefits and long-term structural stability. The next step is for the Council of States to decide whether to approve the loans.

  • Transformation in focus EXPO REAL 2024

    Transformation in focus EXPO REAL 2024

    Once again this year, EXPO REAL conducted a survey among its participants. Of the 516 exhibitors and visitors surveyed, 91 percent consider digitalisation to be a very important or important topic, followed by interest rate policy and energy solutions for neighbourhoods. Stefan Rummel, Managing Director of Messe München, emphasises: “EXPO REAL 2024 is not only dedicated to the important topics of the future in the conference programme, but also in the new ‘Transform & Beyond’ exhibition area.”

    Changing types of use and investor interests
    The survey also shows that new types of use are gaining in importance. For 70 per cent of respondents, the residential sector is in first place, followed by care properties and data centres, which have become much more relevant. Interest from future-oriented investors such as pension funds and family offices also remains high.

    Focus on affordable housing
    Another key issue is the creation of affordable housing. 95 per cent of respondents see building in existing buildings as a decisive factor, closely followed by the cost of land and serial construction. These topics will also take centre stage at this year’s EXPO REAL, with a special exhibition and practical examples.

    Europe remains attractive
    Globally, Europe remains a key market for property investment, with 81 per cent of votes. Western Europe and the D-A-CH region are seen as particularly important future markets. The USA and the Asia-Pacific region also continue to offer potential.

    The survey for EXPO REAL 2024 makes it clear that the transformation of the real estate portfolio and digitalisation are key factors for the future of the industry. With diverse discussions and new exhibition formats, EXPO REAL from 7-9 October will address the pressing challenges and offer space for exchange and solutions.

  • Two Swiss property giants about to merge

    Two Swiss property giants about to merge

    Cham Group and Ina Invest, a property company listed on the SIX Swiss Exchange, have signed a letter of intent for a merger. This is to be completed as a “merger of equals” by 2025. The merger would create a new, strong force in the property sector that would be one of the industry leaders.

    A first-class portfolio in key locations
    The combined portfolio of the two companies comprises high-quality properties and development projects in Switzerland’s strongest economic regions, including Basel, Cham, Geneva, Lausanne, Winterthur and Zurich. Particularly impressive: the residential share will be over 50% after completion, which emphasises the focus on sustainable and future-oriented living in urban conurbations.

    Sustainability and synergies as success factors
    Both companies attach great importance to sustainability and plan to consistently implement these standards in the development and management of the properties. The merger not only brings a larger portfolio, but also clear advantages: economies of scale, greater flexibility in project realisation and improved financing options.

    The talks are currently still at an early stage. If the negotiations are successful, a vote on the merger will be held at the general meetings of the two companies in spring 2025. A merger would realign the forces in the Swiss property market and create opportunities for a sustainable future.

  • Parliament extends deadline for reporting construction defects

    Parliament extends deadline for reporting construction defects

    The amendment to the law on sales and contracts for work and labour aims to strengthen the legal position of house buyers and builders. The previous practice of reporting construction defects as soon as they were discovered often led to uncertainty and legal disputes. The Federal Council therefore put forward a compromise proposal, which was supported by both chambers, for a sixty-day period for notifying defects in contracts for work and property purchase contracts.

    Debate on notice periods and limitation periods
    The National Council had originally proposed dispensing with the notice periods altogether and instead introducing an extended limitation period of ten years. However, this solution was not accepted by the Council of States. The concern was that a complete abolition of the time limits for lodging complaints would lead to considerable legal uncertainty and practical problems in providing evidence.

    In the end, Parliament agreed to leave the period for lodging complaints at sixty days and not to extend the limitation period of five years. A balanced model that guarantees both legal certainty and protection for building owners.

    Better protection for buyers and builders
    Another key point of the reform is the protection of property buyers and builders from liability clauses that have often been interpreted to their disadvantage in the past. In many contracts, liability for construction defects was passed on to subcontractors, which put private developers in the difficult position of having to enforce their claims directly against the subcontractors. With the new regulation, the right to rectify defects may no longer be contractually excluded in future, which represents a considerable advantage for private construction projects.

    Increased protection in the event of unpaid invoices
    The issue of double payment obligations for building owners is also particularly controversial. If general contractors do not pass on payments to their subcontractors, building owners run the risk of them asserting their builder’s lien. Parliament decided that building owners can now avert the lien by means of a bank guarantee. However, the default interest only has to be covered for a period of ten years – a considerable relief for construction projects.

    The reform of sales and work contract law represents an important step towards greater legal certainty and protection in the construction industry. The extension of the time limits for notifying defects and the strengthening of the position of builders and buyers strike a balance between the interests of the construction industry and the needs of private builders. The bill will now return to the Council of States for final finalisation.

  • Roche opens new centre for pharmaceutical research

    Roche opens new centre for pharmaceutical research

    A significant milestone has been reached at Roche’s headquarters in Basel. The inauguration of the new Pharma Research and Early Development Centre (pRED). The centre, which offers 1,800 state-of-the-art workstations for laboratory and office work, brings together experts from various fields of research. The aim is to increase the efficiency of research and development through close collaboration. Federal Councillor Guy Parmelin also attended the opening ceremony, which emphasises the national importance of this project.

    With the new pRED Centre, Roche is pursuing a clear vision of pooling expertise from areas such as chemistry, biology and data science in order to drive forward pioneering innovations. Thomas Schinecker, CEO of the Roche Group, emphasised the central role of the centre in the company’s global innovation network. “This centre will not only improve the efficiency of our research, but also help us to achieve the greatest possible benefit for patients worldwide.”

    Investing billions in the future
    The investment in the pRED Centre is part of Roche’s long-term commitment to the Basel site. Since 2009, the company has invested 4.6 billion Swiss francs in the expansion of the site. With the new four buildings – including two high-rise laboratory buildings, an office complex and a congress centre – Roche is sending another strong signal for the future.

    And this is just the beginning: a further 1.2 billion Swiss francs are being invested in modernising and expanding the site, which will strengthen Basel’s role as a global centre for pharmaceutical research and development in the long term.

    With the opening of the new pRED Centre, Roche is not only investing in its own innovative strength, but also in strengthening Basel as a business location. This billion-euro investment is a clear signal that the pharmaceutical company intends to further expand its leading role in global research and development – a significant step both for the industry and for the region.

  • Climate fund supports sustainable building and heating projects in Winterthur

    Climate fund supports sustainable building and heating projects in Winterthur

    According to a press release, the Stadtwerk Winterthur climate fund has awarded a total of CHF 55,000 in funding to two companies. This fund has been supporting regional and local projects for CO2 reduction, energy efficiency and renewable energies in line with the city of Winterthur’s energy and climate policy since 2007.

    Roto Re-Use from Winterthur will receive CHF 35,000. The company, which is currently being founded, sees itself as a Swiss-wide centre of excellence for a circular construction industry. It develops workshops that show how the circular economy can be implemented in the construction industry. Specialists learn directly on the construction site how components can be dismantled and reused and how reuse must be planned.

    According to the Climate Fund, the construction industry in particular has great potential for CO2 savings, citing the Environment Switzerland 2022 report, according to which construction is responsible for more than 80 per cent of waste. In addition, building materials are responsible for around 10 per cent of Swiss greenhouse gas emissions.

    The company Trinovent from Oberengstringen will receive CHF 20,000 from the climate fund. It is developing an ice storage heating system for single-family homes. Trinovent is developing an ice storage heating system for single-family homes. The company is combining the proven technologies of air or water heat pumps with ice storage. The funding project is intended to help find customers for the new heating system in Winterthur and develop the prototype into a series model.

  • Taxes above the national average

    Taxes above the national average

    The Tax Burden Monitor 2024 confirms once again that the canton of Zurich is a high-tax canton when it comes to corporate taxes. Only the canton of Bern taxes corporate profits more heavily. This makes Zurich less attractive for companies, especially in comparison to neighbouring cantons with lower taxes, such as Schwyz and Zug, which also benefit from their geographical proximity to Zurich.

    Attractive tax policy
    In contrast to corporate taxes, the canton of Zurich performs significantly better in terms of income and wealth taxes for private individuals. Medium incomes of between CHF 60,000 and CHF 200,000 are taxed moderately in a cantonal and municipal comparison. Zurich’s municipalities occupy top places in this category. Middle-income couples and families in particular benefit from the tax structure.

    Around a third of Zurich’s municipalities recently lowered their tax rates. Nevertheless, the canton lost one place in the national comparison and is now in 13th place. Property taxes remain stable and rank 10th in the national comparison – below the Swiss average.

    Zurich has lost tax attractiveness for companies since 2006
    Since 2006, the canton of Zurich has dropped twelve places in the ranking of corporate tax burdens. While other cantons have lowered taxes for legal entities, in some cases significantly, Zurich has remained relatively rigid. As a result, competitor locations Basel-Stadt and Geneva, which are traditionally attractive for international companies, now have significantly lower tax burdens. A direct comparison with the cantons of Schwyz and Zug is also particularly critical for Zurich, which, unlike Zurich, benefit greatly from their proximity to the business centre without having to bear its tax burden.

    Zurich remains internationally attractive
    The situation is different in an international comparison. Despite the high national tax burden, Zurich remains competitive in the global competition to attract companies. Countries such as the USA and many Western European states (with the exception of Ireland) impose a much higher tax burden on their companies. Switzerland has been able to maintain this competitiveness even in times of economic crisis, although many OECD countries have increased their tax pressure in recent years.

  • Falling electricity prices in 2025

    Falling electricity prices in 2025

    The Swiss Federal Electricity Commission has published its calculations for electricity tariffs in 2025. A typical Swiss household with a consumption of 4,500 kWh will pay 29 centimes per kilowatt hour in the coming year, which corresponds to a reduction of 3.14 cents/kWh compared to 2024. This price reduction will result in an annual saving of 141 francs and reduce the electricity bill to a total of 1,305 francs.

    The reductions affect both grid costs and energy tariffs. While the grid costs for a typical household will fall by 4 per cent from 12.71 cents/kWh to 12.18 cents/kWh, the energy tariffs will fall by 12 per cent to 13.7 cents/kWh. Charges to local authorities (1 Rp./kWh) and the grid surcharge (2.3 Rp./kWh) will remain unchanged. There are signs of similar reductions for small and medium-sized companies.

    Fluctuating prices depending on the grid operator
    Electricity tariffs vary greatly depending on the grid operator. This is mainly due to differences in in-house production and procurement strategies. Some grid operators that focus more on long-term procurement are better able to compensate for short-term price fluctuations, but bear higher costs over longer periods. The differences in energy procurement strategies lead to considerable price differences between the regions.

    Reasons for the price reductions
    The more stable wholesale electricity prices are one of the main reasons for the easing of tariffs. Following the significant price increases in 2023 and 2024, wholesale prices are currently quoted at around EUR 90/MWh, which represents a decrease compared to the previous year’s EUR 150/MWh. This market easing will now have a gradual impact on energy tariffs.

    Another factor is the reduction in costs for the winter reserve. While these were still at 1.2 Rp./kWh in 2024, they will fall to 0.23 Rp./kWh in 2025. The return on capital for the grid, the so-called WACC, has also fallen slightly, which also has a cost-reducing effect.

    Procurement strategies and own production as key
    The tariffs in the basic supply are strongly influenced by the production and procurement portfolio of the energy suppliers. In-house production and the timing of electricity procurement are decisive factors. Grid operators that spread their procurement strategies over longer periods of time are better able to cushion price fluctuations on the wholesale market. The level of in-house production also influences the production costs, which are sometimes lower than market prices.

    However, grid costs remain relatively high due to the high market prices, as they are also affected by electricity price-dependent components such as active power losses and ancillary services (AS). Swissgrid provides these ancillary services for the short-term stability of the system and passes the costs on to the grid operators, who in turn charge them to end consumers.

    Transparency for consumers
    ElCom has published the 2025 electricity tariffs for all municipalities and grid operators. These can now be viewed on the website www.strompreis.elcom.admin.ch and offer consumers the opportunity to compare tariffs and find out about the development of electricity prices.

  • Expert group ignores referendum and constitutional mandate

    Expert group ignores referendum and constitutional mandate

    In order to reduce the burden on the federal budget, a group of experts commissioned by the Federal Council has examined a series of cost-cutting measures. One particularly controversial point is the cancellation of further contributions to the Fonds de Roulement. This fund offers low-interest loans to non-profit housing developers for the creation and renovation of housing and thus plays a central role in combating the housing shortage in Switzerland.

    This proposal is in direct contradiction to the 2020 referendum, in which the Swiss people voted in favour of a framework credit of CHF 250 million until 2029 to strengthen the fund. The proposal to save on housing promotion has triggered a wave of outrage.

    Disregard for the referendum and the housing shortage
    For Eva Herzog, member of the Council of States and President of the Swiss Association of Housing Cooperatives, this savings proposal is simply unacceptable: “This proposal disregards the tense situation on the housing market and the housing shortage action plan, which provides for the strengthening of housing promotion. And it contradicts a clear referendum.” In fact, the population rejected the popular initiative “More affordable housing”, but supported the indirect counter-proposal, which strengthened the Fonds de Roulement as a key instrument for promoting affordable housing.

    In the eyes of many critics, if the federal government were to implement the expert group’s proposal, it would be going against the will of the people. “That would be a breach of the agreement and a violation of good faith,” warns Herzog.

    The constitutional mandate to promote housing
    In addition to disregarding the referendum, the savings proposal also raises constitutional concerns. Article 108 of the Federal Constitution obliges the federal government to actively promote non-profit housing construction. However, the group of experts argues that this support should primarily be provided by the cantons and cities. A position that many consider to be incompatible with the current housing shortage in numerous Swiss cities.

    “The federal government cannot shirk its responsibility here – especially not in the current situation, where there is an acute housing shortage in many places,” emphasises Eva Herzog. The promotion of non-profit housing construction is a national task that should not be shifted onto the shoulders of the cantons alone.

    Growing housing shortage and the role of the Fonds de Roulement
    The housing shortage in Switzerland has become one of the most pressing problems of recent years. The pressure on the housing market is constantly increasing, particularly in urban centres. The Fonds de Roulement offers important support to counteract the shortage. It enables non-profit housing developers to create new living space, renovate existing buildings and acquire land through low-interest loans.

    “Cancelling this support would not only delay the construction of new flats, but also jeopardise the renovation of existing buildings,” warns Herzog. The fund is an indispensable instrument for ensuring socially responsible and sustainable housing construction, which is urgently needed.

    Criticism of the proposed savings
    The proposed savings are met with disapproval in many parts of society. Housing cooperatives and other non-profit housing developers are warning of the long-term consequences that such a savings proposal would entail. The Swiss Association of Housing Cooperatives is therefore calling on the Federal Council not to implement the cost-cutting measure in housing promotion.

    “It is crucial that the federal government recognises its responsibility and does not leave the promotion of non-profit housing construction to the cantons and cities alone,” Herzog continued. Adopting the savings proposal would further exacerbate the already tense situation on the housing market and particularly affect those who are dependent on affordable housing.

    A controversial savings proposal with far-reaching consequences
    The expert group’s proposal to make savings on housing subsidies is causing controversy. It not only contradicts the 2020 referendum, but also the federal government’s constitutional mandate to promote non-profit housing construction. At a time of increasing housing shortages, it would be a risky signal to cut support for affordable housing. Criticism of this proposal is loud – and there are growing calls for the savings proposal not to be implemented.

  • Sustainability standard introduced for Swiss real estate funds

    Sustainability standard introduced for Swiss real estate funds

    The Swiss real estate sector is responsible for around a quarter of all CO2 emissions. In order to make the situation and market behavior clearer, the Swiss Sustainable Finance Association has now developed a standard questionnaire on the sustainability of real estate funds. This is intended to make real estate trading more transparent and lead to reliable decisions with regard to sustainability, according to a press release. Investors can answer questions on sustainability in a standardized way and thus increase the comparability of offers. The resulting transparency is of interest to banks and asset managers as well as potential investors. The questionnaire also provides information on compliance with ESG criteria (environmental, social and governance) in the real estate sector.

    “A standard questionnaire increases comparabilityand reduces the workload for everyone involved,” Sabine Döbeli, CEO of Swiss Sustainable Finance, is quoted as saying in the press release. “At the same time, regular further development involving all players in the real estate investment value chain can ensure that the questionnaire is adapted to current developments and always contains the most relevant information.” (more…)

  • Portfolio expanded with third green bond

    Portfolio expanded with third green bond

    Zug Estates Holding AG placed its third green bond on August 26 with payment on September 30, the real estate company specializing in the development, marketing and operation of properties in the Zug region announced in a press release. The bond, which is aimed at institutional investors, has a volume of 100 million Swiss francs, a term of seven years and an interest rate of 1.65 percent.

    Zug Estates had already issued its first green bond in 2019. In 2022, the real estate company then switched its bond portfolio entirely to green bonds. Green buildings currently account for around 95% of Zug Estates’ total portfolio. Properties are classified as green buildings if they have less than 1 kilogram of greenhouse gas emissions per square meter of energy reference area.

    In future, Zug Estates wants to be able to offer other types of green financial instruments in addition to green bonds. To this end, the real estate company has expanded its green bond framework to include a green finance framework. As part of the expansion, Zug Estates has obtained a second opinion from International Shareholder Services (ISS) Corporate Solutions. The agency, which specializes in ESG research and ratings, awarded the real estate company a C rating and thus prime status on August 23.

  • Residential construction remains under pressure

    Residential construction remains under pressure

    The main construction industry in Switzerland achieved stable turnover of CHF 11 billion in the first half of 2024, which corresponds to the previous year’s level. Despite this stable result, there are some worrying trends in the details. Incoming orders have fallen slightly, which has hit residential construction particularly hard. At CHF 3.6 billion, turnover in residential construction was CHF 100 million or 3 per cent below the figure for the same period last year. Commercial construction was also unable to decouple itself from the weak economy and recorded a decline of 6 per cent.

    Public construction gains momentum
    By contrast, a positive trend can be seen in public construction. Driven by population growth, public civil engineering increased by 3 per cent, while public building construction recorded an increase of 1 per cent. Private civil engineering also experienced a pleasing development with an increase of 5 per cent. This growth reflects the increasing demand for infrastructure such as railways, roads, hospitals and schools, which must be met by the growing population. However, there is still a considerable need to catch up, particularly in the area of motorways. This is illustrated by the many hours of congestion on motorways and roads. The Swiss Association of Master Builders (SBV) therefore supports the STEP proposal to optimise the motorway network, which will be put to the vote in November 2024.

    Difficult times for residential construction
    Residential construction continues to face major challenges. In the second quarter of 2024, construction activity fell by 10 per cent, while new orders fell by 7 per cent compared to the same quarter of the previous year. Despite a slight increase in residential construction applications in the first half of 2024, a recovery is not expected until the second half of 2025 at the earliest. The SBC expects only around 40,000 new flats to be built in 2024 as a whole, although at least 50,000 would be needed to meet demand. The vacancy rate has continued to fall, further increasing the pressure on the housing market.

    Outlook: Uncertainties remain
    Forecasts for the 2024 construction year remain cautious. Total turnover in the main construction industry is expected to be CHF 23 billion, which corresponds to a decline of 1.6 per cent compared to the previous year. The construction index predicts that construction activity will also stagnate in the first half of 2025, similar to 2023 and 2024, with turnover of CHF 11 billion again.

    The Swiss construction industry faces the challenge of meeting the complex needs of the market while at the same time coping with economic pressure. It remains to be seen whether the measures to revitalise residential construction and infrastructure expansion will bear fruit in the long term.

  • Sustainable properties: fit for the future

    Sustainable properties: fit for the future

    Residential and commercial properties need energy – and a lot of it. The Swiss building stock is responsible for 25 per cent of Switzerland’s final energy requirements and a third of domestic CO2 emissions. This is why property also plays a key role in the energy transition. However, striving for greater sustainability in the building sector not only makes sense from an ecological perspective, but also from an economic one. Investments to increase energy efficiency and switch from fossil fuels to renewable energies have a value-enhancing effect. And sustainable buildings are marketable in the long term. Migros Bank offers corporate customers a free analysis to identify the optimisation potential in their property portfolio.

    Free analysis of property portfolios
    A sustainable property provides long-term ecological, social and economic benefits. What this means in concrete terms for an individual residential property must be assessed on a case-by-case basis. Ecological sustainability is generally about increasing the energy efficiency of the building and reducing emissions.

    Together with customers, Migros Bank analyses residential properties in terms of sustainability, yield, potential and marketability. Together with property experts, a tool has been developed for this purpose. This shows which investments have an impact on savings and costs resulting from these investments and what CO2 emissions can be expected from the property portfolio. Energy-efficient refurbishment or early replacement of heating systems often have a positive impact on profitability.

    The opportunities of sustainable buildings
    If the energy efficiency of buildings increases, energy costs fall. This is directly noticeable. Of course, the investments – for example in the renovation of the building – must be amortised. However, expensive energy costs mean that the amortisation period is short in many cases. Increased energy efficiency can also increase the market value of the property. The increase in attractiveness is also noticeable for rental properties. The demand for sustainable buildings with low ancillary costs is high. Tenants are prepared to pay more for sustainable living space.