immo!nvest – Die Plattform für Standorte und Immobilien

Category: Business

  • Development of asking rents varies

    Development of asking rents varies

    The monthly rental index compiled by the digital real estate marketplace Homegate in collaboration with Zürcher Kantonalbank closed at 128.7 points in July. Compared to the previous month, the index rose by 0.2 percent, Homegate reported in a press release. A year-on-year increase of 5.2 percent was observed across Switzerland.

    In a year-on-year comparison, rents rose in all cantons, Homegate reports. However, the real estate marketplace’s experts have observed different developments month-on-month. For example, rents in the cantons of Uri, Glarus, Ticino and Thurgau rose by between 1.9 and 0.6 percent. Rents were lower than in June in around a third of these cantons. The sharpest decline was observed in Nidwalden with a drop of 1.2%. In the other cantons, asking rents remained stable compared to June.

    The eight Swiss cities included in the index also showed different trends in a month-on-month comparison. For example, rents in Lugano and Zurich rose by 1.0% and 0.7% respectively in July. At the same time, asking rents in Lucerne and Geneva fell by 1.5% and 1.2% respectively. Year-on-year, rents rose in all eight cities. The most significant increases were recorded in Lucerne and Zurich, at 8.1% and 7.9% respectively.

    Homegate is a division of SMG Swiss Marketplace Group AG. This combines the digital marketplaces of TX Group, Ringier and Mobiliar.

  • Rolex invests one billion francs in new giant factory in Bulle

    Rolex invests one billion francs in new giant factory in Bulle

    The world-famous luxury watch manufacturer Rolex is planning a massive expansion in western Switzerland. A gigantic production facility is to be built in Bulle, in the canton of Fribourg, by 2029. Covering an area of 104,000 square metres – the equivalent of almost 15 football pitches – Rolex plans to produce luxury watches from 2029 to meet the growing demand for its products. The new factory is expected to create 2,000 jobs and thus make a significant contribution to the regional economy.

    Land sale approved
    The General Council of Bulle has approved the sale of the construction site to the Rolex Group by a large majority. Rolex is investing a total of one billion francs in the project and paid 31.4 million francs for the 100,000 square metre site. The planning application has now been submitted and the first visualisations of the planned buildings have been published.

    Innovative construction concept and sustainability
    The new plant will consist of four production buildings connected by a central building. In addition to the administration, this central area will also house catering facilities as well as meeting and rest areas. A striking head-end building at the southern end of the site will house the main entrance.

    Rolex attaches particular importance to environmental friendliness and sustainable design. The factory is to achieve the highest standard of the British Breeam label – a first for an industrial building in Switzerland. The buildings will be arranged so that they are integrated into a park that serves as protection from emissions from the nearby motorway.

    Fifth Rolex production site
    With the new site in Bulle, Rolex is expanding its already highly integrated production chain. The luxury watch manufacturer already operates production sites in Geneva, Chêne-Bourg, Plan-les-Ouates and Biel. Most of the watch components, from movements and cases to dials and bracelets, are produced in-house at these sites.

    Temporary solution in Romont
    In order to expand production capacity before 2029, Rolex will temporarily set up a factory in Romont. Around 250 to 300 employees are to be employed there from the beginning of 2025, most of whom will be newly recruited and trained. These employees will move there once the factory in Bulle is completed.

    With the new factory in Bulle, Rolex is strengthening its position as one of the world’s leading luxury watch manufacturers and investing in the future of the Swiss production site.

  • Zug Estates places third green bond

    Zug Estates places third green bond

    Zug Estates Holding AG has taken another significant step in its sustainable finance strategy. Following the successful launch of green bonds in 2019 and the complete conversion of the bond portfolio to green bonds in 2022, the company has now placed another green bond for CHF 100 million. The issue, which will be paid out on 30 September 2024, has a coupon of 1.65% and a term of seven years. This increases the proportion of unsecured bonds in relation to all interest-bearing financing to around 45%.

    More flexibility for sustainable investments
    In the run-up to the issue, Zug Estates expanded its existing Green Bond Framework into a Green Finance Framework. This innovation enables the company to access other green financial instruments in addition to green bonds. Zug Estates is thus expanding its flexibility in financing sustainable projects and sending a strong signal in favour of the future of green investment.

    Under the new, strict selection criteria, buildings and sites are classified as green if they either emit less than 1 kg of CO2 equivalents per square metre of energy reference area or have prestigious sustainability certificates such as BREEAM, DGNB/SGNI, SNBS or Minergie. Despite these demanding requirements, 95% of Zug Estates’ entire portfolio can be categorised as green properties – proof of the company’s consistent strategy in the area of ecological sustainability.

    The Suurstoffi showcase for sustainable real estate
    A large proportion of Zug Estates’ green properties are located on the Suurstoffi site. This ultra-modern, almost CO2-free development site has also been allocated to the existing and newly launched green bond. As at 30 June 2024, the market value of the Suurstoffi properties earmarked for the green bonds is CHF 418.4 million. This site is an outstanding example of the implementation of Zug Estates’ sustainable development strategies and sets new standards in the field of sustainable construction and operation of real estate.

    Confirmation from international rating agencies
    Zug Estates has received high recognition for its green finance framework from ISS Corporate Solutions, one of the world’s leading ESG research and rating agencies. This Second Party Opinion (SPO) strengthens investor confidence in the company’s sustainability strategy. In addition, Zug Estates was awarded a “C” rating and “Prime” status by ISS (International Shareholder Services) on 23 August 2024. This underlines the high value Zug Estates places on environmental, social and governance-based sustainability.

    Successful placement of the green bond
    The placement of Zug Estates’ new green bond met with great interest from institutional investors. They particularly appreciate the fact that the funds are invested directly in properties that meet the highest sustainability requirements and are already operated almost entirely CO2-free. UBS AG and Basler Kantonalbank acted as joint lead managers for the issue. Admission to trading on the SIX Swiss Exchange has been applied for, which further increases the attractiveness of the green bond.

    Sustainability as a strategy for the future
    With the placement of its third green bond and the expansion of its green finance framework, Zug Estates is once again demonstrating its leading role in the field of sustainable property financing. The company shows how a consistent ecological focus can not only increase the value of the portfolio, but also make an important contribution to reducing CO2 emissions and promoting sustainable development. Zug Estates is thus setting a new standard for the entire property sector.

  • Zurich Investment Foundation plans capital increase

    Zurich Investment Foundation plans capital increase

    The Zurich Investment Foundation is planning to expand its ZAST Real Estate Residential Switzerland investment group. To this end, around CHF 300 million is to be raised from pension funds domiciled in Switzerland between 1 and 30 October. Existing investors have preferential rights, Zurich Invest Ltd. announced in a press release. The Zurich Insurance Group subsidiary will manage the investment foundation.

    Zurich Investment Foundation intends to use the new funds for the acquisition of 19 properties with a total residential share of 90 per cent. Around two thirds of the properties are located in Geneva and Lausanne, as well as properties in Zurich and Berne. In addition to its good location, the portfolio offers attractive rental potential, according to the press release. The issue price for units in the new portfolio will be the net asset value as at 31 October 2024 plus a 2.5 percent issue premium.

  • Secure your ticket to the 17th Swiss Finance and Real Estate Congress in Zurich now

    Secure your ticket to the 17th Swiss Finance and Real Estate Congress in Zurich now

    To mark its 30th anniversary on 20 November 2024, IAZI AG is presenting a varied and inspiring congress programme and is once again proving to be a central platform for expertise on the relevant topics in the finance and real estate industry. Guests will have the unique opportunity for exclusive networking with leading experts and decision-makers from closely interlinked sectors and the chance to gain a valuable knowledge advantage.

    Global challenges such as climate change and economic inequality require innovative approaches and collaborative action in an increasingly interconnected world. Linking global strategies and local initiatives makes sustainable and effective solutions possible – this will be the focus of the 17th Swiss Finance and Real Estate Congress.

    Under the motto “Global Perspectives, Local Solutions”, high-calibre speakers will highlight trends and forecasts on topics such as the global security situation, ESG strategies and urban architecture.

    Keynote speakers include Christof Franzen, journalist and SRF special correspondent, who will take a look at the global security situation with a focus on Russia and Switzerland, and Jens Korte, renowned business journalist and stock market expert, who will analyse the impact of the US elections.
    Dr Anna Braune, Head of Research and Development at the German Sustainable Building Council, DGNB e.V., will address the topic of sustainability in the construction industry and present future-proof concepts for new buildings.
    Renowned futurologist Oona Horx-Strathern will present visions for a new urban architecture and extreme sportswoman and entrepreneur Anja Blacha will provide inspiration for an ascent that combines extreme sports and entrepreneurship.

    This dialogue on the future will be rounded off with high-quality information and precise data from the Swiss real estate market to support the daily business of real estate professionals. Prof. Dr Donato Scognamiglio, Co-Founder and Chairman of the Board of Directors of IAZI AG, will explain the latest figures, trends and forecasts with regard to Swiss real estate.

    You can find all the details of the programme here: immokongress.ch

  • Grocery stores record the most start-ups

    Grocery stores record the most start-ups

    After years of store closures, CRIF AG reports positive news from the bricks-and-mortar retail sector: according to a study, more stores have been opened in the past ten years than have disappeared. According to the study, 32,275 new stores opened, while 26,926 had to close. This results in an increase of 5,349 stores and growth of 16.6 percent overall. This is according to a press release from the business information agency.

    Online retail achieved the highest growth rate with net growth of 42.4%. A “real growth spurt” was recorded during the coronavirus pandemic in 2020 and 2021 in particular, according to the report. In 2022, the number of new start-ups fell by more than 30%, while new online retailers were added again in 2023.

    In terms of sectors, food suppliers (2547 new stores) are in the lead. They are followed by clothing stores (2,56), other food retailers (1846) and magazine stores (1752).

    The greatest loss of stores is in consumer electronics and computers, bakeries, butchers and clothing stores.

    The CRIF study took into account all retail businesses and online stores entered in the commercial register that were founded and deleted during the ten-year period.

  • Neur.on AI gewinnt Swiss Fintech Award 2024

    Neur.on AI gewinnt Swiss Fintech Award 2024

    Fribourg-based AI start-up Neur.on AI, founded by Paula Reichenberg, emerged as the winner in the “Early-Stage Start-up of the Year” category at the Swiss Fintech Awards 2024. Neur.on AI has developed a specialized, AI-based translation solution that focuses on financial documents. This solution offers a more cost-effective and accurate alternative to existing translation services, addressing a market worth 10 billion dollars in the financial and legal sectors. In recognition of her innovation, Paula Reichenberg received prize money of 36,000 Swiss francs.

    In addition to Neur.on AI, Climada Technologies was also in the running for the award. Climada offers financial service providers transparent and regulatory-compliant reporting on climate risks.

    GenTwo wins in the Growth Stage category
    The Zurich-based company GenTwo came out on top in the “Growth Stage Start-up of the Year” category. GenTwo uses innovative securitization and tokenization technologies to enable the assetization of previously inaccessible assets. The company has already created financial products worth 5 billion dollars for over 300 customers in 26 countries. Payrexx, which was also a finalist, offers access to more than 200 payment options via its platform and now counts 60,000 merchants among its customers.

    Johannes “Johs” Höhener honored as Fintech Influencer of the Year
    Johannes “Johs” Höhener was honored as “Fintech Influencer of the Year” for his many years of commitment to the Swiss fintech industry. Höhener has made a significant contribution to the development of the fintech sector in Switzerland, particularly through his work at Swisscom and his involvement in e-commerce at the cantonal banks. His mandates on various boards of directors, including Swiss Stablecoin and daura, have had a lasting impact on the Swiss fintech community.

    The Swiss Fintech Awards, which were launched in 2016, have established themselves as the most important award in the Swiss fintech sector. This year, the outstanding start-ups and personalities were honored at the ninth Swiss Fintech Awards Night in Zurich. A jury of 20 decision-makers selected the winners from over 100 applications.

  • Procimmo expands real estate fund

    Procimmo expands real estate fund

    Procimmo is planning to acquire several properties for its Residential Lemanic Fund. The Renens-based company, which specializes in the development and management of real estate investment products, therefore intends to carry out a capital increase of between CHF 30 million and CHF 40 million at the end of September. The exact amount and the subscription period will be communicated at a later date, Procimmo announced in a press release.

    The Procimmo Residential Lemanic Fund currently has gross assets of around 510 million francs. Three quarters of the capital is invested in real estate in Lausanne and Geneva. Procimmo aims to grow the fund “while preserving its intrinsic qualities”, the company writes.

    Founded in 2007, Procimmo SA operates as a real estate asset manager at its headquarters in Renens as well as in Zurich and Geneva. The company has been part of Procimmo Group AG since 2017. The Zug-based group of companies, which is listed on the BX Swiss, offers investment and services in the real estate sector.

  • Expansion of the range of services through strategic acquisition

    Expansion of the range of services through strategic acquisition

    Pforzheim-based ease GmbH has acquired the Munich-based subsidiary of Helvengo AG. With the takeover of Helvengo GmbH, the insurance company specialising in the property industry intends to expand its range of services, ease announced in a press release. The purchase price was not disclosed.

    Helvengo, which was founded in 2020, specialises in the development of innovative insurance products. The two companies had already jointly developed a building insurance solution based on the Internet of Things (IoT) in 2022. “The IoT-based tariff set a milestone last year,” said Marcel Hanselmann, Managing Director of ease, in the press release. “We are delighted to be actively shaping the future in this area with Helvengo GmbH and to be able to offer our customers an even more attractive portfolio of services.”

    Zurich-based Helvengo AG has been in liquidation since the beginning of August. With ease, the German subsidiary “has had a strong partner at our side from the very beginning, who has played a key role in shaping our vision of data-driven insurance products”, explains Helvengo co-founder Felix Huemer in the press release. “We are convinced that Helvengo GmbH will be able to utilise synergies within the corporate group with ease and continue to expand successfully on the market.”

  • Housing prices develop differently

    Housing prices develop differently

    Anyone looking to buy a condominium had to spend slightly more in July than in the previous month. Specifically, prices for condominiums rose by an average of 0.6 per cent, SMG Swiss Marketplace Group(SMG) reported in a press release on the current Swiss Real Estate Offer Index. The SMG Swiss Marketplace Group combines the digital marketplaces of TX Group, Ringier and Mobiliar.

    By contrast, prices for single-family homes fell by an average of 1.1 per cent in July compared to June. This puts the price level at roughly the same level as at the end of 2023, according to the press release. “For many potential buyers, a single-family home is still difficult to afford despite the recent decline,” Martin Waeber is quoted as saying. According to the Managing Director Real Estate at SMG, buying a condominium with a smaller living space is therefore the only alternative for many. According to Waeber, this is leading to a shift in demand with an impact on the prices of both types of residential property.

    SMG’s property experts observed a 2.2 per cent decline in asking rents across Switzerland in July compared to June. At 3.7 per cent, this was most pronounced in Ticino. Central Switzerland and the greater Zurich region followed with declines of 3.2 per cent each. The smallest decline in asking rents was recorded in north-western Switzerland with an average of 0.5 per cent.

  • Home ownership is becoming more expensive

    Home ownership is becoming more expensive

    Prices for residential property continued to rise in the second quarter of 2024, theSwiss Federal Statistical Office(SFSO) reported in a press release. The residential property price index it collects rose by 1.1% quarter-on-quarter and currently stands at 117.5 points. Year-on-year, the experts at the FSO have observed an increase of 1.4 percent. The index base was fixed at 100 points in the fourth quarter of 2019.

    Prices for condominiums rose by 0.9% quarter-on-quarter and by 1.7% year-on-year. Single-family homes rose by 1.2% quarter-on-quarter and 1.0% year-on-year. The property price index for single-family homes closed the quarter at 118.6 points. Its counterpart for condominiums was slightly lower at 116.5 points.

    According to the FSO experts, prices for single-family homes rose in all types of municipalities during the quarter under review. They observed the strongest increase of 2.3 percent in the category of rural municipalities. In this category, prices for condominiums also rose particularly sharply by 2.7%. In contrast, prices for condominiums in the urban municipalities of a large conurbation fell by 0.3%.

  • Mobimo posts profit increase

    Mobimo posts profit increase

    Mobimo Holding AG achieved an operating result at EBIT level including revaluations of CHF 83.3 million in the first half of 2024, the Lucerne-based real estate company announced in a press release. This corresponds to a year-on-year increase of 63.9 percent. Excluding revaluations, EBIT rose from CHF 60.1 million to CHF 61.3 million. Mobimo attributes this positive development to consistently strong rental success and a strengthened development and promotion business.

    At CHF 65.6 million, net profit including revaluations was 91.5 percent higher than in the same period of the previous year. This was due to a gain from the sale of a non-consolidated stake in Parking Saint-Francois SA in Lausanne. Excluding revaluations, profit increased year-on-year from CHF 43.1 million to CHF 47.8 million.

    At 62.5 million, rental income was 3.0 percent below the previous year’s figure. Excluding special effects of CHF 3 million recognized in the first half of 2023, however, rental income increased by 2.5 percent, Mobimo explains. This leads to growth in net rental income of 2.0 percent on an adjusted basis.

    The value of the real estate portfolio amounted to CHF 3.7 billion at the end of June, compared with CHF 3.6 billion at the end of 2023. In July, Mobimo also acquired six buildings with a total of 41 apartments in Dielsdorf ZH from an institutional investor.

  • Public consultation on the Lucerne agglomeration programme

    Public consultation on the Lucerne agglomeration programme

    The fifth generation of the Lucerne agglomeration programme (AP LU 5G) includes the towns of Sursee and Sempach for the first time, as well as several new municipalities such as Meierskappel and Neuenkirch. This expansion of the perimeter emphasises the increasing importance of regional cooperation in the sustainable development of settlement and transport structures. The focus of AP LU 5G is on coordinating transport development with settlement planning in order to optimally meet the challenges of growth and mobility in the region.

    Key projects through station and bypass
    The key projects of the LU 5G AP are the Lucerne through station and the A2 Lucerne motorway bypass. These major projects financed by the federal government form the backbone of long-term transport planning in the Lucerne region. In addition, accompanying measures and projects are planned by the canton and municipalities, such as the expansion of parking facilities and the creation of continuous bus lanes, in order to further improve the efficiency and flexibility of the transport system.

    Investments in overall transport and walking and cycling
    The LU 5G AP plans extensive investments in transport and settlement development. Overall transport, including important transport hubs such as the expansion of Ebikon railway station, will receive CHF 216 million in funding up to 2031. Pedestrian and bicycle traffic, with measures to optimise the cantonal bicycle network and improve local recreation, will also be given high priority. Projects in this area will be supported with a total of CHF 129 million.

    Public participation and future steps
    Public participation offers municipalities, experts and interested members of the public the opportunity to play an active role in shaping the AP LU 5G. The comments and suggestions, which can be submitted until 1 October 2024, will be incorporated into the revision and finalisation of the programme. An information event will be held in Rothenburg on 2 September 2024 to explain the draft and the planned measures in detail. Registrations are possible until 28 August 2024.

    The programme will be reviewed and adjusted once the public consultation has been completed. Adoption by the government is planned for 2025, before the AP LU 5G is submitted to the federal government for review.

  • Holcim posts record high profitability

    Holcim posts record high profitability

    Holcim generated sales of 12.81 billion Swiss francs in the first half of 2024, the globally active Zug-based building materials group announced in a press release. This corresponds to a year-on-year decline of 1.9 percent. In local currencies, growth of 1.6 percent was achieved.

    The recurring operating result at EBIT level increased by 8.1 per cent year-on-year to CHF 2.21 billion. The corresponding margin increased from 15.6 to 17.2 per cent. A record-high margin of 23.2 per cent was even achieved for the second quarter of 2024.

    Group profit before impairments and disposals rose by 7.5 per cent to CHF 1.38 billion. By contrast, net profit fell by 3.4 percent to CHF 1.22 billion. In the half-year under review, Holcim made eleven acquisitions and sold four parts of the Group.

    Holcim can also point to successes in terms of sustainability. For example, CO2 emissions in relation to sales were 7 per cent lower in the reporting period than in the previous year. In addition, Holcim’s low-emission cement ECOPlanet already accounted for 26 percent of Group-wide cement sales. The share of low-emission concrete ECOPact reached 28 percent. At the end of 2023, the share of the two sustainable products was still 19 percent each. “Our leading sustainable construction solutions – from the low-CO2 concrete ECOPact to the energy-efficient Elevate roof systems – make us the partner of choice for major projects, such as in the infrastructure sector or in the construction of data centres,” Holcim CEO Miljan Gutovic is quoted as saying in the press release.

  • Multi-family houses on the upswing, office properties stagnating

    Multi-family houses on the upswing, office properties stagnating

    Rising prices for multi-family homes recorded in Q2 2024. The largest quarter-on-quarter increase was recorded in Eastern Switzerland (2.0%), followed by Basel and the Alpine region (1.7% each) and Jura (1.5%). Only in southern Switzerland did prices stagnate (-0.3%).

    Stagnation in office property prices
    In contrast, prices for office properties in Switzerland showed a minimal decline of 0.2% in the second quarter of 2024 compared to the previous quarter, indicating widespread stagnation. Compared to the same quarter of the previous year, however, prices rose by 4.0 per cent.

    However, the price trend varies greatly from region to region: while prices in southern Switzerland (-4.9%), Zurich (-2.6%) and eastern Switzerland (-0.5%) have fallen compared to the previous quarter, areas such as Lake Geneva ( 4.3%), Basel ( 2.6%) and the Central Plateau ( 1.9%) are showing an upward trend.

    Regional trends and their significance
    The regional differences in property price trends reflect the specific economic and demographic conditions. Office properties are benefiting from higher demand, particularly in economically strong regions such as Lake Geneva and Basel. This indicates that these locations remain attractive for companies.

    The continuing rise in prices for apartment blocks, particularly in eastern Switzerland, Basel and the Alpine region, shows that demand for residential property in these areas remains strong. These trends are an indicator of a robust property industry in Switzerland, despite regional differences and temporary price stagnation in certain segments of the market.

  • Schindler operates more profitably

    Schindler operates more profitably

    Schindler generated global sales totaling 5.59 billion Swiss francs in the first half of the 2024 financial year, the elevator manufacturer from the canton of Lucerne reported in a press release. This corresponds to a year-on-year decline of 2.3 percent. This is due to negative foreign currency effects: In local currencies, sales were 1.4 percent higher than in the previous year.

    At CHF 618 million, the operating result at EBIT level was 2.7% higher than in the previous year. The corresponding margin rose from 10.5 to 11.0 percent. “We have been able to continuously improve our margins for six consecutive quarters and have kept our promise to become more profitable,” said Silvio Napoli, Chairman of the Board of Directors and CEO of Schindler, in the press release. “Strengthening our competitiveness is and remains crucial in this market environment.”

    Schindler reported a net profit of 494 million Swiss francs in the half-year under review, with a profit margin of 8.8 percent. In the first half of 2023, net profit of CHF 463 million was realized.

    For the current year, Schindler expects revenue growth in the low single-digit range in local currencies. The EBIT margin is to be maintained at 11 percent. Schindler is planning restructuring costs of CHF 80 million for further improvements in organizational efficiency.

  • Construction investment increased slightly in 2023

    Construction investment increased slightly in 2023

    Construction investment in Switzerland rose by 0.2 per cent in nominal terms in 2023 compared to the previous year. According to a press release, investments in building construction fell by 0.3 per cent and those in civil engineering increased by 2.7 per cent. Compared to the previous year, 2.5 per cent less was invested in new construction projects and 4.4 per cent more in renovation projects. These are the provisional results of the construction statistics from the Federal Statistical Office(FSO).

    Total construction expenditure, i.e. construction investment plus public maintenance expenditure, increased by 0.3 per cent in 2023, although a price-adjusted decline of 2.5 per cent was recorded.

    Public clients – the federal government, cantons and municipalities – increased investment in civil engineering by 3.9% and in building construction by 8.5%. By contrast, private clients spent less on civil engineering (-2.3%) and building construction (-1.9%) in 2023.

    A decline of 2.5 per cent was recorded for investment in new construction. Private clients spent 4.8 per cent less on new construction projects. In contrast, investment in conversions increased by 4.4 per cent.

    In addition to private renovation activity, which increased by 3.9 per cent, the public sector also invested more in new buildings (6.9 per cent) and renovations (5.2 per cent) compared to the previous year, according to the FSO press release.

  • Property fund raises 610 million francs

    Property fund raises 610 million francs

    Swiss Life Asset Managers has successfully completed a capital increase for its Swiss Life REF (CH) ESG Swiss Properties property fund. According to a statement from the asset manager of the Swiss Life Group, around CHF 610 million was raised in the largest capital increase of a listed Swiss real estate fund to date. This gives Swiss Life REF (CH) ESG Swiss Properties a market capitalisation of around CHF 2.5 billion and makes it one of the five largest listed real estate funds in Switzerland.

    Swiss Life Asset Managers intends to use the new funds to purchase a property portfolio worth around CHF 700 million. Another portion of the funds will be invested in the renovation and densification of existing residential buildings. The company also plans to reduce its debt ratio to around 23 per cent.

  • Housing market loses liquidity

    Housing market loses liquidity

    The number of rental flats advertised on the most important property portals fell by 13 per cent year-on-year between April 2023 and March 2024 to 340,000 advertisements, according to the Swiss Real Estate Institute, SVIT Switzerland and the Swiss Homeowners Association(HEV) in their latest online flat index. “Tenants are staying in their flats because they cannot find new ones at comparable rents, which in turn reduces the supply,” they say. The property experts from the three organisations have identified a decline in the supply of small to medium-sized affordable flats in particular. In contrast, the supply of large flats has increased.

    In the reporting period, around 625,000 relocations were counted across Switzerland, which is 75,000 fewer than in the same period last year. According to property experts, this lock-in effect was reinforced by the fact that existing rents rose less sharply than asking rents during the reporting period. As a result, the housing market is losing liquidity.

    However, despite the reduced supply of properties, advertising times for rental flats have only shortened slightly. It has therefore not become more difficult to find a new flat, the property experts explain. However, interested parties would probably have to dig deeper into their pockets or reduce the amount of space they use.

    Rising rents are leading to a reduction in living space per capita, explains study director Peter Ilg from the Swiss Real Estate Institute. “This leads to less of a housing shortage in cities, and less living space consumption per capita achieves the universally desired internal densification.”

  • Marketplace for commercial property

    Marketplace for commercial property

    Maison (Schweiz) AG has raised a “substantial six-figure sum” in a financing round, the company specialising in the marketing of office and commercial space announced in a post on LinkedIn. The financing of the maison.work marketplace has thus been secured, it continues. The funds raised will be channelled into “technological advances, marketing initiatives and the expansion of the core team”.

    Maison (Schweiz) AG, based in Zurich, has been active in the marketing of office and commercial space for five years . The maison.work marketplace was launched in August last year. Commercial properties ranging from offices, coworking spaces and shared offices to production facilities, warehouses and retail space are offered here.

  • Housing affordability in Switzerland

    Housing affordability in Switzerland

    The average rent burden of all households in Switzerland is between 17% and 27.8%, depending on the definition of the ratio approach. The analysis shows that the assessments of the unaffordability of housing vary considerably depending on the measurement approach chosen: The proportion of households for whom housing is unaffordable ranges from 6.7% to 26%. These differences emphasise the need for a differentiated view of the housing cost burden.

    Influence of income class and household type
    The differentiation of households by income class and household type has a considerable influence on the rent burden. Households in the lowest income quintile spend up to 51% of their disposable income on gross rent, while households in the top quintile pay a maximum of 17.2%. Single households over 65 in the lowest income quintile are particularly badly affected, with a rent burden of up to 64%.

    Ratio approach as the preferred method
    The ratio approach, which measures the housing cost burden as a proportion of income, is considered more practicable than the theoretically optimal residual income approach. The differentiated ratio approach, which varies by income class and household type, allows a more accurate assessment of housing affordability and is more applicable than pure rental cost benchmarks. Granular data on population, income and housing support this differentiated analysis.

    Need for a clear definition and further research
    The concept and objectives of affordable housing planning must be clearly defined. Owners and developers can only create targeted offers if precise thresholds for different household types and income brackets are available. Future research should focus on determining appropriate thresholds and clarifying which specific components of housing costs and income should be considered in the affordability analysis.

    Optimising pricing to encourage investment
    Differentiated pricing based on actual incomes can reduce vacancy and letting risks and encourage investment in new housing. The application of a differentiated ratio approach provides a solid basis for assessing housing affordability in Switzerland and contributes to the creation of sustainable and affordable housing.

  • City Council approves CHF 300 million for CoolCity

    City Council approves CHF 300 million for CoolCity

    On 10 July 2024, the Zurich City Council approved expenditure of CHF 303.7 million from the “Thermal grids” framework credit for the realisation of the CoolCity energy network. This will heat and cool Zurich’s city centre with renewable energy from Lake Zurich and thus represents a significant step towards reducing the city’s CO2 emissions to net zero by 2040.

    Expansion of thermal grids
    The expansion of thermal grids is one of the greatest levers that the city of Zurich has to reduce CO2 emissions. Fossil-fuelled heating systems can be replaced by connecting to district heating and the local gas distribution network can be replaced in stages. The CoolCity energy network, which runs on 100 per cent renewable energy, should make a major contribution to this.

    Network area and utilisation of lake water
    The network area extends from the main railway station to Bürkliplatz, bordered by the Limmat, Sihl and Schanzengraben rivers. It includes the City, Fraumünster Energy Network and Old Town perimeters. In future, the properties there are to be heated and cooled with Zurich lake water, which will enable the greenhouse gas emissions of the connected properties to be reduced to net zero.

    Lake water and energy centres at the heart of the network
    The construction of a lake water and energy centre is necessary to realise the network. Lake water will be collected at a depth of 28 metres at the Zürichhorn and transported to the lake water centre in the Kurt Guggenheim complex via a two-kilometre-long pipeline. There, energy is extracted from the lake water using heat exchangers, which is then channelled to the ewz Selnau substation. The cooled lake water is then returned to the Limmat.

    The heart of the energy network will be the energy centre in the former ewz Selnau substation. Here, the heat and cold obtained from the lake water will be brought to the required temperature using heat pumps and chillers. Following extensive investigations, the ewz Selnau substation has proven to be the ideal location to fulfil the technical and economic requirements.

    Staged construction between 2025 and 2039
    The energy network will be realised in stages between 2025 and 2039 and will be implemented in coordination with the civil engineering department’s road and utility projects. The first energy supply is planned for 2031, whereby the continuous expansion will have largely covered the supply area (excluding the perimeter of the old town) by 2035. The connection of the old town is planned for 2035 to 2039.

    The city council already approved CHF 8.5 million for preliminary investments from the framework credit in 2023. Ewz has started the initial construction work and is building a connecting structure between the CoolCity and Fraumünster energy networks, which will be completed in spring 2025.

    An important step towards climate neutrality
    The CoolCity energy network is a key building block on the path to climate neutrality in the city of Zurich. By using 100 per cent renewable energy from Lake Zurich, the city centre is supplied with sustainable and environmentally friendly heating and cooling, making a significant contribution to reducing greenhouse gas emissions.

  • Affordability of housing in Switzerland

    Affordability of housing in Switzerland

    The affordability of housing is currently at the centre of political and public attention. According to the Federal Statistical Office, prices for the “Housing and energy” category of the national consumer price index rose by an annual average of 9.3 per cent between 2020 and 2023, well above the general inflation rate of 5.6 per cent. This development has intensified political calls for more affordable housing and greater support for tenant households.

    Stable trend in affordability
    The analysis of the affordability of housing costs – i.e. the ratio of housing costs to gross income – shows a stable trend over the last 20 years. Despite rising rents and property prices in real terms, the average burden ratio for Switzerland as a whole has remained constant at around 20 per cent of gross income, well below the limit of 30 per cent that is considered affordable. However, a breakdown of the burden ratio according to various household characteristics indicates a certain deterioration in affordability for mobile households – i.e. households that have recently moved into a flat. Single-person households and households in densely populated regions, which often have a high level of housing consumption, are subject to an above-average burden.

    Costs of subsidised housing already exceed those of subsidised housing
    Subsidised housing is used more frequently than subsidised housing at all levels of government. The estimated direct costs of object support currently amount to around CHF 88 million. In addition, there are indirect costs such as lost interest, rental and building lease income, which are estimated at CHF 560 to 830 million per year. Subject assistance, which mainly takes the form of social welfare and supplementary benefits, already costs CHF 1.7 billion a year. Despite higher overall costs, subject assistance does not prove to be significantly more expensive per supported household compared to object assistance.

    Advantages of subject assistance as a housing policy instrument
    Comprehensive subject assistance could improve the accuracy of Swiss housing policy. The study shows that the “supplementary benefits” model would require state support of around CHF 1.45 billion, with 12.6 per cent of Swiss households being eligible. A model like the one in Basel-Stadt, which only supports households with children, would cost just under CHF 700 million and cover 3.6 per cent of households. These costs would be only slightly higher than those of the current property subsidy.

    Cost-benefit ratio crucial
    The study suggests that the introduction of nationwide subject aid could substantially improve the targeting of housing policy. Although subject aid may be more expensive, it has a better cost-benefit ratio. The possibility of tailoring subsidies to target groups, situations and needs makes subject aid an efficient and effective housing policy instrument. The financial outlay depends heavily on the practical organisation of the system, and fears of possible price pressure on the housing market are only justified under certain conditions.

  • Shareholder communities of GZO AG Spital Wetzikon support reorganisation options

    Shareholder communities of GZO AG Spital Wetzikon support reorganisation options

    The development of reorganisation options for GZO AG Spital Wetzikon is progressing. The shareholder communities continue to support the hospital operations and are prepared to consider financial participation in a reorganisation. They have shown the hospital’s managers what conditions are necessary for such a measure to be considered by the shareholder communities.

    Stable care despite debt restructuring deferral
    Wetzikon Hospital has been in debt restructuring deferral since the beginning of May. As those responsible at GZO AG assure the shareholder communities, hospital operations are running well despite the challenging conditions. Comprehensive emergency and healthcare provision continues to be guaranteed.

    Conditions for financial participation
    The Board of Directors and management of GZO AG have a duty to develop viable solutions for reorganisation. Based on current knowledge, the shareholder communities assume that they will be expected to make a financial contribution to the reorganisation. They have explained to the Board of Directors and the Executive Board of GZO AG which requirements and documents must be met for such a financial contribution. A central point is the existence of an economically viable concept for the Wetzikon hospital of the future. Those responsible for the hospital are currently working intensively on the relevant foundations, although this will take some time due to the complex situation (ongoing hospital operations, new building, etc.).

    Suspension of the appeal to the cantonal government
    GZO AG immediately lodged an appeal with the administrative court against the decision of the cantonal government not to grant financial support to Wetzikon Hospital. Following an in-depth analysis of the situation and careful consideration, the GZO Board of Directors and the mandated experts from the shareholder communities agreed to seek a suspension of the appeal. The shareholder communities have informed the Health Directorate in writing that they support the request for suspension in the interests of the case.

    Future of Wetzikon Hospital
    The shareholder communities have made it clear that they will consider making a financial contribution to the reorganisation of the hospital as soon as a viable economic concept is available. This demonstrates their commitment and support for Wetzikon Hospital in order to ensure continued stable and comprehensive healthcare provision.

  • CKW activates minimum remuneration for solar power

    CKW activates minimum remuneration for solar power

    CKW wants to protect operators of small solar plants from very low market prices, especially in summer, and help them to amortise the plant. To this end, the Axpo subsidiary is already applying the minimum remuneration for solar power planned by the federal government from the billing for the second quarter of 2024, CKW announced in a press release. Operators of solar plants with an output of up to 150 kilowatts are expected to receive a minimum price for their solar power from the beginning of 2025 if the reference market price set by the Swiss Federal Office of Energy is particularly low.

    CKW is basing the amount of the minimum remuneration currently paid on the draft ordinance. It provides for different minimum remuneration per kilowatt hour depending on the size of the plant. In addition, the Lucerne-based energy service provider also voluntarily acquires a guarantee of origin for solar power. This amounts to 2 centimes per kilowatt hour for small solar plants and 1 centime per kilowatt hour for plants with an output of 100 kilowatts or more.

    In the press release, CKW also advises operators of photovoltaic systems to optimise their own consumption. This is particularly worthwhile in phases with low reimbursements. In addition to its own energy management solutions and battery storage systems, CKW also recommends joining forces with neighbours to optimise self-consumption. The new Electricity Act, which was approved by voters on 9 July, also opens up further options such as the formation of local electricity communities or virtual associations for self-consumption.

  • Flattening of construction price inflation continues

    Flattening of construction price inflation continues

    In 2022, construction prices in building construction experienced a sharp increase of over 8 per cent. In contrast, the construction price index for April 2024 shows a moderate increase of 0.8 per cent compared to the previous year. Since the last publication in December 2023, prices in building construction have risen by 0.4 per cent. Despite this slowdown, construction prices remain stable at a high level. Compared to three years ago, building construction prices increased by 13 per cent in April 2024.

    Material prices as the driving force
    A key factor in the levelling off of construction prices is the development of material costs. The KBOB material price index for building construction shows that material prices fell by 2.2 per cent between May 2023 and May 2024. Most of this decline took place between May and October 2023. Since November 2023, the material price index has stabilised and fell only slightly by 0.4 percent. Prices fell particularly sharply for reinforcing steel, which was over 10 per cent cheaper in May 2024 than in the previous year.

    Energy and fuel prices as a counterbalance
    While falling material prices are contributing to a slowdown in the development of construction prices, rising energy and fuel prices are counteracting this trend. According to the national consumer price index, energy and fuel prices in May 2024 were 6.6 per cent higher than in the previous year, which is putting upward pressure on construction prices.

    Outlook for future developments
    Despite the current stabilisation, there are factors that point to a possible renewed increase in construction prices. Wage trends and the continued rise in energy costs could lead to an increase in construction prices of around 1 per cent in 2024. It remains to be seen how these factors will affect the construction price index in the long term.

    Conclusion: diverse influences on construction prices
    The current development of construction prices is influenced by various factors. While falling material prices suggest a stagnating or declining trend, higher energy and fuel prices as well as wage trends are putting upward pressure. Construction prices are currently stabilising at a high level and a moderate increase is expected for 2024.

  • BKW acquires majority stake in HelveticWind

    BKW acquires majority stake in HelveticWind

    BKW has increased its stake in the HelveticWind cooperation to 60 per cent. The remaining 40 per cent will remain with Elektrizitätswerke des Kantons Zürich (EKZ). This strategic decision, which was signed on 5 July 2024, marks a significant realignment of the cooperation between the energy supply companies. Previously, BKW held 29 per cent and EKZ 20.2 per cent of the shares in HelveticWind.

    Successful cooperation in Germany and Italy
    HelveticWind operates a total of six wind farms, four of them in Germany with an installed capacity of 67 megawatts (MW) and two in Italy with 52 MW. BKW, which is already active as a service provider for the plants, has extensive expertise in the maintenance and optimisation of these wind farms. With the acquisition of the majority stake, BKW can further expand its existing portfolio of renewable energy generation plants.

    Future-oriented planning and CO2 neutrality by 2040
    Margarita Aleksieva, Head of Wind & Solar at BKW, is enthusiastic about the majority acquisition: “We want to help shape the energy transition in the coming decades and be CO2-neutral in the energy business by 2040. In this context, we are also examining the repowering potential of the six wind farms. Our aim is to optimise the existing sites in the future and increase our energy yield thanks to the latest technology.”

    Thanks to long-standing partners and outlook
    BKW would like to thank its departing partners Energie Wasser Bern, Genossenschaft Elektra Baselland and SN Erneuerbare Energie for their many years of collaboration. The reorganisation of the cooperation will enable BKW and EKZ to continue their partnership successfully and drive the energy transition forward together.

    History and objectives of the HelveticWind cooperation
    The HelveticWind cooperation was founded in March 2010 by Energie Wasser Bern and BKW. The original aim was to realise a wind power portfolio with an installed capacity of over 100 MW, which has since been exceeded. The German wind farms include Gross Welle, Lüdersdorf-Parstein, Sendenhorst and Wulkow, while the Ventisei and Eolo wind farms in Italy are part of the portfolio.

    With its majority stake in HelveticWind, BKW is strengthening its position in the field of renewable energies and taking an important step towards a sustainable energy future.

  • Raiffeisen sees weaker price momentum for property

    Raiffeisen sees weaker price momentum for property

    Raiffeisen recorded a slowdown in price momentum in the second quarter of 2024. Compared to the first quarter, prices for single-family homes rose by 1.3 per cent and those for condominiums by 0.5 per cent. According to a press release, “price momentum is not expected to pick up again any time soon” due to the persistently high interest rates compared to the low-interest phase, says Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland.

    The financial experts are currently observing the strongest price increases for single-family homes in city centres or tourist regions. “The price trend on the owner-occupied property market is weakening further with the descent from the interest rate peak,” says Hasenmaile.

    Compared to the previous year, prices for single-family homes in southern Switzerland (+11 per cent) and eastern Switzerland (+9.9 per cent) recorded the highest increases. Prices for houses fell slightly in western Switzerland (-1.8 per cent) and Zurich (-1.5 per cent). In contrast, Zurich (+6.3 per cent) and Northwestern Switzerland (+2 per cent) recorded the strongest increases for condominiums. According to the Raiffeisen Transaction Price Index, prices for owner-occupied flats have generally risen slightly in urban municipalities, but are weakening in the centres.

    The index is compiled quarterly and is published at the beginning of each quarter. It is based on real estate transaction data from Raiffeisen and the Swiss Real Estate Datapool(SRED).

  • Housing is becoming more expensive

    Housing is becoming more expensive

    People interested in buying their own home had to dig deeper into their pockets in June than in May. Prices for single-family homes rose by 1.2 per cent last month, explains the SMG Swiss Marketplace Group(SMG) in a press release on the current Swiss Real Estate Offer Index. At the same time, SMG’s experts observed a price increase of 1.0 per cent for condominiums. The SMG Swiss Marketplace Group combines the digital marketplaces of TX Group, Ringier and Mobiliar.

    “The Swiss National Bank’s further reduction in key interest rates on 20 June and the prospect of a further reduction in September will result in lower financing costs for mortgages”, comments Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, in the press release. “This increases both the attractiveness of owning your own four walls and their affordability.”

    SMG’s property experts recorded a month-on-month increase of 0.4 per cent in asking rents across Switzerland. At 3.3 per cent, rents rose the most in Ticino. This was followed by Central Switzerland with 1.8 per cent and Eastern Switzerland with 1.2 per cent. In the major regions of Zurich and Northwestern Switzerland, however, rents were 0.6 and 0.2 per cent lower than in May.

  • Government council doubles housing subsidies

    Government council doubles housing subsidies

    The Government Council of the Canton of Zurich rejects the popular initiative “More affordable housing in the Canton of Zurich”, which provides for a right of first refusal for municipalities to promote non-profit housing construction. Instead, the cantonal government relies on proven structures and instruments for the rapid and effective promotion of affordable housing.

    The counter-proposal provides for a doubling of the framework credit for cantonal housing promotion loans from the current CHF 180 million to CHF 360 million. This enables co-financing at communal level and thus creates a potential of CHF 720 million. This means that more flats can be subsidised and higher loan amounts can be granted per property. The Housing Promotion Ordinance is to be amended accordingly to increase the upper limit for loans from 20 to 25 per cent of the total investment costs.

    Criticism of the right of first refusal – encroachment on the guarantee of ownership
    The Government Council criticises the proposed right of first refusal in the popular initiative as an encroachment on the guarantee of ownership and freedom of contract. Private companies, including institutional investors such as pension funds, would be at a disadvantage, which could lead to legal uncertainty and deter private investment. This could inhibit residential construction activities and exacerbate the existing housing shortage.

    The right of first refusal also harbours the risk of lengthy appeal proceedings and could place a burden on municipalities and their taxpayers. The cantonal government sees the counter-proposal as a more efficient solution for creating affordable housing quickly.

    Housing shortage in the canton of Zurich
    Demand for housing in the canton of Zurich has exceeded supply for years. Construction activity is below average, which is leading to an increasing housing shortage. Although a large proportion of Zurich’s population lives in long-term tenancies and is therefore less affected by rising rental costs, the need for action remains great.

    The Government Council emphasises the need to stimulate construction activity in order to increase the overall supply of housing and curb rental and purchase prices. The counter-proposal aims to provide targeted housing for financially disadvantaged sections of the population.

    Effective promotion instead of right of first refusal
    The government council’s counter-proposal promises rapid and effective promotion of non-profit housing construction by doubling the framework credit and amending the Housing Promotion Ordinance. This will create a solid basis for combating the housing shortage in the canton of Zurich and providing more affordable housing for all sections of the population.