immo!nvest – Die Plattform für Standorte und Immobilien

Category: Business

  • New Lucerne Theatre: Forward-looking operating concept confirmed

    New Lucerne Theatre: Forward-looking operating concept confirmed

    The evaluation of the operating concept for the new Lucerne theatre, which was drawn up in 2020 and later adapted to the winning project “überall” by Zurich architects Ilg Santer, was led by the renowned management consultancy METRUM. This review included discussions with experts and a review of documents and studies on various operational aspects such as personnel, space costs and catering.

    Confirmation and strategic direction
    The evaluation was divided into the areas of “cultural policy issues”, “output issues” such as visitor numbers and performance figures and “input issues”, which include personnel planning and building maintenance. The results confirmed the operating concept and emphasised the need for detailed planning for the future. Cultural Director Dr Armin Hartmann and Lucerne City President Beat Züsli presented the encouraging results, which confirm the theatre as a multi-genre theatre with its own ensemble and emphasise its importance for cultural provision and economic value creation.

    Confidence-building and political acceptance
    The pre-evaluation serves as an important confidence-building measure for the project, which is facing political and financial challenges. The results provide a solid basis for the upcoming decisions and further project development, including a possible referendum in winter 2025. This step is crucial to convince the city council of the necessity and feasibility of the project.

    With the upcoming media conference and the detailed presentation of the “everywhere” project, the City of Lucerne will present a comprehensive report and proposal that sets out the financial and operational framework for the new theatre. This progress promises to have a lasting impact on Lucerne’s cultural landscape and further strengthen the city as a cultural hub in Switzerland.

  • New investor for sustainable construction start-ups

    New investor for sustainable construction start-ups

    Buildify.earth was founded with the vision of supporting sustainable innovation in the construction industry. The investment company is particularly involved in the early development phases of start-ups and offers not only capital but also access to an extensive network. This network has been established over the years as part of the development of Switzerland Innovation Park Central, NEST and other organisations and is a valuable asset for the supported companies.

    Strategic partnerships and long-term goals
    Eight years ago, planning began for the location of the Innovation Park in Central Switzerland, which opened its doors in Rotkreuz in 2019 and has officially been part of Switzerland Innovation since 2021. The park now has over 100 members, including well-known players in the Swiss construction industry and research institutions. This network provides direct access to decision-makers and a platform for start-ups to forge important collaborations in a traditionally risk-averse industry.

    Provision of funding and resources
    The funds provided by private investors, the Zuger Kantonalbank and the park itself, which amount to a single-digit million sum, will enable buildify.earth to make significant initial investments, which are to be announced soon. The investment pipeline is richly filled, including 40 startups that are already members of the park. Buildify.earth AG takes a flexible role as a co-investor that can act quickly and act as a catalyst for further investments.

    Long-term planning and open doors for further investors
    Reto Largo and Sem Mattli, the heads of buildify.earth, are not only looking for promising start-ups, but also for further investors to strengthen the capital of the company’s evergreen structure. This structure fits well with the long innovation cycles in the construction sector and allows a portion of the proceeds to be reinvested while seeking attractive returns for investors. This is just the beginning of a long-term strategy aimed at making substantial investments in promising start-ups and actively shaping the future of the sustainable construction industry.

  • Continuation of the Basel region’s energy package planned until 2025

    Continuation of the Basel region’s energy package planned until 2025

    In order to ensure the continuity of the Basel-Landschaft energy package, the cantonal government has proposed an increase in the expenditure authorisation and a supplementary credit for 2024 to the cantonal parliament. This procedure is intended to ensure that the programme to promote energy-efficient building renovations and the use of renewable energies in the building sector can continue seamlessly. A supplementary credit of CHF 2.28 million has been requested for 2024, and the total expenditure authorisation until the end of 2025 is to be increased to CHF 42.16 million.

    The energy package has proven to be particularly effective thanks to the high willingness of building owners to invest. Despite demand stabilising at a high level after a record year in 2022, the subsidy programme remains very effective in an intercantonal comparison. These results were presented in detail in the latest interim report from the cantonal government to the cantonal council.

    Due to the current financial bottlenecks, the cantonal government is planning a moderate reduction in contribution rates from 1 January 2025. This adjustment reflects the above-average rates compared to other Swiss cantons and will be cushioned by the recently introduced energy premium, which offers income- and asset-based support. At the same time, the new national impulse programme, which will be launched at the beginning of 2025, will offer further financial support for the conversion of heating systems and comprehensive renovation of building envelopes.

    For the next planning periods from 2026 to 2030, the Government Council is preparing a separate bill based on the findings of the 2022 energy planning report and other parliamentary mandates. This initiative is intended to further strengthen the focus and effectiveness of the funding programme and adapt it to the dynamic needs of the energy market.

    Finally, based on the Cantonal Energy Act, the interim report emphasises the importance of regularly reviewing and adapting the support measures in order to effectively support CO2 reduction and meet legislative requirements. The cantonal government remains committed to a sustainable and energy-efficient future for Basel-Landschaft.

  • Helvetica strengthens management team to realise strategic goals

    Helvetica strengthens management team to realise strategic goals

    As part of its long-term corporate strategy, important personnel decisions have been made to strengthen its management team and optimise the company’s competitive position. The latest additions to the team include Dirk Adriaenssen as Head of Asset Management, Mauro Golinelli as Investor Relations Specialist and Ruedi Voegeli, who takes over the Finance, Controlling and Accounting department.

    Dirk Adriaenssen has more than 25 years of industry experience in the retail, office and residential property sectors. He has been active in various European markets, including ten years in Switzerland. Most recently, he supported the integration of Credit Suisse’s property portfolios into the UBS portfolio and previously led the management of commercial property portfolios in Switzerland and Central Europe as Country Managing Director at Redevco. Adriaenssen, who holds a Master’s degree in law from the University of Brussels and is MRICS certified, will be responsible for asset management and strategic property management at Helvetica.

    Mauro Golinelli, who will start on 1 June 2024, will act as Client Relationship Manager, fostering relationships with investors and strengthening the company’s presence in French-speaking Switzerland in particular. With over ten years of experience at the Swiss Finance & Property Group, he has in-depth knowledge of property investment sales and is a federally certified finance and investment expert.

    Ruedi Voegeli, who has been part of the team since January 2024, will take over as Head of the Finance, Controlling and Accounting departments. Voegeli was CFO of PFS Pension Fund Services and previously worked at Edelweiss Air. He has extensive experience in financial management and is a business economist FH as well as a federally certified expert in accounting and controlling.

    These strategic appointments are part of the endeavour to manage its funds effectively and offer innovative solutions that meet changing market conditions. The expansion of the team should contribute to the efficient implementation of the funds’ objectives and consolidate the company’s position as a leader in the property investment sector.

  • Sustainable properties are fit for the future

    Sustainable properties are fit for the future

    Residential and commercial properties need energy – and a lot of it. The Swiss building stock is responsible for 40 per cent of Switzerland’s final energy requirements and a third of domesticCO2 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 its corporate customers a free analysis to identify the optimisation potential in their property portfolio. Bernd Geisenberger, member of the Executive Board and Head of Corporate Clients, explains in an interview what opportunities sustainable real estate offers and how customers with a real estate portfolio can benefit from Migros Bank’s expertise.

    What is a sustainable property?
    Basically, a sustainable property is one that provides ecological, social and economic benefits in the long term. What this actually means for an individual building must be assessed on a case-by-case basis and cannot be generalised. The social and economic benefits in particular depend on the intended use of the building. This means that there can be major differences from case to case. In terms of environmental sustainability, the aim is to increase the building’s energy efficiency and reduce emissions, among other things.

    Migros Bank offers a free analysis of property portfolios. What is analysed?
    Together with customers, we examine residential or commercial properties for sustainability, yield, potential and marketability. Together with property experts, we have developed a tool for this purpose. This tool shows which investments have an impact on theCO2 emissions of the property portfolio, as well as the income and costs resulting from these investments. It often turns out that an energy-efficient refurbishment or an early replacement of the heating system, i.e. switching from fossil fuels to renewable energies, has a positive impact on profitability.

    What follows the analysis?
    A consultation in which we show our clients the opportunities and risks of their property. We also discuss possible strategic positioning of their portfolio on the market.

    You talk about opportunities. What exactly do these look like for sustainable buildings?
    If the energy efficiency of buildings increases, energy costs fall. This is directly noticeable. Of course, the investments – for example in the refurbishment of the building – have to be amortised. However, expensive energy costs mean that the amortisation period is short in many cases. Increased energy efficiency also increases the market value of the property. However, the increase in attractiveness is not only noticeable in the event of a sale, but also for rental properties. The demand for sustainable buildings with low ancillary costs is high. Tenants are prepared to pay more for sustainable living space. In addition to these measurable benefits, sustainable buildings also offer opportunities that cannot be directly quantified, such as improved reputation. By investing in sustainable property, a company can position itself as a responsible player. This often has the effect of strengthening relationships with customers, investors and partners.

    The trend towards greater sustainability in the property sector is picking up speed. Will the wind change again?
    Sustainability is not a passing fad, but essential in the long term. Addressing the issue at an early stage makes it easier to plan investments and thus increases the ability to act. Those who invest in sustainable property today are therefore better prepared for the challenges of the future.

  • Changes in the Swiss mortgage market after key interest rate cut

    Changes in the Swiss mortgage market after key interest rate cut

    Following the surprising reduction in the key interest rate by the Swiss National Bank(SNB), mortgages based on the Swiss Average Rate Overnight (SARON) reference interest rate have become more favourable, while interest rates for fixed-rate mortgages have remained virtually unchanged. However, demand for SARON mortgages fell drastically year-on-year in the first quarter of 2024, Comparis reports in a press release on the comparison portal’s latest mortgage barometer. At Comparis mortgage partner HypoPlus, the share of SARON mortgages fell from around 25 per cent to around 3 per cent.

    At the same time, the share of fixed-rate mortgages with a medium term increased from around 20 per cent to around 33 per cent. At just under 50 per cent, the share of fixed-rate mortgages with a term of ten to 15 years was roughly the same as in the same quarter of the previous year. “In an environment of great uncertainty, fixed-rate mortgages with the longest possible term offer a high degree of planning security,” explains Comparis financial expert Dirk Renkert in the press release.

    According to Renkert, fixed-rate mortgages had already become more favourable by the end of 2023, as the market had assumed that key interest rates would be cut in 2024. With market interest rates of 1.7 to 1.8 per cent for ten-year fixed-rate mortgages, these continue to be more favourable than SARON mortgages. In order for SARON mortgages, which currently have interest rates of 2.1 to 2.3 per cent, to catch up with fixed-rate mortgages, “at least one, if not two, interest rate cuts” by the SNB will be necessary, says Renkert.

  • CHF 2 million for the development of energy-saving lighting

    CHF 2 million for the development of energy-saving lighting

    LEDCity, a Zurich-based start-up in the cleantech sector, has secured 2 million Swiss francs as part of a further financing round. According to a press release, the company was able to secure a total of 5 million Swiss francs in funding within a period of twelve months. The secured Series A financing will enable LEDCity to further consolidate its role as a leading innovator in the cleantech sector, according to the press release. “With the new funding from our investors, we are well positioned to respond to growing demand and advance our mission to reduce dependence on fossil fuels by redefining lighting,” said Patrik Deuss, CEO and founder of LEDCity, in the press release.

    LEDCity has developed a lighting solution that aims to reduce electricity consumption by up to 80 per cent. The company wants to use it to replace traditional motion detectors in commercial buildings. The innovative system controls the lighting on site using sensors and algorithms directly in the light source. This means that each area of a building can be illuminated exactly as required. With the additional funding, the company aims to meet the demand for these intelligent and energy-efficient systems on the national and international market, according to the press release.

  • Value-added tax in the canton of Zurich – skilful solutions required

    Value-added tax in the canton of Zurich – skilful solutions required

    Pressure from the federal government
    The federal parliament has set the course with the revision of the Federal Spatial Planning Act (SPA) and the electorate has approved this amendment. Since 1 May 2014, the new Art. 5 para. 1bis to para. 1sexies RPG regulate the minimum requirements for the levy on added value.

    The amount of the added value levy in the canton of Zurich
    The canton of Zurich has fulfilled its obligation with the entry into force of the legislation on added value. A distinction is made between zoning and upzoning/rezoning. For single-zone developments, the canton charges 20% of the added value. The municipalities can stipulate a maximum levy of 40% for upzoning or rezoning. The estimated levy rates vary between 20% and 40%.

    When calculating the value-added levy, the municipalities can exercise a certain degree of discretion and allow certain deductions: Firstly, value-added levies of less than CHF 30,000 are not charged. In addition, the legislation provides for a flat-rate deduction of CHF 100,000. Furthermore, the municipalities determine an open area of between 1,200 m2 and 2,000 m2. Planning expenses can also be deducted from the added value.

    Assessment and legal protection
    In individual cases, the municipalities consult valuation companies to calculate the added value. In practice, it has been shown that these companies use their own databases, the data basis of which is hardly comprehensible for those affected. Nevertheless, certain corrections can sometimes be made at this stage. It is therefore worth examining such calculations in depth and analysing them.
    After granting the right to be heard, the authority determines the added value by means of a ruling. This can be appealed to the Building Appeal Court of the Canton of Zurich.

    Urban development contract – a useful instrument
    An alternative is the urban development contract (Section 21 MAG). In such a contract, the parties are free to agree on benefits in kind from the landowner instead of a payment. In this case, the added value and value of the services do not necessarily have to be estimated. In many cases, this gives the parties economic and spatial room for manoeuvre. Possible agreements could relate to the upgrading of publicly accessible areas, the promotion of public transport, participation in public facilities (e.g. crèche) or the creation of affordable housing. The landowner receives a means of upgrading their own development or its surroundings by offsetting the value-added tax to be paid; often a win-win situation.

    Solutions allow a lot of money to be used for your own development that would otherwise disappear into a state pot. It is advisable to consult a specialised law firm for the possibilities.

  • Price increases and regional declines in the 1st quarter of 2024

    Price increases and regional declines in the 1st quarter of 2024

    The latest analysis by Fahrländer Partner Raumentwicklung (FPRE) shows that prices for owner-occupied flats in Switzerland have risen by 0.8 per cent compared to the previous quarter, with the strongest growth in the lower segment at 1.9 per cent. There was also an increase in single-family homes, which was particularly pronounced at 1.8 per cent compared to the previous quarter and 5.5 per cent compared to the same quarter of the previous year. The upmarket single-family home segment in particular saw the strongest increase at 3.0 per cent.

    Despite these nationwide increases, there are regional differences: In the Basel, Jura and Lake Geneva regions, prices for mid-range condominiums fell, while prices rose in southern Switzerland, the Alpine region, the Central Plateau and eastern Switzerland.

    This price dynamic is also reflected in the reaction of households to the latest interest rate cut by the Swiss National Bank (SNB). The reduction of the key interest rate in March 2024 from 1.75 to 1.5 per cent, which took place before the interest rate decisions of the US and European central banks, was aimed at taking into account the reduced inflationary pressure in Switzerland and stabilising the Swiss franc.

    Stefan Fahrländer from FPRE comments that despite ongoing global uncertainties, the interest rate cut could potentially provide positive impetus for demand in the affected regions. In the long term, FPRE sees continued high demand coupled with low construction activity as a driver for further increases in residential property prices.

  • St.Jakob-Park stadium co-operative takes stock of its finances

    St.Jakob-Park stadium co-operative takes stock of its finances

    The St. Jakob Stadium Cooperative(GSS) has provided information on its financial situation at a general meeting. According to a press release, CHF 3 million must be raised annually for maintenance and urgent renovation costs. The current infrastructure of the stadium, which has been in operation since 2001 and is the headquarters of FC Basel, is no longer up to date. A necessary renovation should therefore reduce costs in the long term and contribute to the economical and sustainable operation of the stadium for the benefit of FC Basel, according to the press release. In order to acquire the necessary capital, equity and borrowed funds are to be raised. The GSS is currently examining how external funds can be raised through sponsorship, donations, crowdfunding and marketing the name. It is also appealing for support from the relevant cantonal authorities.

    “The Joggeli is a landmark of the region. It is an institution of public interest that needs to be maintained and cared for,” Mathieu Jaus, Managing Director of GSS, is quoted as saying in the press release. “A modern infrastructure is an important piece of the puzzle for sporting success, the enjoyment of the fans, but also for the appeal of the stadium. We believe in this and want to ensure this together with all our partners and the region.”

  • UBS does not expect a seller’s market for property

    UBS does not expect a seller’s market for property

    The proportion of the population that can afford a mid-range home has fallen from around 60 per cent to around 15 per cent over the past 20 years, explains UBS in a press release on its Real Estate Focus 2024. Price increases for condominiums and single-family homes are therefore currently being driven mainly by the influx of affluent people from abroad and strong growth in upper incomes. For the current year, the real estate experts at the big bank expect prices for condominiums to rise by 1.5 per cent and for single-family homes by 1.0 per cent. However, UBS estimates that prices should pick up again from 2025 due to lower financing costs, housing shortages and an improved economy.

    Prices on the market for office space are expected to stabilise at a low level. According to the press release, prices in prime locations fell by 10 to 15 per cent last year. According to the property experts at UBS, the high interest rates are the reason why the price correction has already been completed.

    In the market for multi-family homes, sharp increases in asking rents have so far been able to compensate for the equally increased borrowing costs and the reduced attractiveness of achievable yields. “Accordingly, the purchase prices of apartment buildings have stabilised,” write the UBS experts. They assume that purchase prices will rise again from next year at the latest.

  • UBS and Wincasa launch new property advisory service

    UBS and Wincasa launch new property advisory service

    UBS and property service provider Wincasa are offering owners of investment properties a new advisory solution. According to a press release, both companies want to use this offer to support owners in the renovation and energy-efficient refurbishment of their properties. The expertise of the Zurich-based financial institution UBS and the real estate company belonging to the Implenia Group will make the renovation of investment properties easier and more seamless, according to the press release. In particular, the focus is on greenhouse gas emissions. The real estate sector is the second-largest emitter in Switzerland with around 25 per cent.

    In a consultation with UBS and Wincasa, the needs of owners of investment properties are discussed and a modular offer is drawn up. UBS experts determine the financial feasibility of planned projects.

    “We are delighted to be launching this comprehensive advisory solution for the energy-efficient refurbishment of investment properties in the Swiss market together with Wincasa,” said Alain Conte, Head of Corporate & Real Estate Banking Switzerland at UBS, in the press release. “With this new offering, we want to give an additional boost to sustainable thinking in the property sector.” “Wincasa and Implenia have extensive expertise and experience in advising, planning and implementing renovation projects, particularly in the energy-efficient refurbishment of older existing properties. We will bring this expertise to the new offering and thus create added value for UBS customers,” adds Jens Vollmar, Chairman of the Board of Directors of Wincasa and Head Division Buildings at Implenia.

  • Axept and PropBase join forces for property

    Axept and PropBase join forces for property

    The software companies PropBase from Neuhausen am Rheinfall and Axept from St.Gallen have agreed to work together in the property sector. According to a press release, the collaboration will focus in particular on processing large volumes of data in the areas of property ownership, asset management, construction companies, property management, property management and accounting. Both companies want to digitalise this complex data processing to a large extent and thus make the market more transparent and easily accessible for customers. PropBase provides web-based, constantly updated software that offers an overview of properties throughout Switzerland. Axept integrates seamless commercial management with its Abacus-based software. The programme package is specially designed for the Swiss market and complies with all legal requirements.

    According to the press release, the partnership in the software sector is intended to significantly advance the digitalisation of the real estate industry. Axept will also take over the implementation, support and training for PropBase programmes.

  • Prices for residential property rise by over 3 per cent

    Prices for residential property rise by over 3 per cent

    The market for owner-occupied residential property remains robust in the first quarter of 2024, according to Raiffeisen in its media release on the Q1 transaction price index. According to the report, prices for single-family homes rose by 1.4 per cent in the first quarter of 2024. This means they have become 3.9 per cent more expensive compared to the same quarter of the previous year.

    Single-family homes around Lake Geneva (+7 per cent) and in western Switzerland (+5.9 per cent) recorded the strongest year-on-year increases. In contrast, prices in Eastern Switzerland stagnated (+0.0 per cent).

    By contrast, prices for condominiums have risen the most in Northwestern Switzerland (+7.2 per cent) and Central Switzerland (+4.9 per cent) over the past four quarters. Prices rose only slightly in eastern Switzerland (+0.7 per cent) and on Lake Geneva (+0.9 per cent). Compared to the previous quarter, prices for owner-occupied condominiums fell by an average of 0.3 per cent.

    “Now that the SNB has heralded a downward turn in interest rates due to surprisingly low inflation figures, buying is once again somewhat more attractive than renting a comparable flat,” says Raiffeisen chief economist Fredy Hasenmaile. “This will increase the recently declining demand for residential property again and thus support price momentum.”

    Within the space of a year, prices for home ownership rose by 7.1 per cent, the most in central municipalities. In the condominium segment, urban municipalities recorded the strongest price increases (+4.4 per cent).

  • Eigenheimpreise bleiben stabil

    Eigenheimpreise bleiben stabil

    Die Preise für Einfamilienhäuser sind im März nur um 0,3 Prozent höher als im Vormonat ausgefallen, informiert SMG Swiss Marketplace Group (SMG) in einer Mitteilung zum aktuellen Swiss Real Estate Offer Index. Die Preise für Eigentumswohnungen legten gleichzeitig um 0,4 Prozent zu. Damit haben sich die Preise für Eigenheime im März nur unwesentlich verändert, schreiben die Fachleute von SMG. In der SMG Swiss Marketplace Group sind die digitalen Marktplätze von TX Group, Ringier und Mobiliar vereint.

    Im Jahresvergleich sind die Preise für Einfamilienhäuser nahezu konstant geblieben. Dies zeige, dass hier derzeit keine weiteren Preiserhöhungen durchzusetzen seien, so die Immobilienfachleute. Trotz eines Preisanstiegs von 2,3 Prozent im Jahresvergleich fallen die Preise für Eigentumswohnungen weiterhin geringer als die von Einfamilienhäusern aus. Zudem werden mehr Eigentumswohnungen als Einfamilienhäuser am Markt angeboten.

    Bei den Angebotsmieten haben die Fachleute von SMG innerhalb der Kantone unterschiedliche Entwicklungen beobachtet. So fielen die Mieten in den Grossregionen Zürich und Zentralschweiz im März höher als im Februar aus. In den Regionen Genfersee, Tessin, Nordwestschweiz und Mittelland wurde hingegen ein Rückgang beobachtet. Im schweizweiten Durchschnitt zogen die Mieten im Monatsvergleich um 0,2 Prozent an.

    „Die überraschende Leitzinssenkung der Schweizerischen Nationalbank Ende März auf 1,5 Prozent ist eine gute Nachricht für Mieter:innen, die keine Umzugspläne hegen“, wird Martin Waeber, Managing Director Real Estate der SMG Swiss Marketplace Group, in der Mitteilung zitiert. „Denn dies dürfte die Festsetzung des Mietzinsreferenzsatzes auf dem derzeitigen Niveau begünstigen.“

  • Prices for luxury properties reach their zenith

    Prices for luxury properties reach their zenith

    Luxury properties in Switzerland were on average 2 per cent more expensive in 2023 than in the previous year. This means that the rapid rise in prices in the luxury segment is coming to an end after peaking at 10 per cent in 2022, writes UBS in a press release. The experts at the major bank attribute the slowdown in the market to the weak economy and the strong Swiss franc.

    “Advertised properties are attracting fewer potential buyers, who are increasingly questioning the price,” UBS property economist Katharina Hofer is quoted as saying in the press release. “If sellers are under time pressure, they may have to accept discounts.” For the current year, Hofer expects prices for luxury properties to fall by a low single-digit percentage year-on-year.

    In terms of location, St. Moritz GR leads the rankings with prices per square metre of over CHF 42,000. In municipalities with a high proportion of luxury properties in Geneva or on Lake Zurich, prices per square metre start at CHF 25,000. Established luxury locations such as St. Moritz, Gstaad BE and Verbier VS have formed the top group of the most expensive Swiss municipalities for a good ten years.

    In the canton of Zug, on the other hand, UBS experts have identified a remarkable increase in prices in the municipalities analysed over the past ten years. According to UBS, this shows “how attractive the low-tax strategy has made the location for some time now, particularly for people with high incomes and assets”. In Andermatt, the availability of numerous high-priced properties has led to the municipality in Uri being increasingly perceived as a luxury destination.

  • Disused smartphones to control buildings

    Disused smartphones to control buildings

    The automation of building systems can significantly reduce the energy requirements of buildings. However, computer chips are required to control them, the production of which is associated with CO2 emissions. Hanmin Cai, a researcher in the field of urban energy systems at the Swiss Federal Laboratories for Materials Science and Technology(Empa), wants to remedy this situation. Instead of new hardware, the Empa researcher wants to use disused smartphones.

    “These systems are designed to reduce energy consumption and CO2 emissions,” Cai is quoted as saying in a corresponding Empa press release. “But if we have to manufacture new hardware for this purpose, the production and transport of which require valuable resources and cause large amounts of CO2, then we are simply shifting some of the emissions to other sectors.” Smartphones that are taken out of service due to a damaged screen or weak batteries usually still have perfectly functioning memory and processors. Cai has investigated the extent to which these are suitable for controlling control and communication tasks in building systems.

    Initial tests have shown that the smartphone controllers provide sufficient accuracy and communication speed for building control. However, according to the information provided, there is still a long way to go before the approach is ready for the market. Issues such as security and the service life of the memory and processors used still need to be clarified.

  • Services burden BKW’s result

    Services burden BKW’s result

    According to a press release, BKW achieved the second-best financial year in its history in 2023. With revenue of CHF 4,598 million, the Bern-based energy supplier achieved earnings before interest and taxes of CHF 620 million and a net profit of CHF 488 million. Sales are thus 12 per cent below the record year 2022, but 29 per cent above 2021. The result and profit were similar: net profit in 2023 was 40 per cent below that of 2022 and 76 per cent above that of 2021.

    The result is primarily driven by the Energy business division. According to the annual report, this contributed a total of CHF 535 million to the result with a total operating performance of CHF 2,953 million, a decrease of 24 per cent in output and 40 per cent in profit. Investments in the Energy business division rose from CHF 147 million to CHF 276 million.

    With a total output of CHF 540 million, the grids delivered a result of CHF 147 million, an increase of 5 per cent in output and 0.6 per cent in the result. Investments rose from CHF 113 million in 2022 to CHF 136 million in 2023.

    Sales of services rose by 4 per cent to CHF 1,838 million in 2023. The business division reported a loss of 40 million francs. In the previous year, it had still posted a plus of 53 million francs. The result was burdened by depreciation and impairments totalling 132 million francs. Investments fell from CHF 333 million to CHF 75 million. BKW aims to sustainably increase the profitability of the business area by the end of 2024. It is also examining sales and acquisitions.

  • Zurich buys site for urban housing estate in Witikon

    Zurich buys site for urban housing estate in Witikon

    The city of Zurich has acquired a site for social housing in the Witikon neighbourhood. According to a press release, the city purchased the Harsplen site from the Swisscanto Investment Foundation for a sum of CHF 210 million. With the 30,300 square metre plot of land, Zurich acquired development plans for a residential area with 370 units. The costs totalled 211.28 million Swiss francs.

    The acquisition will be the first urban development on the eastern edge of Witikon. The housing development is in line with the goal of increasing the proportion of non-profit rental housing to one third by 2050. The construction project fulfils the requirements for urban housing construction and the corresponding sustainability requirements. According to the development plans for municipal housing construction, living space for around 700 people can be created here. The city council is regulating the associated building and zoning regulations in order to ensure optimal transport links to the site.

  • No easy task: marketing Swiss luxury properties

    No easy task: marketing Swiss luxury properties

    The price increase in the luxury segment in Switzerland, which reached almost 10 per cent in 2022, is coming to an end. Last year, prices for luxury homes rose by an average of around 2 per cent. Single-family homes in particular slowed down, with an increase of just over 1 per cent in 2023 compared to 8 per cent in the previous year. Growth in condominiums fell from 9 to 3 per cent. Overall, the luxury property market performed slightly weaker than the market as a whole, with prices currently 25 per cent higher than pre-coronavirus levels.

    Little support
    In the current geopolitical situation, Switzerland is considered a safe haven due to its stable institutions and high standard of living, which is a strong attraction. However, luxury property has become more expensive due to the strong franc and price trends, which has dampened international demand. The average wealth of Swiss households (excluding property) has remained unchanged in recent years. Economic growth is not particularly strong, which is affecting demand for high-priced property. According to UBS property economist Katharina Hofer, a slight decline in luxury property prices is expected for the current year.

    Three out of four of the most expensive locations are in the mountains. St. Moritz tops the list with prices per square metre of over CHF 42,000. Gstaad is close behind in the luxury segment (39,000 francs per square metre). Cologny on Lake Geneva records prices of over 35,000 francs per square metre, similar to Verbier. In other municipalities with a high proportion of luxury properties in the Geneva region and on Lake Zurich, luxury properties are priced from CHF 25,000 per square metre. For a property in good condition on 1,500 square metres of land, a purchase price of eight to ten million francs can be expected there. In Ticino, luxury prices start at just under 20,000 francs per square metre.

    Lower-cost locations are gaining ground
    A decade ago, the renowned luxury resorts of St. Moritz, Gstaad and Verbier already held their place at the top of the most expensive Swiss municipalities and were able to defend this position unchallenged. Katharina Hofer explains: “In general, luxury markets, especially traditional ones, show remarkable stability over a longer period of time. Short-term price corrections have been largely offset over the last decade.” In the Lake Zurich and Geneva regions, there have been few changes on average in the ranking of the 100 most expensive Swiss municipalities. The situation is quite different in Central Switzerland, where the municipalities analysed in the canton of Zug have moved up an average of more than 30 places within a decade. This illustrates how attractive the low-tax strategy has long made the location, particularly for people with high incomes and assets. However, the biggest winner of the last ten years is the up-and-coming municipality of Andermatt in the canton of Uri, which is increasingly being perceived as a luxury destination thanks to the construction of numerous high-priced properties. In Ticino, on the other hand, price levels have not been able to keep pace with the other municipalities due to an oversupply of luxury flats.

  • Limmatstadt AG prepares for the next stage

    Limmatstadt AG prepares for the next stage

    As announced, Balz Halter has resigned as Chairman of the Board of Directors of Limmatstadt AG. Erika Fries, Peter Rauch and Franziska Schopp also stepped down at the Annual General Meeting on 12 March at JED Schlieren. “We want to make room for new forces,” says Halter. The shareholders of the regional location promoter unanimously elected Lara Albanesi (Administrative Director of the Kurtheater Baden), the Mayor of Weiningen and Weytec co-owner Mario Okle and Jasmina Ritz to the Board of Directors. They will join Josef Bütler and Jörg Krummenacher, who are currently on the Board. Jasmina Ritz announced her resignation as Managing Director of Limmatstadt at the end of 2024.

    The new Board of Directors will primarily have to deal with financing. According to Balz Halter, expenditure amounts to around CHF 600,000, a third of which is for staff. The municipalities and the two cantons pay 200,000 francs, the economy 150,000 francs. Halter AG will pay the remainder, most recently CHF 250,000. His company will do this one last time in 2024, said the initiator of Limmatstadt AG.

    Both politicians and the business community are called upon to provide future funding. “We need regional location promotion,” said Urdorf mayor Sandra Rottensteiner. “We need to divide the funding so that we can maintain the structures of Limmatstadt AG.” Urdorf is prepared to double its contribution.

    The Limmat Valley SME and Trade Association, the Spreitenbach Industry, Services and Trade Association(IDH), the Schlieren Chamber of Commerce and the Dietikon Industry and Trade Association support the further development of the regional location promoter. A joint vision, a performance mandate and a financial commitment from the new organisation are needed, they write in a parallel statement. The organisation should operate economic and location promotion, network the region internally and represent it externally.

    Patrick Stäuble, IDH President and Managing Director of Shoppi Tivoli, emphasised the importance of a cross-cantonal offering. “We need an institution that looks beyond borders. Then the economy will be prepared to give money,” he said on the podium.

    The members of the Board of Directors are confident. “I don’t have a recipe yet, but I have confidence that things will continue,” said the newly elected Mario Okle. Josef Bütler, one of the two incumbents and former mayor of Spreitenbach: “I am convinced that we will still be around in 2025.”

  • BKW reports second-best result in company history

    BKW reports second-best result in company history

    BKW AG generated sales totalling almost CHF 4.60 billion in the 2023 financial year. Compared to “the extraordinary previous year with the fundamental upheavals on the energy markets”, revenue was 12 per cent lower, the Bern-based energy supplier reported in a press release. Compared to 2021, however, sales growth of 29 per cent was achieved.

    At CHF 620 million, the operating result at EBIT level was 40 per cent lower than in the previous year and 57 per cent higher than in 2021. Net operating profit amounted to CHF 432 million, which is 40 per cent less than in 2022 but 76 per cent more than in 2021. Overall, BKW thus achieved the second-best result in its history after the extraordinary previous year.

    The Energy business area in particular contributed to the positive developments. Here a contribution to EBIT of CHF 535 million was realised. At CHF 147 million, the Grids business division “once again made a solid contribution” to the result, according to the press release. The Group invests more than CHF 120 million annually in a secure and modern network infrastructure.

    In the services business, sales increased by 4 per cent year-on-year to CHF 1.84 billion. However, the contribution to the operating result remained “clearly below expectations” with a loss of CHF 40 million, writes BKW. This is due to one-off effects such as project value adjustments and impairments. For the current year, the Group anticipates an improved earnings situation in the services business.

  • Revaluations reduce Fundamenta Real Estate’s profits

    Revaluations reduce Fundamenta Real Estate’s profits

    Fundamenta Real Estate has maintained its net actual rental income for 2023 at the previous year’s level of CHF 41.0 million, the Zug-based real estate company announced in a press release. At the same time, the vacancy rate was reduced from 1.6 to 1.3 per cent. Revaluations in the property portfolio reduced net profit from 22.3 million francs in the previous year to 8.3 million francs in the reporting year.

    Excluding revaluations, however, net profit was 2.3 per cent higher than in 2022 at CHF 20.3 million. Fundamenta Real Estate attributes this primarily to a year-on-year reduction in administrative expenses of 20.6 per cent and lower income taxes. At CHF 10.0 million, impairments also accounted for only 0.8 per cent of the volume of the property portfolio. The portfolio was valued at CHF 1.20 billion at the end of 2023.

    “Despite a significantly changed market environment with significantly higher interest costs and ongoing developments in the portfolio, we have demonstrated our operational profitability and stability,” said Andreas Spahni, Chairman and Delegate of the Board of Directors of Fundamenta Real Estate, in the press release. “We also see opportunities to further expand our portfolio, which is already highly sustainable and value-preserving, in order to continuously improve our earnings structure.”

    The shareholders of the property company are to participate in the profits with a dividend of CHF 0.55 per share. The necessary distribution totalling CHF 16.5 million corresponds to 81.3 percent of net profit excluding revaluation.

  • Changing investment strategies due to rising interest rates

    Changing investment strategies due to rising interest rates

    Just as sailors avoid the Bermuda Triangle, investors must also consider the risks of their investments. The magic triangle of investment strategy – liquidity, profitability and security – is now being expanded to include ESG factors. This step is also supported by the “Lost in Transition” study by the Lucerne University of Applied Sciences and Arts. Institutional investors are placing greater emphasis on ensuring that their investments are sustainable in the long term, even if this leads to lower returns in the short term.

    A look at Swiss pension funds
    Swiss pension funds have diversified their investments, although the proportion of real estate varies from fund to fund. The analysis of the Swisscanto Pension Fund Study 2023 shows that real estate is gaining in importance compared to equities and bonds. This trend can also be observed among other institutional investors, whereby the real estate ratio in the portfolio should be between 10% and 25% in order to ensure optimal diversification.

    The impact of rising interest rates on the asset classes
    Rising interest rates have a negative impact on all three main asset classes – equities, bonds and real estate. For bonds, interest rate rises lead to price losses, while for equities they reduce their attractiveness. Real estate investments become more expensive, which leads to a decline in demand and thus to a fall in prices. Institutional investors are reacting to these developments by realigning their portfolios and reducing their real estate holdings in order to lower their leverage ratios.

    The difficult market environment and its impact on real estate investments
    Sentiment on the real estate market is subdued due to rising interest rates and uncertainty on the financial markets. This is reflected in the Swiss Real Estate Sentiment Index, which measures the expectations of market participants. Investments in real estate are becoming less attractive, but the current market environment also offers opportunities, especially for investors who are prepared to invest for the long term and weather the market fluctuations.

    Rising interest rates pose a challenge for institutional investors, especially those who have invested in real estate. A realignment of the investment strategy and prudent portfolio optimization are crucial to achieving long-term returns and minimizing risks.

  • Property market shows slight easing

    Property market shows slight easing

    Prices for single-family homes fell by 1.0 per cent in February compared to January, according to the SMG Swiss Marketplace Group(SMG) in a press release on the current Swiss Real Estate Offer Index. This means that the significant rise in prices at the beginning of the year has been reversed, write the SMG experts. The SMG Swiss Marketplace Group combines the digital marketplaces of TX Group, Ringier and Mobiliar.

    Over the last twelve months, prices for single-family homes have remained relatively stable with only a slight increase of 0.1 per cent. SMG’s experts have also registered a stabilisation in the market for condominiums. A zero round was observed here in February. Following significantly stronger increases in previous years, prices have risen by an average of just 2.9 per cent across Switzerland over the last twelve months.

    Asking rents for flats fell by an average of 0.6 per cent across Switzerland in February compared to January. Within the regions, asking rents were lower than in the previous month, particularly in Central Switzerland, the greater Zurich region, Ticino and Eastern Switzerland. In contrast, asking rents in the Central Plateau and the Lake Geneva region rose slightly.

    “After several months of increases, February brought a ray of hope for flat seekers”, Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, is quoted as saying in the press release. According to him, this is partly due to the planned maintenance of the reference interest rate under rental law at its current level.

  • Dormakaba increases profitability

    Dormakaba increases profitability

    Dormakaba generated global sales totalling 1.38 billion Swiss francs in the first half of the 2023/24 financial year, which ended on 31 December 2023. This corresponds to a year-on-year decline of 3.0 per cent, dormakaba announced in a press release. The Rümlang-based locking technology company attributes this to a “significant negative currency effect of 95.2 million Swiss francs”.

    Excluding this effect, organic sales growth amounted to 3.9 per cent, explains dormakaba. The adjusted operating result at EBITDA level increased by 8.7 per cent year-on-year to CHF 200.7 million. The corresponding margin improved by 1.6 percentage points to 14.6 per cent. At 48.5 million francs, however, Group profit in the half-year under review was 5.8 million francs lower than in the same period of the previous year.

    “Our results clearly show how everyone at dormakaba is contributing to the effective implementation of our transformation programme as planned,” said dormakaba CEO Till Reuter in the press release. “The significant increase in our margins shows that the expected positive financial effects are bearing fruit and that we have made progress on our path to sustainable growth and profitability.”

    For the second half of the 2023/24 financial year, dormakaba is sticking to its targets for the year as a whole. The aim is to achieve organic sales growth of between 3 and 5 percent. In terms of profitability, dormakaba is aiming for an improvement in the EBITDA margin compared to the previous year’s 13.5 per cent.

  • Holcim posts record result

    Holcim posts record result

    Holcim generated sales of 27.01 billion Swiss francs in the 2023 financial year, the globally active Zug-based building materials group announced in a press release. This corresponds to a year-on-year decline of 7.5 percent. On an organic basis, however, growth of 6.1 per cent was achieved.

    Holcim reported a record recurring operating result at EBIT level of 4.76 billion Swiss francs in the year under review. The corresponding margin rose from 16.3 percent to an “industry-leading” 17.6 percent, writes Holcim. At 3.09 billion Swiss francs, net profit before impairments and disposals was 39.3 percent higher than in 2022. “With record results in 2023, Holcim is stronger today than ever before,” said Jan Jenisch, Chairman of the Board of Directors and CEO of Holcim, in the press release. “We were able to implement our Strategy 2025 two years earlier than planned.”

    Holcim can also point to successes in terms of sustainability. For example, CO2 emissions in relation to sales were 20 per cent lower in the reporting year than in the previous year. At 8.4 million tonnes, 24 percent more construction and demolition material was recycled than in the previous year. Six Holcim projects for carbon capture, utilisation and storage are now registered for funding from the European Union’s Innovation Fund. In addition, Holcim’s low-emission cement ECOPlanet already accounted for 19 percent of Group-wide cement sales in 2023. In the previous year, the share was still 7 percent. At the same time, the share of low-emission concrete ECOPact in ready-mix concrete sales rose from 13 to 19 percent.

  • Thurgau government rejects property tax on second homes

    Thurgau government rejects property tax on second homes

    In its official statement on the proposal, however, the Government Council expresses considerable reservations and shares the sceptical view of the FDK. Although the FDK recognises the intention behind the proposal for a system change, it warns of the potential financial risks for mountain and tourism cantons and the possible implications for the national fiscal equalisation system. The introduction of a property tax would also entail practical challenges in terms of delimitation and additional costs during implementation. The majority of the FDK sees no current need to revise the existing system of residential property taxation, as the taxation of imputed rental value is considered appropriate for constitutional, economic and systematic reasons.

    In addition, the cantonal government emphasises that an amendment to cantonal tax legislation would be necessary, which could considerably prolong the legislative process. There is a risk that the legal framework for the introduction of a property tax will not yet exist at the time of the possible abolition of imputed rental value taxation on second homes.

  • Residents of Eastern Switzerland would reduce living space

    Residents of Eastern Switzerland would reduce living space

    Nikola Vukovic and Raphael Dietrich have developed options for easing the housing market in Eastern Switzerland in their final thesis for the Master’s degree programme in Real Estate Management at OST – Ostschweizer Fachhochschule. “The Swiss population lives too generously,” Vukovic and Dietrich are quoted as saying in a corresponding OST press release. However, according to the findings of the two researchers, many residents of Eastern Switzerland would be prepared to reduce their living space.

    Specifically, 43 per cent of 379 participants in a survey as part of the master’s thesis stated that they could do without living space. A guest room or a hobby room were particularly frequently rated as unnecessary. However, alternatives are needed, “such as a central guest room that would be easy to rent in the flat block,” explains Vukovic.

    The Master’s students have also identified a high level of willingness among the population to move into a smaller flat. However, the problem here is that there are not enough small flats available, according to the press release. The price can also be an obstacle: “Nobody would give up a four-room flat for 1,000 francs for a smaller flat that costs the same or more,” says Vukovic.

    Urban centres could be eased by moving to more rural regions. In the survey, around 95 per cent of respondents indicated a willingness to do so. “However, the respondents would not move without conditions,” explains Dietrich. “Incentives would have to be created to encourage people to move away from urban centres.”

  • Evorest launches digital investierte Mietkaution

    Evorest launches digital investierte Mietkaution

    Evorest offers Swiss tenants the opportunity to invest their rental deposit in funds instead of keeping the money in low-interest accounts. The Zurich-based fintech, which was founded last year, has selected “ten tried-and-tested ETFs from leading providers such as UBS and iShares from Blackrock”, explains Evorest in a press release. When invested here, the deposits should “grow with the market and generate a return at the same time”.

    Property owners and managers take no risk with the deposits they invest. The rental deposit is guaranteed by Evorest for the full amount paid. In the event of rising prices, there is even higher loss cover.

    Evorest has teamed up with Hypothekarbank Lenzburg to implement the new solution. There, the deposits are paid into a rental deposit account in the tenant’s name with an associated custody account. The account is opened and paid into digitally via the open banking interface of the Finstar banking platform. If you do not wish to invest, you can also set up a traditional rental deposit account with Hypothekarbank Lenzburg. All deposits can be made completely digitally in just a few steps within a single day.