immo!nvest – Die Plattform für Standorte und Immobilien

Category: Business

  • Asking rents are developing differently

    Asking rents are developing differently

    The rental index, which is collected monthly by the digital real estate marketplace Homegate in cooperation with the Zürcher Kantonalbank , closed in May at 117.6 points, Homegate informs in a press release . Compared to the previous month, advertised rents increased by an average of 0.2 percent across Switzerland. The analysts of the index have observed different developments within the individual cantons.

    Rents have remained relatively stable in most cantons. In the canton of Geneva, asking rents in May were 1 percent lower than in April. In the cantons of Zug, Graubünden, Appenzell Innerrhoden and Appenzell Ausserrhoden, on the other hand, the analysts identified significant increases of between 1.1 and 4.1 percent. However, they mainly attribute the jump of 4.1 percent in the canton of Zug to a decline in the previous month.

    In the eight cities examined in the index, the analysts identified an increase in asking rents of 0.7 percent in St.Gallen and a decrease of the same amount in Geneva and Lausanne. The two cities in western Switzerland are also the only ones where analysts have observed a drop in asking rents year-on-year.

    When recording rental price changes for the rental index, the rental prices are corrected for different quality, location and size of the apartments, explains Homegate. This makes it possible to record the actual rental price development.

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

  • Zurich is the second best city in Europe for real estate investments

    Zurich is the second best city in Europe for real estate investments

    Zurich gained two places in the European Thematic Cities Index (TCI) compared to the previous year and is now in second place. London is in first place and Stockholm is in third place. According to a press release , this index from Swiss Life Asset Managers measures 135 European cities in 28 countries. He evaluates them on five core themes that shape a city’s real estate market: Change and Disruption, Climate and Environment, Communities and Clusters, Consumers and Lifestyle, and Connectivity. He wants to offer a comparability for real estate investments.

    The six Swiss cities in the ranking are all in the top 50 of the TCI. Among them, Zurich remains “the most dynamic and healthy city with the best networks”. Despite the lack of an international airport, Bern’s 9th place is now “the third most accessible city in the entire ranking”. Basel gains one place compared to the previous year and is in 7th place, Lausanne in 15th place. Geneva has gained the most with 16 places and is listed in 31st place. Due to its “less environmentally friendly mix of sectors and above-average car use”, Lucerne lost nine places and ended up in 41st place.

    According to the TCI, all six Swiss cities promise little growth potential despite their stability and attractiveness. According to this analysis, they are all among the eleven worst European cities in terms of this criterion. And as in the TCI 2021, this year’s analysis rates health as the weakest issue in Swiss cities.

  • Steiner Group: Pleasing annual result for 2021/2022

    Steiner Group: Pleasing annual result for 2021/2022

    At the beginning of 2020, Steiner AG announced the transformation of the business model with a focus on real estate development. The company was able to complete the first year of transformation on March 31, 2022 with very good results. In the year under review, the Steiner Group achieved consolidated sales according to Swiss GAAP FER of CHF 763.6 million. The business activities resulted in an extraordinary operating result of CHF 49.7 million before taxes and interest.

    In the fiscal year from April 1, 2021 to March 31, 2022, Steiner AG was able to record solid growth in all key areas of its core business. In addition to the strong real estate development business, the high level of construction activity at the TU/GU in western Switzerland also delivered a robust result. Profits from the sale of condominiums and developed projects to investors with a total market value on completion of CHF 880 million also contributed to the pleasing result. At the same time, new development projects with a projected market value upon completion of around CHF 1.5 billion were acquired. The development portfolio of ongoing real estate developments at Steiner AG has thus continued to grow and now amounts to CHF 6.4 billion.

  • No end to the boom in the Swiss real estate market

    No end to the boom in the Swiss real estate market

    Tenants who wish to move must be prepared for higher rents when looking for an apartment. After several months with practically unchanged values, landlords raised their price expectations by an average of 0.7 percent in May. The correction is almost as large as the change registered over the last twelve months (0.9 percent). This is shown by the Swiss Real Estate Offer Index, which is collected by the SMG Swiss Marketplace Group in cooperation with the real estate consulting company IAZI.

    However, the development of rents differs depending on the region. Apartment seekers in the greater Zurich region (1.8 percent) and in central Switzerland (1.2 percent) are confronted with a significant increase in asking rents. The surcharges are lower in the Lake Geneva region (0.5 percent) and in north-western Switzerland (0.4 percent), while in the central region (0.1 percent) and in eastern Switzerland (0.1 percent) there are practically no changes. In contrast, rents have fallen in Ticino (−0.8 percent).

    Home ownership: The boom is not over
    The real estate market is currently in focus mainly because of the high prices for residential property. Against the background of rising mortgage interest rates, many observers expect the situation to cool down soon. However, the asking prices are still on the rise, as the analysis of the advertisements in May shows.

    “For single-family houses, 1.0 percent higher values were required than in the previous month, for condominiums the price growth is 0.2 percent. The interest-related increase in financing costs does not seem to bother prospective buyers much. At least sellers are still assuming an increasing willingness to pay,” says Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group.

    As of May 31, 2022
    The Swiss Real Estate Offer Index is published on the websites of ImmoScout24 and IAZI AG.
    www.immoscout24.ch/immobilienindex
    www.iazi.ch/angeboteindexes

  • Second home prices soar

    Second home prices soar

    In a press release , the major Zurich bank UBS informed about an increase in the price of holiday apartments in the Alpine region. With a price increase of almost 10 percent, residential real estate has reached its highest level in the past twelve years. Arosa GR, Engelberg OW, Flims/Laax GR and the Jungfrau Region, where prices have risen by 15 percent, are most affected.

    Based on the findings of the Alpine Property Focus study, UBS explains the price increase, among other things, with a decline in supply and increasing demand. As a result of the corona pandemic, working from anywhere has become attractive. Many working people have moved their desk and primary residence to the holiday regions.

    Furthermore, held back sales have led to the tense supply situation on the residential real estate market. According to this, many owners would have refrained from a planned sale of the holiday apartment because of their own needs for their home office.

    The Second Homes Act, which has been in force since 2012, has also had an unfavorable effect, ordering a de facto freeze on the construction of second homes in tourist regions. However, the stable value of residential real estate is said to be unaffected by the lack of new housing construction.

    As a result of the high capital costs when buying a holiday home and rising interest rates at the same time, the demand for holiday homes is likely to fall again, according to experts. The real estate economist at UBS, Maciej Skocz, quoted in the study, also includes the increased energy costs and expects “a good third higher usage costs” for an “average holiday home” for 2023 compared to the “beginning of the second home boom in 2020”. In the medium term, the expected increase in the supply of second homes will regulate the current price explosion again.

  • Market for crowdfunding is growing significantly

    Market for crowdfunding is growing significantly

    The market for swarm financing grew significantly last year from CHF 606.6 to 791.8 million. According to a media release in the current crowdfunding monitor of the Institute for Financial Services Zug (IFZ), the Lucerne University of Applied Sciences and Arts found that this corresponds to growth of almost a third and represents another record value.

    Accordingly, the market for crowdlending, i.e. the brokering of funds for loans via online platforms to private individuals and companies, increased significantly by 35 percent and rose to CHF 607 million. The market for crowd investing, i.e. the online brokerage of investments in companies and real estate, grew to CHF 147 million. “In particular, investments in loans to real estate companies and direct investments in real estate have driven this growth,” says the press release.

    The volume of digital donations, known as crowddonating, and financial support for creative and cultural projects and campaigns via the internet, known as crowdfunding, on the other hand fell by 16 percent and was only CHF 38 million in 2021. The reason for this is that these two types of crowdfunding had recorded record values in the previous year due to the Corona crisis and several temporarily active crowdfunding platforms. Nevertheless, political campaigns generated significantly more money via crowdfunding in 2021. Here the volume rose from 90,000 to 800,000 francs.

    The authors of the study assume that the total volume of swarm financing on the Internet will increase to more than CHF 1 billion this year.

  • Epic Suisse goes to the SIX Swiss Exchange

    Epic Suisse goes to the SIX Swiss Exchange

    Epic Suisse has completed the IPO on the SIX Swiss Exchange , as stated in a press release . The entry expands the circle of listed real estate companies to 18 companies.

    According to SIX, the newcomer to the stock market finds the best conditions for achieving its growth goals. SIX CEO Jos Dijsselhof is quoted as saying that Epic Suisse is evidence of “the continued interest of investors in SIX-listed real estate companies”.

    Epic Suisse from Zurich emphasizes a broad base of investors who rely on the business model. The real estate company, founded in 2004, went public with an opening price of CHF 68 per share, which corresponds to a market capitalization of CHF 693 million.

  • Steiner remains on course for growth

    Steiner remains on course for growth

    According to a statement by the Steiner Group , the Zurich real estate company generated sales totaling CHF 763.6 million in the 2021/22 financial year, which ended on March 31, 2022. At the same time, the operating result before taxes and interest reached an exceptionally high value of CHF 49.7 million. The real estate service provider, which specializes in project development and implementation, has achieved “solid growth in all key areas of its core business”.

    Specifically, the report mentions a strong real estate development business, a high level of construction activity by the group’s total and general contractor in western Switzerland and profits from the sale of condominiums and developed projects. The group has thus completed its first year of transformation after the decision to focus on real estate development at the beginning of 2020 “with a very good result”, writes Steiner.

    In the year under review, Steiner was able to acquire new development projects with a forecast market value upon completion of around CHF 1.5 billion. Steiner explains that this has increased the group’s development portfolio to a volume of CHF 6.4 billion.

  • Millionaires store bitcoins in secret bunker in Uri

    Millionaires store bitcoins in secret bunker in Uri

    Millionaires store their bitcoin data in a bunker on Lake Lucerne. The reporter Joon Ian Wong of the news portal “Quartz” is one of the few people who have ever seen this place live. He visited the underground high-security wing and was able to take pictures and videos.

    It is not bitcoins themselves that are stored in the 10,000 square meter data center in the bunker, but so-called cryptographic keys. They are worth their weight in gold: Whoever has them has access to the corresponding balances in the Bitcoin network.

    Bitcoin storage is a popular target for hacking attacks. That explains the downright paranoid security measures in the bunker: Its exact location is secret. Anyone wishing to enter will be photographed and not only have to provide ID, but also their fingerprints before entering a bulletproof airlock. The bunker’s steel doors, which weigh several tons, are said to be able to withstand a nuclear attack. But of course thick walls and a secret location are not enough for digital values like Bitcoin. The data in the bunker is protected against electronic attacks by a sophisticated system.

    The bunker reaches 320 meters deep into the mountain and, according to Wong, consists mainly of three rooms that are connected by tunnels. The bunker was built in 1947 and was the Swiss Army’s secret headquarters during the Cold War. According to Wong, there are still areas that have remained untouched since then. For example, an old map room with huge maps on the walls, old radio equipment, conference tables.

    A “Quartz” reporter was able to take pictures and film in the high-security bunker.
  • Tangible assets become indispensable

    Tangible assets become indispensable

    Many are still talking about whether she’s coming – but she’s already here. The turnaround in interest rates has also reached Switzerland. The word turning sounds a bit bigger than what actually happened. It is simply a matter of a change of sign: For the first time in many years, the yields on medium- and long-term Swiss franc bonds are again nominally in positive territory. The same trend can be observed in the euro area and spreads in the peripheral countries are also widening.

    Is the real estate boom coming to an end?
     The reason for the nervousness on the interest rate markets is quickly found. Inflation is rising on both sides of the Atlantic – and now so fast that the US Federal Reserve is now clearly tightening the reins. That’s why everyone is now staring at the European Central Bank (ECB): Will it follow the USA and thus also burden the local economy with higher capital costs? And what would that mean for the Swiss National Bank (SNB)? Are we threatened with an end to the good economic environment and the long-standing real estate and material asset boom?

    Neither nor. Because the situation in Europe is fundamentally different than in the USA. First of all, real interest rates and, in some cases, nominal interest rates have been negative in the euro area and in Switzerland for years. This has never happened in the USA. Negative interest rates, such as those demanded by the ECB and the SNB for deposits for many years, are also unknown in the USA. Just like the negative interest rates for larger sight deposits that are now common here from commercial banks. Second, growth in Europe is structurally weaker than in the US. The American gross domestic product grew by 5.7% last year and even increased by 6.9% in the fourth quarter. This even puts inflation into perspective, which at 7.5% recently reached its highest level in 40 years. Employment in the USA has risen sharply and unemployment is falling. And at the same time, after two years of the pandemic, US citizens are sitting on a lot of money. All of this enables the Fed to fight inflation vigorously.

    Slow rate hikes
     The ECB, on the other hand, is stuck at low interest rates. Even if it did so to curb inflation, there’s no way it can raise rates as quickly and decisively as the Fed. Because the large amount of cheap money that they pumped into the market over the past ten years has increased the debt burden of the EU countries so massively that the central bank not only chokes off the upswing with a rise in interest rates, but also gives their own member states the air to breathe would take. Even the triple-A nation Germany is now stuck in the interest rate trap.

    As a result, the hands of the SNB are largely tied. On the one hand, the franc is stronger against the euro than it has been since January 2015. On the other hand, inflation in Switzerland is currently contained. The economic research center Kof expects consumer prices to rise by 2.0% in 2022 and by 1.3% in 2023. Rising energy costs are having less of an impact on the Swiss economy than the economic areas of the USA and the euro zone, and the strong currency generally has a price-inhibiting effect. If the SNB does not want to take the risk of an even stronger currency, it will have to wait for the ECB’s first interest rate hikes before it can move its key interest rates closer to zero.

    In other words, the monetary policy turnaround is here. But in Europe, including Switzerland, we do it in slow motion. The ECB will scale back its bond-buying programs; it doesn’t have the leeway for large rate hikes. The ECB must and will let inflation run its course for a while. The SNB is unlikely to be under pressure as inflation will remain moderate. It will proceed cautiously with regard to rate hikes.

    Tangible assets remain trumps
     In such an environment, investors are dependent on real assets, the only investments that offer them protection against inflation and prospects for returns. Investments in real estate and other tangible assets are therefore becoming indispensable, and because investment pressure is increasing, prices in the segment are also continuing to rise. What we are witnessing here is not bubble formation. Normal market forces are at work here. Anyone who fears a bubble in the USA can also relax: There, the yield levels for most asset classes – especially on the real estate markets – are structurally higher than in the euro area. This in turn acts as a buffer against rising capital costs. If the Fed is now planning to return to interest rate normality, this is no cause for concern, but rather proof of economic strength.

    We are a long way from that in Europe and in Switzerland. Instead, we must brace ourselves for a phase of persistently low real interest rates. In this environment, which penalizes holding cash and investments that pay nominal interest, equities, real estate and commodities continue to promise the greatest success. Against this background, securities of globally active real estate companies continue to show good prospects. In Switzerland, the real estate market has moved up sharply in terms of prices in recent years. From an economic perspective, however, there is little reason why prices should fall as long as negative real interest rates persist.

  • New initiative to strengthen Switzerland as a blockchain location

    New initiative to strengthen Switzerland as a blockchain location

    The Zug-based Swiss Blockchain Federation plans to launch the Home of Blockchain.swiss initiative on May 24 at the World Economic Forum in Davos. According to a media release , this is a public-private partnership under the patronage of Federal Councilor Ueli Maurer. It is also supported by the foreign trade promoter Switzerland Global Enterprise ( S-GE ), several cantons and CV Labs .

    The aim of the initiative is to show the advantages of Switzerland as a blockchain location abroad. For example, Swiss appearances at international conferences are to be organised. A media campaign is also planned.

    According to the initiators, Switzerland offers good breeding ground for blockchain companies. The “business-friendly framework conditions” are emphasized here. In addition, the Crypto Valley is a good example of success. A number of blockchain companies have already settled in the region, the heart of which is in Zug, such as Sygnum Bank and 21Shares .

    “The possibilities of blockchain technology are endless and Crypto Valley in Switzerland is at the forefront of this revolution. Now is the time to seize that opportunity. With Home of Blockchain.swiss, Switzerland’s good reputation will be carried out into the world,” Heinz Tännler, President of the Swiss Blockchain Federation and Finance Director of the Canton of Zug (SVP), is quoted as saying.

    The initiators also want to present the Swiss Digital Asset Market Report 2022 as part of the World Economic Forum. Among other things, providers of digital assets in Switzerland were surveyed for the report.

  • ZKB offers mortgages for non-profit housing developers

    ZKB offers mortgages for non-profit housing developers

    The Zürcher Kantonalbank is offering a new mortgage for housing cooperatives at favorable financing conditions. According to a press release , non-profit property developers benefit from a reduced interest rate of up to 0.5 percent. This applies both to the extension of existing loans and to a new mortgage.

    The basic requirement for the granting of the ZKB WohnPlus mortgage is that the apartment rents from the housing developer are at least 15 percent below the market rents. “We want to use this to maintain and promote non-profit and affordable housing,” Patrick Bühlmann, corporate customer advisor at Zürcher Kantonalbank, is quoted as saying in the press release. Because in the cities, above all Geneva and Zurich, rising rents are leading to a lack of affordable living space.

    In addition, applicants must meet 29 criteria, seven of which are basic criteria. If the applicant meets a further 14 criteria in stage 1, he will receive a maximum interest rate reduction of 0.3 percent. In order to receive the full 0.5 percent, he must meet a total of 21 requirements based on the United Nations Sustainable Development Goals ( SDG ), the Swiss Sustainable Building Standard ( SNBS ) and the ten guiding principles for non-profit housing in Switzerland.

    If level 1 is initially reached in a construction project, the property developer can prove further criteria later on. In this way, the bank wants to create an incentive “to make further improvements in terms of social performance even during the term”.

  • Asking rents remain stable in April

    Asking rents remain stable in April

    The monthly rental index collected by the digital real estate marketplace Homegate in cooperation with the Zürcher Kantonalbank ( ZKB ) was stable in April. According to the media release , asking rents in Switzerland rose minimally by 0.2 percent. The index now stands at 117.4 points. Asking rents rose the most in the last month, at around 1.7 percent, in the canton of Nidwalden. They have fallen significantly in the canton of Zug by around 2 percent. In the other cantons, asking rents also remained stable in April, with fluctuations of less than 1 percent.

    In the cities surveyed, too, the development of asking rents was similarly stable as at the cantonal level. According to the announcement, the biggest change was in Zurich, where asking rents rose by 1 percent. This continues a development of the last five months, in which asking rents there increased by 4.3 percent. Lugano reports the lowest value among the cities at 0.5 percent. Despite the decline in April, Lugano still recorded an increase of 2.1 percent compared to the previous year. However, Homegate reports that it is a long way from the peak in July 2016.

    When recording the rental price changes for the rental index, the rental prices are corrected for different quality, location and size of the apartments, the communication explains. This makes it possible to record the actual rental price development.

    Homegate was founded in 2001 and is a division of SMG Swiss Marketplace Group AG .

  • Edmond de Rothschild REIM finances repositioning of Hotel Londra

    Edmond de Rothschild REIM finances repositioning of Hotel Londra

    Hotel Londra, owned by Eurazeo and managed by Grape Hospitality, is located in the city center of Florence, close to the train station and the city’s main cultural attractions. The hotel was acquired by Eurazeo in December 2020. It is currently undergoing extensive refurbishment and conversion into a 160-room 4-star superior lifestyle hotel. The hotel is scheduled to reopen under the Intercontinental Group’s “Indigo” brand in Q4 2023.

    The financing has been structured in the form of senior secured bonds in which the two funds invest jointly. The closing was successfully completed on May 12, 2022.

    Eurazeo is a leading global investment firm with expertise in private equity, private debt, real estate and infrastructure. It manages a diversified portfolio with EUR 31 billion of assets under management, of which almost EUR 22 billion on behalf of third parties, invested in 450 companies.

    Grape Hospitality is a pan-European hotel platform founded in 2016 and majority-owned by Eurazeo. Grape Hospitality owns, operates and manages 106 franchised hotels with over 10,000 rooms and 70 restaurants in eight European countries.

    Ralf Kind, Head of Real Estate Debt at Edmond de Rothschild REIM, states: “This transaction is the first financing under our pan-European debt strategy in Italy and also the first in the hotel sector. Having already made four real estate debt investments in Germany, France and the Netherlands, this demonstrates our team’s ability to identify and execute attractive investment opportunities across Europe, backed by strong and experienced partners and sound financing structures . We will further intensify our international fundraising activities in order to expand the pan-European High Yield Debt Fund, which is to be finally closed by the end of 2022.”

    In March 2022, the Edmond de Rothschild REIM team completed another equity closing for its European High Yield I Real Estate Debt Fund, bringing the current equity commitments for the fund to over EUR 160 million. The final closing with a target of EUR 300 million is scheduled for December 2022.

    Edmond de Rothschild REIM was advised by Gianni & Origoni (Simone D’Avolio, Maria Rosa Piluso), Mayer Brown (Alban Dorin) and Nauta Dutilh (Nicolas Bonora).

  • Raiffeisen warns of housing shortage

    Raiffeisen warns of housing shortage

    With interest rates rising again, the “rule of thumb, now almost set in stone”, according to which owning is financially cheaper than renting, “has started to falter”, writes Raiffeisen Switzerland in a statement on the current issue of its quarterly study “ Real Estate Switzerland ”. However, there are still financing solutions that make home ownership more financially attractive than renting, the statement continues. In addition, the demand for one’s own four walls is also being driven by “various non-financial” aspects.

    However, the demand for residential property, which continues to rise, is “meeting on a supply that has now completely dried up,” explains Martin Neff in the press release. “Hardly any new properties are being built and existing owners only sell their houses and apartments in exceptional cases,” says the chief economist at Raiffeisen Switzerland.

    The analysts at Raiffeisen Switzerland have also noticed a shortage of supply on the market for rental apartments. Due to high vacancy rates, the construction of new apartments has already been curtailed in the past, writes Raiffeisen Switzerland. In addition, demand has increased due to demographic aging and a “trend towards individualization”. In 2021, the number of newly founded households exceeded the number of newly built apartments for the first time since 2009.

    “Housing production will not be able to keep up with demand in the future either,” predicts Neff. “So the housing oversupply that prevailed until recently could soon become a housing shortage.”

  • New myclimate calculator makes it easier to switch to heating

    New myclimate calculator makes it easier to switch to heating

    On the website www.myclimate.org/heizung , visitors only have to enter a few data for the calculation. The canton of residence, the previous heating (oil, natural gas), the planned new heating technology (heat pump or pellet heating) and the previous annual consumption are queried. Based on this information, the myclimate calculator provides an immediate overview of possible funding from the myclimate funding program for heating replacements in Switzerland.

    In addition to this information, the website also provides a link to the respective cantonal building program. This allows homeowners to find out directly about the cheaper offer for heating replacement. The myclimate contributions are sometimes higher than those of the cantons and sometimes heating systems that are not covered by the canton can also be subsidised. A cantonal subsidy can only enjoy automatic priority for the smaller heat pumps. The new website also provides this information.

    In order for owners to participate in the programs, certain criteria must be met. The subsidy program does not apply to new buildings. The new heating system must therefore replace an existing oil or gas heating system. There must still be no double funding. This means that no other financial aid from the federal government, canton, municipality or private individuals is required for the project. In addition, the order must not yet have been placed with an installation or planning company.

    Important tool for reducing CO2 emissions in the building sector

    In Switzerland, single and multi-family houses are still mostly heated with fossil fuels. They therefore make a significant contribution to Switzerland’s CO₂ emissions in the building sector. At the same time, in many properties – for example in around 70 percent of apartment buildings – gas or oil heating is still being replaced by a similar heating system, thus increasing dependence on fossil fuels. Technically, heat pump systems are now able to reliably and environmentally friendly not only provide the heat demand of individual houses but also of large buildings. Where the installation of a heat pump is not possible, wood pellet heating systems offer a climate-friendly alternative for single-family homes and apartment buildings.

    With financial support, the myclimate programs for heating replacements reduce the hurdle of high investment costs.

    These heating replacement programs can be implemented thanks to the contributions of the Foundation for Climate Protection and CO2 Compensation KliK and other partners.

  • Demand for condominiums is highly dependent on region and price

    Demand for condominiums is highly dependent on region and price

    The latest edition of the Online Home Market Analysis from the real estate portal Homegate and the Swiss Real Estate Institute (SwissREI) examines the advertisement data for condominiums for 2020 and 2021. The evaluated advertisements come from the four largest Swiss Internet portals and thus comprise around 85 percent of all online advertisements during the period under review. Detailed reports on the study for all regions can be found here in the online media release .

    For Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group, the latest online home market analysis shows how heterogeneous the Swiss condominium market is: “Overall, the demand for condominiums throughout Switzerland developed somewhat less dynamically last year due to the corona. However, certain market segments have seen lively demand over the past year, particularly in cities.” On average, the duration of advertisements in the low price segment has increased significantly in the cities examined, while it has remained practically unchanged in the higher price segment, although the number of advertisements has increased. “Similar to the rental apartment market, preferences in the condominium market have shifted away from smaller and cheaper to larger and more expensive properties during the Covid19 pandemic,” said Waeber, summarizing the study results.

    Longer advertisement duration despite smaller offer
    The significant increase in the average tendering period for condominiums from 61 to 84 days in 2020 compared to 2019 due to the Covid19 pandemic was confirmed at a high level in 2021 with 85 days. In comparison, the length of listings for single-family homes has fallen from just over 61 days in 2019 to pre-pandemic levels.

    On the other hand, around 20 percent fewer condominiums were offered online across Switzerland in 2021 than in the previous year. With such a severe shortage of offers, one would expect that the average duration of advertisements would also be correspondingly shorter. However, the fact that this has not shortened, but actually lengthened slightly, is evidence of a declining demand for condominiums across Switzerland for 2021.

    Prof. Dr. Peter Ilg, head of the SwissREI institute, sees several reasons for the weaker demand for condominiums: “Condominium prices in Switzerland rose by more than 8 percent on average in 2021. This is the strongest price increase in ten years. Such a significant increase in prices is likely to have had a dampening effect on demand in general. Increasing demand can only be seen in selected regions and in individual upper price segments, in which the buyers were probably able to increasingly resort to advance inheritances». This can be deduced, for example, from the distribution of taxable assets and homebuyers by age group. In the canton of Zurich, for example, the over-54s have more than half of the taxable assets, while across Switzerland the majority of home buyers are under the age of 55, Ilg continues. 

    Regional differences in the duration of advertisements are increasing
    From a regional perspective, the differences in the duration of advertisements in the eight major regions examined in 2021 have become more pronounced. In the Zurich region, where sellers have to advertise a condominium for the shortest time in Switzerland, the duration of the advertisement was reduced significantly by around a quarter to just 43 days (minus 14 days). In the two regions with the longest average duration of advertisements for a condominium, on the other hand, they continued to rise significantly, each at around 22 percent; the Vaud/Valais region recorded an increase of 18 to 98 days, Ticino by 25 to 139 days.

    In absolute terms, the greatest reduction in the length of advertisements was seen in the Central Switzerland region. After a decline of 19 days (minus 27 percent) for 2021 with 51 days, this region now has the second shortest advertisement duration of all eight regions surveyed, right after the Zurich region. The Geneva region, on the other hand, which still had the shortest advertisement duration in Switzerland at 52 days in 2020, fell back to third place in 2021 after an increase of 12 percent (plus 6 days).

    Increasing demand only in three out of eight regions examined
    The combination of the change in the duration of advertisements and the change in the number of advertisements allows conclusions to be drawn about the change in demand in the regions examined. In the three regions of Ticino, Vaud/Valais and Geneva, for the year 2021, despite a shortage of supply (i.e. a declining number of advertisements), there has been a significant increase in the duration of advertisements in some cases and thus a shrinking demand for condominiums. For the three regions of Central Switzerland, Northwestern Switzerland and Zurich, on the other hand, increasing demand (larger percentage decline in the length of advertisements than in the number of advertisements) can be observed. The other two regions (Eastern Switzerland and Espace Mittelland) show constant demand for 2021.

    Growth in demand for city apartments, especially in the upper price segment
    In addition to the eight regions, the Online Home Market Analysis also examines eight Swiss cities. When analyzing the demand for condominiums, a closer look at the price segment shows that demand in Basel, Lausanne, Geneva and Lugano in particular has increased. Both in the high price segment (CHF 1.5 million – CHF 3.0 million) and in the low price segment (CHF 0.3 million – CHF 0.5 million). In the high price segment, demand increased overall in six of the eight cities surveyed – in addition to Basel, Lausanne, Geneva, also in St. Gallen and Lucerne – while in the low price segment, the remaining four cities recorded constant or falling demand. This increased demand in the high price segment is now taking very different forms; While in Basel the declining length of advertisements in particular led to higher demand, in Geneva a much higher increase in the number of properties on offer compared to the length of advertisements indicated this conclusion.

  • Westhive takes in 6.3 million Swiss francs

    Westhive takes in 6.3 million Swiss francs

    Westhive AG has successfully completed a round of financing. According to a press release , Fairway Family Office , MA Ventures and other private and institutional investors have participated. With the fresh capital of CHF 6.3 million, Westhive wants to open up new co-working locations and further develop the software for management.

    In the rapidly growing market for flexible office space, the technological infrastructure sets the pace. According to the information, “access to the locations, the booking of meeting rooms, the discounts for the in-house restaurants” are controlled via the smartphone. The offices should offer users many conveniences and be functional. In addition to flexibility, this “high convenience” is a decisive advantage over conventionally rented office space.

    According to co-founder Andreas Widmer, the investments mean that the company, which was founded in 2017, is “an ideal starting point”. In addition to the growth capital, the new shareholders bring “great potential for synergies” to the company. Westhive members have access to the entire infrastructure for co-working spaces at all company-owned locations.

  • Home prices continue to rise

    Home prices continue to rise

    The prices for residential property continued to rise in April, according to the Freiburg real estate marketplace ImmoScout24 , which belongs to the Zurich SMG Swiss Marketplace Group . According to the latest Swiss Real Estate Offer Index compiled by the group in cooperation with the real estate consultancy IAZI , prices for single-family homes rose by 0.6 percent in April compared to March. An increase of 8.3 percent was measured over the last twelve months.

    Condominium prices rose even more sharply in April, up 1.4 percent month-on-month. Compared to April 2021, the analysts of the index have observed a price increase of 8.1 percent. In April, however, rents throughout Switzerland remained almost unchanged in both a monthly and year-on-year comparison. A slight decline in asking rents in the greater Zurich region offset increases in eastern Switzerland, north-western Switzerland and Ticino.

    For the future, the analysts are assuming a weakening of the price dynamics for residential property. “De facto, mortgage interest rates have been rising for several months, making real estate financing more expensive,” explains Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group, in the press release. “The more these costs rise, the more likely it is that prices will calm down.” The SMG Swiss Marketplace Group combines the digital marketplaces of TX Group , Ringier and Mobiliar .

  • Basel real estate remains a worthwhile investment

    Basel real estate remains a worthwhile investment

    Investment properties in the canton of Basel-Stadt would have proven to be a “crisis-resistant investment” in 2021 as well, according to the Basler Kantonalbank ( BKB ) in a statement on the real estate compass it created in cooperation with IAZI AG . According to the announcement, all property categories increased their performance in 2021 compared to 2020. According to the BKB, residential properties even achieved “a record-high overall performance” of 7.9 percent in the year under review.

    The analysts of the current real estate compass observed the greatest increase of 1.0 percentage points to 7.1 percent in mixed-use real estate. Office and commercial real estate lagged behind with a recovery of 0.4 percentage points to 3.8 percent.

    The increase in overall performance across all property categories was primarily due to increases in value, the analysts explain. Therefore, “a different picture” emerges from the gross return that excludes the increase in value.

    In the year under review, the analysts observed gross returns of less than 4 percent in Basel, Binningen and Bottmingen. In general, the more centrally located the property, the lower the yield. The analysts attribute this to the tightened law on housing subsidies, according to which rent adjustments as a result of renovations are “only possible to a limited extent”.

  • Holcim increases sales significantly

    Holcim increases sales significantly

    The building materials group Holcim , headquartered in Zug, is reporting positive economic figures for the first quarter of 2022. According to a press release , net sales rose from 5.36 billion francs to 6.44 billion francs. Sales thus increased by 20.1 percent. Operating profit (EBIT) rose by 16.3 percent compared to the same quarter last year to CHF 614 million. According to the announcement, EBIT and sales have reached a “record high”. According to the announcement, the roof systems segment developed particularly positively with an EBIT margin of 17 percent.

    “I am very confident about the record start to the year, which creates a solid basis for our ‘Accelerating Green Growth’ strategy 2025,” CEO Jan Jenisch is quoted as saying. For the first time, Holcim has published a sustainability report on the aforementioned “accelerated green growth”. “The report is a first in our industry and provides an overview of our decarbonization measures, which range from climate-friendly construction solutions to circular construction and next-generation technologies,” Jenisch continues.

    In the global overview of Holcim’s activities, North America with the USA and Canada is highlighted as growth markets. Argentina, Colombia and El Salvador also recorded good market growth in the Latin America region.

    Europe did extremely well. Strong pricing has allowed the company to contain the effects of cost inflation. There was also good market demand in Eastern Europe.

    In the Middle East and Africa, cost inflation has been absorbed well, the report says. Asia and Oceania was difficult given cost inflation. Better business in China and improved profitability in Australia helped partially offset weaker cement demand in the region.

  • Avobis takes over the credit factory and underpins its leading position in the area of mortgage servicing

    Avobis takes over the credit factory and underpins its leading position in the area of mortgage servicing

    Die Avobis Invest AG übernimmt die Kreditfabrik AG rückwirkend auf den 1. Januar 2022 mitsamt dem Kundenstamm und den Kreditspezialisten und untermauert damit die Führungsposition im Bereich des Hypotheken-Servicings. Mit den übernommenen Kundenbeziehungen verwaltet Avobis nun ein Kreditvolumen von über zwölf Milliarden Franken und baut damit seine Nummer 1-Stellung im Markt noch weiter aus. Zudem verfügt die Avobis Invest AG über eine Bewilligung der FINMA als Vermögensverwalterin für kollektive Kapitalanlagen und bietet mittlerweile das breiteste Dienstleistungsangebot für alle Kundensegmente im Markt an. «Das Hypotheken-Servicing ist für Avobis seit 25 Jahren einer der strategischen Grundpfeiler. Wir freuen uns sehr, dies mit der Integration der Kreditfabrik zu unterstreichen. Avobis ist nun der grösste Anbieter auf dem Schweizer Markt, der sowohl Pensionskassen, Anlagestiftungen, Versicherungen sowie auch alle Arten von Banken als Hypothekar-Servicing-Kunden mit der für sie passenden Lösung betreuen kann», sagt Andreas Granella, Geschäftsführer der Avobis Invest AG. Auch Stefan Hermann, bisheriger Verwaltungsratspräsident der Kreditfabrik AG, ist überzeugt: «Unsere Kunden profitieren nun vom geballten Know-how und der Kompetenz beider Unternehmen – eine Win-Win-Situation für alle Beteiligten.»

    Neue Investitionsmöglichkeiten für institutionelle Anleger
    Die Avobis Invest AG plant zudem, den Bereich der Investmentprodukte weiter zu verstärken, um die Position als One-Stop-Shop für alle Dienstleistungen entlang der gesamten Immobilien-Wertschöpfungskette zu stärken. Dafür soll die bereits seit 20 Jahren bestehende Palette an Anlagemöglichkeiten für institutionelle Investoren um weitere Investmentprodukte erweitert werden. Die Entwicklung erfolgt in den nächsten 12 Monaten und ermöglicht Investoren spannende Anlagemöglichkeiten auf der Aktiv- sowie auch auf der Passivseite der Bilanz.


    Medienkontakt
    Nicole Fankhauser
    Communications Manager
    Tel. +41 58 255 39 42
    communications@avobis.ch

  • Sika presents a strong start to the year

    Sika presents a strong start to the year

    Sika closed the first quarter of 2021 with record sales of almost CHF 2.40 billion, the Zug-based building materials group, which operates worldwide, announced in a press release. In a year-on-year comparison, this corresponds to growth of 20.0 percent. In local currencies, growth of 21.9 percent was realized, writes Sika.

    All of the Group’s market regions contributed to the good development with double-digit growth rates in local currencies. The strongest growth was realized in the Americas region at 36.2 percent. In the region with the highest sales, EMEA (Europe, Middle East, Africa), sales increased by 18.1 percent to CHF 1.04 billion.

    For the year as a whole, Sika is aiming for sales growth of well over 10 percent in local currencies to total sales of more than CHF 10 billion for the first time. The operating result is to be increased disproportionately by at least 15 percent.

    Sika sees the construction sector being shaped “by the megatrend of climate change” and the associated shift to sustainable construction. According to its own statements, the group is well positioned here. “With our environmentally friendly and innovative solutions, we are positioning ourselves as a sustainability champion and, together with our customers, are making an important contribution to climate neutrality in the construction and vehicle industries,” said Group CEO Thomas Hasler in the statement. According to the announcement, the takeover of the former construction chemicals business of the BASF Group (MBCC Group), which was launched in November 2021, should also make Sika a “key player for more sustainability”.

  • GenTwo launches first real estate certificate in the Metaverse

    GenTwo launches first real estate certificate in the Metaverse

    Three companies are partnering to launch the Metaverse’s first digital real estate investment product, the Criptonite Metaverse Real Estate AMC. Zurich-based securitization specialist GenTwo Digital , Lisbon-based luxury brand NFT marketplace Exclusible and Geneva-based cryptocurrency asset manager Criptonite have joined forces. To celebrate the launch of the Actively Managed Certificate (AMC) Criptonite Metaverse Real Estate, the Crypto Night Party will be held in Decentraland on the evening of April 8th. This is GenTwo’s web3 conference organizer AssetRush ‘s first event.

    According to a press release , the focus of this “exclusive investment product” is digital luxury real estate, i.e. NFTs (Non Fungible Tokens), in the Metaverse, a future giant network of virtual worlds including a virtual economy and virtual societies. The investment product is intended to allow institutional investors to participate directly in the development of the Metaverse and digital assets.

    “We are proud to announce our next major Metaverse investment product given the incredible opportunities offered by the Metaverse,” GenTwo CEO Philippe Naegeli said. “We believe our curated luxury digital properties will give both new and crypto-savvy professional investors the confidence they need to take their first steps into the Metaverse,” said Exclusible co-founder Romain Girbal. “Thanks to this AMC, you don’t have to be a ‘geek’ to invest in the Metaverse.”

  • Raiffeisen expects prices to slow down for home ownership

    Raiffeisen expects prices to slow down for home ownership

    After rising in the previous quarters, prices for owner-occupied residential property continued to rise in the first quarter of 2022, Raiffeisen Switzerland informed in a statement on the current transaction price index of the cooperative banking group. The prices for single-family homes throughout Switzerland increased by 1.2 percent compared to the previous quarter and by 9.5 percent year-on-year. 0.2 percent more had to be paid for owner-occupied condominiums than in the previous quarter. Year-on-year, prices increased by an average of 6.6 percent.

    The price dynamics on the market for owner-occupied residential property have therefore weakened somewhat compared to the previous quarters, according to the statement. “Due to the recent sharp increase in mortgage interest rates and the restrictive equity and affordability requirements, which are increasingly restricting the group of buyers as prices rise, we expect the price dynamics in the market for owner-occupied residential property to continue to weaken,” says Martin Neff, Chief Economist at Raiffeisen Switzerland. quoted there.

    Viewed by region, however, there are major differences in the development of prices. The prices for single-family houses in the Lake Geneva region and in eastern Switzerland rose by 15.3 percent and 12.5 percent, respectively, above average in a year-on-year comparison. The lowest year-on-year price increase of 4.0 percent was registered in eastern Switzerland. In addition, analysts have observed above-average increases in house prices in tourist communities and urban centers.

  • Residential property prices continue to rise

    Residential property prices continue to rise

    The prices for residential property continued to rise in March, according to the Freiburg real estate marketplace ImmoScout24 , which belongs to the Zurich SMG Swiss Marketplace Group . According to the latest Swiss Real Estate Offer Index, compiled by the group in cooperation with the real estate consultancy IAZI , prices for single-family homes rose by 0.5 percent in March compared to February. An increase of 6.6 percent was measured over the last twelve months.

    Condominium prices rose 0.4 percent month-on-month in March. Compared to March 2021, the analysts of the index have observed a price increase of 8.0 percent.

    In March, on the other hand, rents throughout Switzerland remained constant both on a monthly and yearly basis. Slight declines in advertised rents in the regions of Central Switzerland, Greater Zurich and Northwestern Switzerland offset increases in the Mittelland and Ticino.

    “Although the war has not yet had any direct effects on the real estate market, it is likely to have an indirect impact on housing costs through energy prices,” said Martin Waeber, Managing Director Real Estate, SMG Swiss Marketplace Group, in the statement. “Should oil and gas remain at a high price level, this could lead to a significant increase in ancillary costs.” The digital marketplaces of the TX Group , Ringier and Mobiliar are combined in the SMG Swiss Marketplace Group.

  • Andermatt Swiss Alps is growing at double-digit rates

    Andermatt Swiss Alps is growing at double-digit rates

    In the 2021 financial year, the Andermatt Swiss Alps Group generated sales totaling CHF 201.1 million, according to the company responsible for the development, realization and operation of the holiday destination . In a year-on-year comparison, this corresponds to growth of 30 percent. The operating result at the EBITDA level increased by around CHF 20 million to CHF 25.3 million in the same period. A loss of CHF 8.0 million was reported as a net result. The Andermatt Swiss Alps Group writes that the result from the previous year was improved by CHF 24.4 million.

    “It is very gratifying that we were able to massively increase our sales and profitability in 2021,” said Group CEO Raphael Krucker in the statement. On the one hand, real estate sales worth CHF 122 million, up 58 percent year-on-year, contributed to the positive developments. On the other hand, the two hotels in the group, The Chedi Andermatt and Radisson Blu Reussen, reported a positive operating result for the first time due to the increase in sales and occupancy as well as the reduction in costs.

    The SkiArena Andermatt-Sedrun, on the other hand, continued to suffer from the consequences of the pandemic in the winter season and from the bad weather in the summer, the statement explains further. Specifically, Andermatt-Sedrun Sport AG’s sales of CHF 21.6 million were around 10 percent lower than in the previous year.

  • Investis grows profitably

    Investis grows profitably

    Investis generated total sales of 216 million francs in the 2021 financial year, the Zurich-based real estate group, which specializes in apartments in the mid-price segment in the Lake Geneva region, announced in a press release. In a year-on-year comparison, this corresponds to growth of 21 percent.

    The operating result at EBITDA level before revaluations increased by 18 percent to CHF 54 million in the same period. Operating profit at EBIT level increased by 73 percent to CHF 235 million. This includes a gain from revaluation effects of CHF 184 million.

    At CHF 235 million, net profit was CHF 99 million higher than in 2020. The real estate portfolio was valued at CHF 1.735 billion at the end of 2021. At the end of 2020, 1.490 billion Swiss francs were reported.

    Stéphane Bonvin, CEO of Investis Group, said he was “very proud of everything that has been achieved since our IPO in 2016”. “All of the targets we set for the IPO were exceeded.” According to Bonvin, both the real estate business and the real estate services business contributed to the good developments.

    For the near future, Investis assumes that demand for apartments in the Lake Geneva region will increase and prices will rise as a result. Here the group intends to further optimize its real estate portfolio in the current year. Digitization is to be promoted in the Real Estate Services division.

  • Miele's most successful business year with sales up 7.5%

    Miele's most successful business year with sales up 7.5%

    The business of the Miele Group was characterized by strong contrasting developments in the past year. On the one hand, the historic special boom caused by Corona provided a strong tailwind. On the other hand, Miele is also feeling the effects of the disruptions in the global supply chains, particularly in the case of semiconductors. Nevertheless, more devices were produced and sold in 2021 than ever before in the 123-year history of the premium brand. The order backlog at the start of the new year is also higher than ever, so the signs point to growth for 2022 as well. In order to shorten the sometimes significantly longer delivery times, Miele produces in all plants with the greatest possible capacity.

    On the other hand, the prospects for the further course of the year are shaped by the political and economic effects of the war in the Ukraine, where Miele, like in Russia, is represented with its own sales company. The management and staff of the Miele Group are deeply shocked by the suffering of the people in the war zone and on the escape routes. There is a great wave of willingness to help throughout the group, which starts with protecting the 54 Miele employees in Ukraine and their families, but also goes far beyond that. Due to the geopolitical situation and the resulting imponderables, the Miele Group has completely stopped supplying appliances to Russia with immediate effect and until further notice, in addition to the EU sanctions currently being imposed. Products for medical care are excluded unless they are also subject to sanctions. The company’s own shops (Miele Experience Center) and the web shop have been closed since last week and investments in the store have been frozen. The jobs of the more than 230 employees and their pay will be retained for at least six months.

    Positive development in all regions and product areas
     With the sales growth reported for 2021, the Miele Group has grown significantly faster than the long-term average, with Eastern Europe, China and the USA in particular making disproportionate contributions. In Germany, Miele achieved sales of 1.39 billion euros and thus gained a further 5.1 percent from a very high level. And Switzerland also played its part with the most successful financial year since it was founded. “We are proud that Miele Switzerland was once again placed with great confidence this year. It’s not for nothing that customers have voted us Most Trusted Brand for the fifth time in a row,” reports Rico Fallegger, Managing Director Miele Switzerland.

    Further information at: www.miele.ch

  • Subordinated real estate loans

    Subordinated real estate loans

    Subordinated loans as a complement to traditional financing
    In Switzerland, private real estate debt is increasingly establishing itself as an alternative form of real estate financing. This is mainly because structural changes in the traditional credit market and stricter regulations have led to traditional mortgage institutions becoming increasingly reluctant to lend capital. Private Real Estate Debt supplements the classic mortgage and is aimed at small and medium-sized real estate developers, among others, who are finding it increasingly difficult to obtain financing from traditional sources. Real estate companies and private property owners use this financing solution for reasons of yield optimization, freeing up capital and as a source of liquidity for asset reallocation. In any case, the financing is secured with subordinated promissory notes from Swiss real estate.

    The advantages for investors
     A regulated way is opening up for investors to invest in mortgage-backed loans. Credit checks and project security are of the utmost importance. Thanks to regular interest payments, the asset class has a fixed-income character related to the Swiss real estate market and only a low correlation to the stock markets.

    About Property One
     Property One is an independent, owner-managed group of companies owned by private shareholders, consisting of the public limited companies Property One Partners AG, Property One Investors AG and Property One Ticino SA. It provides services along the entire real estate value chain. The group combines the four business areas of investment management, development and planning, marketing and real estate family office under one roof. Property One combines real estate expertise with knowledge of financial investments. To date, credit requests exceeding an annual volume of CHF 1 billion have been processed. And so far, several hundred million francs in subordinated loans have been granted. The company employs over 40 real estate and finance specialists at the locations in Zurich, Zug and Ascona.

    CTA: Learn more about Private Real Estate Debt.

    The information in this document has been prepared with the greatest care and to the best of our knowledge, is intended solely for informational purposes and does not constitute investment advice. Opinions and assessments contained in this document are subject to change and reflect the point of view of Property One Investors AG (POI). No liability is assumed for the correctness and completeness of the information. Past performance is not an indicator of current or future development. This document is marketing material.