immo!nvest – Die Plattform für Standorte und Immobilien

Category: Business

  • Canton of Lucerne plans investments in living and business location

    Canton of Lucerne plans investments in living and business location

    The canton of Lucerne is planning an investment offensive to promote the location. Due to international tax developments such as the OECD minimum taxation, the canton is “losing its competitive advantage of low corporate profit taxes for large international companies”, explained the cantonal state chancellery in a press release. Specifically, there are fears that affected companies will relocate or limit their investments in the canton. The cantonal government wants to counteract this with targeted investments in the canton as a place to live and do business.

    A proposal submitted for consultation by the cantonal government on 10 March envisages investing CHF 300 million a year in a broad package of measures from 2026. “The canton of Lucerne is doing well, so we have the opportunity to invest in our living and economic environment and remain attractive in the long term,” said Fabian Peter, Head of the Cantonal Department of Building, Environment and Economic Affairs, in the press release. “That is the aim of this bill.”

    Two thirds of the funds will be used to strengthen the business location. The focus here is on promoting innovation and improving the framework conditions for digitalisation, the availability of business premises and customer-oriented administration. Of the remaining CHF 100 million in favour of the people of Lucerne, the lion’s share of CHF 70 million is earmarked for a reduction in the tax rate for natural persons.

  • Housing cost gap widens further

    Housing cost gap widens further

    The updated Housing Market Monitor published by the Federal Office for Housing shows a differentiated trend for 2024. While demand for high-priced flats is falling slightly, the search for upper middle-class households and above remains increasingly difficult. Regions with a limited supply of housing, such as Central Switzerland and mountain regions, are particularly affected.

    However, the greatest challenge is for the lower middle class and lower-income households. The scarcity indicator confirms that family homes in particular are difficult to find. Due to rising rents, many households are opting for smaller flats and compact floor plans, which is adding to the pressure in this segment.

    Housing cost gap between movers and settled tenants is growing
    One significant trend revealed by the Housing Monitor for 2025 is the growing gap between existing and available rents. While settled tenants and owners could benefit from stable or even falling housing costs, for example due to a possible reduction in rents as a result of the falling reference interest rate, new tenants and buyers will continue to be confronted with rising housing costs.

    Households that need to move are particularly hard hit. New tenancy agreements are often concluded at significantly higher prices than existing tenancies. This trend is further exacerbating social inequality on the housing market.

    Building applications as a glimmer of hope
    A slight easing of the situation could result from an increase in building applications and building permits, which have been on the rise again since 2024. However, these additional flats will not come onto the market until 2026 at the earliest. At the same time, growth in the housing stock remains insufficient to offset rising demand at less than 1% per year.

    Long-term challenges for the housing market
    The Housing Monitor shows that immigration remains a key driver of housing demand. While the differences between domestic and foreign households in terms of housing requirements have largely disappeared, the overall supply situation remains challenging.

  • Successful financing round enables expansion of concrete sensor technology

    Successful financing round enables expansion of concrete sensor technology

    Dietikon-based DuraMon AG successfully completed a financing round totalling 1.6 million Swiss francs for the seed extension in February, according to a press release. The round was led by venture capital and private equity investor QBIT Capital in Zurich, which had already led DuraMon’s seed financing round in June 2023. Sika in Baar, a key investor since June 2023, has extended its commitment by rejoining as a strategic partner alongside Helbling Equities and others, it added. The fresh capital creates the conditions for scaling and expansion beyond the DACH region.

    DuraMon is a spin-off of the Swiss Federal Institute of Technology in Zurich(ETH) that specialises in a new type of sensor technology that ensures long-term stable corrosion monitoring of concrete infrastructure such as bridges, tunnels, multi-storey car parks and parking garages. This enables the early detection and understanding of deterioration processes in concrete structures, according to the press release. This means that the right type of repair can be determined at the right time and in the right place in the structure, allowing building owners to optimise their maintenance strategies and reduce repair costs.

    The newly secured funding will enable DuraMon to automate and optimise key internal processes, namely automated data analysis and sensor installation, according to the press release. There will also be a strong focus on customer development and expanding DuraMon’s market reach beyond the DACH region into other European countries.

  • Higher margins through optimisation in the construction supply sector

    Higher margins through optimisation in the construction supply sector

    According to a press release, Arbonia, the Arbon-based building supplier, increased its turnover by 10.2 per cent to 556.3 million Swiss francs in the 2024 financial year despite a difficult situation, particularly in the German market. This includes the acquisitions of Dimoldura in Spain and Rozière in France as well as the Czech company Lignis. However, excluding currency and acquisition effects, a decline of minus 5.4 per cent was recorded, the report continues. This nevertheless represents an improvement on the previous year (minus 8.2 per cent).

    The decline was mainly due to a continued fall in volumes as a result of the ongoing decline in new residential construction activity combined with rising average labour costs and negative exchange rate effects.

    According to the press release accompanying the annual report, construction activity in Arbonia’s largest European markets did not yet recover noticeably in 2024. Instead, the second half of the year was weaker than expected in Germany, an important market for Arbonia: declining building permits and high financing costs are cited as problems here.

    EBITDA including special effects increased by 107.8 per cent to CHF 66.3 million in the financial year. This corresponds to an increase in the EBITDA margin from 6.3 to 11.9 per cent, according to the press release. This includes a profit of around 29 million Swiss francs from the sale of the Zelgstrasse site in Arbon. EBITDA excluding special effects increased by 22.1 per cent to 41.7 million Swiss francs. This corresponds to an increase in the EBITDA margin from 6.8 per cent to 7.5 per cent.

  • Berner Kantonalbank focusses on climate-friendly mortgages

    Berner Kantonalbank focusses on climate-friendly mortgages

    Berner Kantonalbank wants to significantly reduce greenhouse gas emissions from its mortgage portfolio by 2030. To this end, BEKB is supporting energy-efficient refurbishments with the introduction of myky mortgages, BEKB announced in a press release. They are based on the renovation calculator of the myky online platform.

    “Our customers benefit from preferential conditions when renovating their homes in an environmentally friendly way”, BEKB CEO Armin Brun is quoted as saying in the press release. “At the same time, we as a bank are promoting the reduction of CO2 emissions in our market area.” By 2030, emissions from financed residential properties are to be reduced by 45 per cent and those from other properties by 35 per cent.

    The myky platform was launched at the end of 2021 by BEKB together with Energie Wasser Bern and Gebäudeversicherung Bern. The start-up specialises in practical tips and tools to support homeowners. In addition to BEKB, 16 other cantonal banks are currently involved, represented by NNH Holding AG.

  • National Council wants to expand support for asbestos victims

    National Council wants to expand support for asbestos victims

    On Thursday, the National Council passed an amendment to the Accident Insurance Act by 130 votes in favour and 64 against. This is intended to ensure financial support for asbestos victims from the Swiss National Accident Insurance Fund. The decision was made against the will of a minority of the SVP.

    Closing the gap in support
    The amendment aims to secure the future of the Compensation Fund for Asbestos Victims Foundation. In future, Suva should be able to make contributions to support the foundation financially. However, these funds may only come from additional income from insurance against occupational accidents and illnesses so as not to affect premiums.

    Compensation for asbestos victims
    Asbestos, once popular for its practical and fireproof properties, was used for decades. The building material has been banned in Switzerland since 1989, but the illnesses caused by asbestos often only become apparent decades later. Every year, around 120 people are diagnosed with mesothelioma, a form of cancer of the pleura and peritoneum caused by asbestos fibres.

    Financial security for those affected
    The EFA Foundation is intended to compensate those asbestos victims who are not covered by compulsory accident insurance. Although these people receive benefits from health insurance and disability insurance, these often do not fully cover the costs. The foundation is based on voluntary contributions from the industry, but these have decreased in recent years.

    Criticism from opponents
    A minority of the SVP criticised the bill as “not fair to the polluter”. They feared that the amendment could lead to higher insurance contributions and demanded more contributions from the responsible companies. However, the minority was defeated in the Council, as all other parties supported the bill.

    Outlook
    The Suva Council will decide whether and how much money will be transferred to the EFA Foundation. The foundation will need additional funds totalling CHF 25 to 50 million by 2030. Next, the Council of States must decide on the bill.

  • Mortgage reference interest rate falls to 1.5 per cent

    Mortgage reference interest rate falls to 1.5 per cent

    The mortgage reference interest rate was set at 1.5 per cent, which corresponds to a reduction of 0.25 percentage points compared to the last published rate. This change is based on the volume-weighted average interest rate for domestic mortgage receivables, which fell from 1.63% to 1.53% as at 31 December 2024. The new reference interest rate will apply from 4 March 2025 and will remain in place until the average interest rate falls below 1.38% or rises above 1.62%.

    Effects on tenancies
    The reduction in the reference interest rate by 0.25 percentage points can mean a reduction of up to 2.91 per cent for tenants, provided the previous rent was based on a reference interest rate of 1.75 per cent. If the reference interest rate is higher than 1.75 per cent, the rent reduction is correspondingly greater.

    If the previous rent is already based on a reference interest rate of 1.5 per cent, there is no entitlement to an adjustment. If the reference interest rate is 1.25 per cent, the landlord’s entitlement to an increase is generally reduced to 3 per cent.

    Exceptions and additional factors
    Tenancy agreements with indexed or staggered rents and turnover rents for commercial premises are exempt from these regulations. Special regulations may also apply to subsidised flats.

    In addition to the reference interest rate, other factors such as changes in the national consumer price index (inflation) and changes in maintenance and operating costs can influence the rent structure. These factors may have to be included in the calculation.

    Quarterly adjustment
    The mortgage reference interest rate is announced quarterly by the Federal Housing Office (BWO) and published on the www.referenzzinssatz.admin.ch website. The next announcement is scheduled for 2 June 2025.

    This article provides a comprehensive and forward-looking overview of the effects of the reduction in the mortgage reference interest rate on tenancies in Switzerland.

  • Merger with strong figures Ina Invest and Cham Group

    Merger with strong figures Ina Invest and Cham Group

    Cham Group recorded a remarkable increase in the value of its property portfolio of CHF 184.7 million to a total of CHF 703.2 million in the last financial year. This positive development is attributable to several factors. Progress in the planning and construction development of the neighbourhood, high demand for the space being created and a favourable interest rate environment. These factors have significantly increased the Cham Group’s earnings potential.

    The Cham Group’s net profit totalled CHF 168.2 million, compared with CHF 15.6 million in the previous year. In addition, rental income increased by 9.8 per cent to CHF 8.1 million. The operating result before revaluation totalled CHF 6.7 million. With an equity ratio of 73.5 per cent and an unchanged dividend of CHF 12 per share, Cham Group has a solid financial basis.

    Operational strength despite special factors
    Ina Invest was operationally in the black in the past financial year, but suffered a net loss of CHF 17.4 million. This loss is mainly due to a payment of CHF 34.7 million to Implenia, which was made as part of the planned merger with Cham Group. Excluding this one-off effect and taking into account changes in market value, EBIT totalled CHF 20.4 million.

    Ina Invest’s property portfolio is estimated at CHF 862 million at the end of 2024, with revaluations of CHF 15.4 million. Rental income remained constant at CHF 15.4 million. Despite the challenges, Ina Invest plans to distribute a dividend of 20 centimes per share.

    Merger to form Cham Swiss Properties AG
    The planned merger of Ina Invest and Cham Group will create a new property company with a combined portfolio of around CHF 1.6 billion. The merged company will have a residential share of around 60 per cent and an equity ratio of around 57 per cent. This merger promises to combine the strengths of both companies and offer a diversified, sustainable property portfolio.

    The shareholders of both companies will vote on the merger at the Annual General Meetings on 31 March. The approval of the shareholders will be decisive in realising the strategic goals of the new Cham Swiss Properties AG.

    A strong future
    The merger of Ina Invest and Cham Group offers the opportunity to create a leading property company in Switzerland. With a high-quality, sustainable portfolio and a solid financial base, the two companies are well positioned to move into the future together. The synergies from this merger could lead to further increases in value and an improved market position.

    The property industry will be keeping a close eye on developments surrounding Cham Swiss Properties AG, as the merger signals the trend towards consolidation and strategic realignment in a highly competitive market.

    This more comprehensive article provides a detailed and forward-looking overview of the upcoming merger of Ina Invest and Cham Group, as well as their financial performance and strategic direction.

  • These cantons lead Switzerland

    These cantons lead Switzerland

    With the KIKI, the Lucerne University of Applied Sciences and Arts has presented an analysis model that measures innovation and creativity in the cantons. “The KIKI is the first cantonal index to analyse these key capabilities regionally and in detail,” explains Christoph Hauser, Professor at the Institute of Business and Regional Economics at Lucerne University of Applied Sciences and Arts. The index consists of 101 individual indicators, which are divided into four subject areas and eight thematic pillars. Data sources include the Federal Statistical Office and the federal innovation agency Innosuisse.

    Canton Zug leads the ranking
    Based on the data for 2024, the canton of Zug takes first place with just under 60 out of a possible 100 points. It is followed by Basel-Stadt and Zurich. The cantons of Vaud, Neuchâtel and Geneva are close behind in fourth to sixth place. Zug leads in the areas of knowledge, creation and growth, while Basel-Stadt has the highest score for creation. Zurich is well ahead in almost all indicators, except for growth.

    Diverse expressions of innovation and creativity
    The KIKI shows that innovation and creativity are expressed in many different ways. “There is no single, simple means of promoting this,” emphasises Hauser. The cantons at the bottom of the rankings achieve almost half the points of Zug, which is respectable given the high level. Uri with its good growth and Glarus with strong supporting factors deserve special mention.

    The eight pillars of the KIKI
    The KIKI is based on the Global Innovation Index (GII) and consists of input and output factors. Input factors favour innovation and creativity, while output factors measure their impact. The eight pillars include

    • Education and educational success: indicators on supply and success rates in education.
    • Research, development and knowledge: Statistics on research activities and expenditure.
    • Diversity: Diversity of society in terms of ethnic origin, gender and culture.
    • Supporting factors: Framework conditions that promote innovation.
    • Art and culture: Creative forms of expression and their promotion.
    • Patents, trademarks and designs: Protection and utilisation of intellectual property.
    • Companies and start-ups: Start-up activity and growth of companies.

    Innovation and economic strength go hand in hand
    The KIKI shows a close correlation between innovation, creativity and the economic strength of the cantons. Switzerland, which is recognised as the most innovative country in the world according to the Global Innovation Index, benefits from these capabilities. The analysis emphasises the importance of education, research and supportive framework conditions for economic success.

    This article provides a comprehensive and forward-looking overview of Switzerland’s most innovative cantons and the importance of innovation and creativity for economic growth.

  • Property company increases profit and reduces vacancy rate

    Property company increases profit and reduces vacancy rate

    The Zug Estates Group generated net profit excluding revaluations and special effects of CHF 36.9 million in the 2024 financial year, the real estate company, which focuses on the Zug economic and living environment, announced in a press release. This corresponds to year-on-year growth of 9.0 per cent. Shareholders are to participate in the profit with a 6.8 per cent increase in the ordinary dividend.

    The press release cites the Group’s property income as the growth driver. It increased by 5.5 per cent year-on-year to CHF 69.3 million. The Hotel & Catering segment contributed CHF 15.5 million to total income. Total operating income increased by 4.7 per cent to CHF 88.8 million.

    At CHF 58.7 million, Group profit including revaluations and special effects in 2024 was 142.7 per cent higher than in the previous year. The increase is primarily attributable to revaluation gains totalling CHF 24.8 million. In addition, Zug Estates invested a total of CHF 8.1 million in new construction and renovation projects in the year under review. At CHF 1.86 billion, the market value of the Group’s entire portfolio at the end of 2024 was 1.7 percent higher than the previous year’s figure.

    In addition, Zug Etates had a practically fully let property portfolio at the end of the financial year: The vacancy rate was reduced from 3.9 to 0.7 percent compared with the previous year, which was characterised by conversions. In the year under review, the Group was able to extend or conclude new commercial leases totalling more than CHF 5.4 million a year.

  • Raiffeisen analyses abolition of imputed rental value

    Raiffeisen analyses abolition of imputed rental value

    Raiffeisen has analysed the planned abolition of the taxation of imputed rental value for owner-occupied residential property. In the winter session in December, the Federal Parliament decided to change the system of home ownership taxation. Now the people have the final say at the ballot box, according to a press release from Switzerland’s second-largest banking group.

    If the proposal is accepted, homeowners would realise considerable tax savings in some cases, depending on the type of household, given the prevailing low interest rates. The housing cost advantage of home ownership over renting is growing steadily and could rise to up to 30 per cent over the course of the year.

    If the imputed rental value were to be abolished, home ownership would become noticeably more financially attractive overall in the current market environment and consequently also increase in value, according to Raiffeisen. However, homes in need of renovation are likely to lose value due to the elimination of deferred tax deductions as a result of the reform.

    “One of the potential losers of the reform is the construction industry. Although it is likely to benefit from many last-minute orders in the short term during the transitional phase until the reform comes into force, in the long term fewer funds will flow into the renovation of residential buildings due to the elimination of a large proportion of tax maintenance deductions,” Fredy Hasenmaile, Chief Economist at Raiffeisen Switzerland, is quoted as saying.

    If the prevailing interest rate environment remains unchanged, the tax authorities would also have to reckon with billions in lower revenues for years to come as a result of the reform.

  • Rents in Switzerland continue to rise

    Rents in Switzerland continue to rise

    The monthly rental index compiled by the digital property marketplace Homegate in collaboration with Zürcher Kantonalbank closed at 129.5 points in January. Compared to the previous month, the index rose by just 0.2 per cent, Homegate reported in a press release. In contrast, the property marketplace’s experts recorded a 3.1 per cent increase in asking rents across Switzerland compared to the previous year.

    Within the cantons, Homegate’s experts have observed significant year-on-year increases in many cases. In the canton of Graubünden and the two combined cantons of Appenzell, however, asking rents in January 2025 were 0.8 and 0.5 per cent lower than in January 2024. Appenzell continued the decline that began in the previous month. Graubünden, on the other hand, has somewhat offset the decline of the past two months, but remains below the level of around a year ago, according to the press release.

    In the eight Swiss cities included in the index, the experts have identified consistently rising asking rents over the past twelve months. In the press release, they highlight Lucerne and Basel with increases of 7.7 and 6.6 per cent respectively. Rents in Lucerne were 1.4 per cent lower than in December 2024. At -2.2 per cent, Lugano recorded the sharpest month-on-month decline. Rents in the city of Bern, on the other hand, rose by 0.6 per cent compared to December 2024.

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

  • Project planning credit for Lucerne theatre rejected

    Project planning credit for Lucerne theatre rejected

    With 15,033 votes against compared to 10,914 votes in favour, the project planning loan for the planned Lucerne Theatre was clearly rejected on 9 February 2025. The turnout was 49.67 per cent. The result spells the end for the “überall” project by Ilg Santer Architekten, which was intended as a new stage for music, spoken word and dance theatre.

    City Council expresses disappointment
    The City Council notes the vote with great regret. The planned further development of the Lucerne Theatre cannot be realised with this decision. City President Beat Züsli emphasises: “We have always said that there is no Plan B. What happens next is completely open. This result is a great disappointment for Lucerne’s culture.”

    The location and construction volume of the planned theatre in particular were repeatedly criticised in the public debate. Nevertheless, it is still too early to draw any definitive conclusions. The city council intends to carefully evaluate the results of the vote together with the partner organisations involved.

    Consequences for cultural policy
    The rejection of the loan presents the city of Lucerne with new challenges. The previous plans have been halted and it remains unclear how the future of Lucerne’s theatre can be shaped. Nevertheless, the city council emphasises the importance of dealing constructively with the vote: “It is now our joint task as a city community to find a new solution for theatre culture in Lucerne.”

    Despite the defeat, the city council would like to thank everyone who was involved in the project. The existing partnerships will continue to be cultivated and the impact of the result of the vote on cultural policy will be carefully examined.

  • Private investors drive innovation in Zurich

    Private investors drive innovation in Zurich

    The Zurich financial centre is not only an important centre for banks and insurance companies, but also a key factor for the development of young companies. Private investors such as private equity and venture capital companies, multi and single family offices as well as foundations support start-ups with targeted investments that promote innovation and economic growth.

    According to the new study “Zurich Financial Centre 2025/2026”, which was commissioned by the cantonal Office of Economic Affairs and the city’s Urban Development Department, 208 private equity and venture capital companies and over 2,800 foundations are active in the Zurich region. They employ a total of around 3800 people and have made a significant contribution to the development of Zurich as a centre of innovation over the last ten years.

    Growth and financing gaps in the start-up ecosystem
    Between 2014 and 2024, over 900 start-ups were founded in the Zurich region, raising a total of CHF 9.6 billion in various financing rounds. Almost half of the total financing volume of start-ups in Switzerland. In the case of companies whose investor structure is known, around one third of the funds come from regional investors.

    However, the study shows that many start-ups encounter financing hurdles in the next growth phase after initial support from accelerators, incubators and foundations. While private equity and venture capital companies are increasingly getting involved in expansion financing, a financing gap remains. This can lead to young companies moving abroad in order to secure capital for scaling up.

    Zurich as an attractive location for venture capital
    The Zurich region offers ideal conditions for investors thanks to its strong market environment, international network and the availability of highly qualified specialists. Single family offices in particular are playing a growing role, as they enable long-term investments in innovative projects. Swiss single family offices invest an average of 12 per cent of their assets under management in venture capital, of which around CHF 24 billion flows into projects within Switzerland.

    According to Michael Grass from BAK Economics, which conducted the study, it is crucial to close the financing gap in the growth phase of start-ups. This would not only secure the region’s innovative strength, but also reduce the risk of emigration.

    “Strengthening the investor location” initiative launched
    Based on the results of the study, the canton of Zurich is launching the “Strengthening the investor location” sub-project as part of the “Innovation Location 2030” initiative. The Department of Economic Affairs has been tasked with developing targeted measures to improve the attractiveness of the location for venture capitalists. The aim is to optimise the investment conditions for start-ups and scale-ups and expand financing opportunities in the region.

    Concrete strategies are to be developed through dialogue between politics, business and investors in order to further strengthen Zurich as a leading location for venture capital. The city of Zurich is already actively involved in promoting start-ups, including with incubators such as BlueLion and Startzentrum Zürich as well as the city’s KlimUp programme for sustainable innovations.

    The results of the initiative should help to further develop Zurich as a dynamic and competitive investment location and secure the business centre in the long term.

  • Europe needs more capital for start-ups

    Europe needs more capital for start-ups

    Europe’s economic strength depends to a large extent on technological innovation. However, access to capital remains a challenge for many start-ups in the growth phase. The new study “Mapping investors for European innovators”, published by the EPO’s Patent and Technology Observatory, shows that private and public investors play a crucial role in promoting new technologies. Compared to the USA, however, there is a lack of capital in Europe for later financing phases, which hinders the growth of innovative companies.

    Technology Investor Score as a guide
    To make it easier for technology-oriented companies to find investors, the EPO is introducing the Technology Investor Score. This new indicator shows the proportion of companies with patent applications in an investor’s portfolio. The TIS helps start-ups to identify suitable partners and promotes targeted investment in technological innovations.

    The study analysed over 6100 investors in Europe and 8000 investors in the USA and shows that 88% of European investors have companies with patents in their portfolio. However, only 8% of these investors focus primarily on start-ups with patents. A clear sign of restrained capital flows into innovative growth companies.

    Europe needs to invest in scaling
    A key problem in the European innovation ecosystem is insufficient funding in the late stages of development. While public investors such as the European Innovation Council, the European Investment Bank or national innovation agencies strongly support early-stage financing, there is a lack of private investors for scalable start-ups in Europe.

    The analysis shows that 62% of the 100 largest European private investors focus on early-stage financing, while only 22% invest in later stages. In comparison, 98 of the top 100 investors in the US are private investors, of which more than half invest specifically in scaling start-ups. This funding gap in Europe means that promising technology companies are moving abroad to find better conditions for growth.

    Targeted solutions for more access to capital
    To overcome these challenges, the EPO has added a new filter function to its Deep Tech Finder. The free online tool enables start-ups to conduct a targeted search for investors based on criteria such as financing phase, location and technology focus. This enables technology-driven companies to efficiently find investors who specialise in their specific needs.

    In addition, the Observatory for Patents and Technology offers a new information platform that provides detailed insights into financing strategies, investor profiles and the use of patents to raise capital. The aim is to support start-ups and SMEs so that they can realise their full innovation potential.

    Strengthening Europe’s innovative power
    The results of the study underline the need to optimise financing structures in Europe. Public funding alone is not enough to ensure the transition from idea to market maturity. More private capital is needed for later growth phases in order to keep innovative companies in Europe and remain competitive in the long term.

  • Prices for residential property down, rental prices continue to rise

    Prices for residential property down, rental prices continue to rise

    Prices for residential property fell in the first month of this year, SMG Swiss Marketplace Group(SMG) reports in a press release on the latest Swiss Real Estate Offer Index. Specifically, prices for condominiums in January were 0.6 per cent lower than in December 2024. At the same time, single-family homes were even 2.1 per cent cheaper. In contrast, asking rents rose by 0.9 per cent in the same period.

    Year-on-year, prices for condominiums were 1.0 per cent higher in January. At the same time, prices for detached houses rose by 1.4 per cent. The average price per square metre for condominiums is currently CHF 8834, according to SMG. For single-family homes, the average price per square metre is CHF 7591.

    “Overall, the Swiss property market continues to be characterised by low and possibly falling interest rates,” Martin Waeber, Managing Director Real Estate at SMG Swiss Marketplace Group, is quoted as saying in the press release. The purchase of property is therefore associated with lower financing costs. “However, anyone looking to move into a new tenancy will have to expect price premiums in the coming months due to the tight supply situation,” explains Waeber. The SMG Swiss Marketplace Group brings together the digital marketplaces of TX Group, Ringier and Mobiliar.

  • Property company increases profit and expands in asset management

    Property company increases profit and expands in asset management

    Swiss Prime Site is reporting a consolidated operating profit at EBITDA level of CHF 415.1 million for the 2024 financial year. This corresponds to year-on-year growth of 6.5 per cent, the Zug-based real estate company reported in a press release. At the same time, cash earnings per share rose by 4.2 per cent to CHF 4.22.

    Rental growth and the property portfolio as well as higher income in asset management contributed to the positive developments. Rental income increased by 5.7 per cent year-on-year to CHF 463.5 million. In Asset Management, the operating result at EBITDA level increased by 47 per cent to CHF 42.0 million. The acquisition of the Fundamenta Group’s property asset manager in April was the main contributor to this. Consolidated operating expenses fell year-on-year from CHF 269.4 million to CHF 257.0 million.

    The value of Swiss Prime Site’s property portfolio amounted to CHF 13.1 billion at the end of 2024. The company recorded positive revaluations of CHF 113.7 million. In the reporting period, 23 properties with a total market value of CHF 345 million were sold.

    “In the past financial year, the focus was on implementing our strategy of consistently focussing on our core competence of real estate,” said Swiss Prime Site CEO René Zahnd in the press release. “With the acquisition of the Fundamenta Group, we have become by far the largest independent property asset manager in Switzerland and cover focused strategies in both the commercial and residential segments with our investment vehicles.”

  • Key interest rate trend revives property market

    Key interest rate trend revives property market

    The Swiss property market continues to prove resilient despite challenges, CSL Immobilien explains in a press release accompanying its 2025 property market report. Macroeconomic uncertainties and increasing regulatory requirements are cited as such. On the other hand, the gradual reduction in key interest rates by the Swiss National Bank had a positive effect on market dynamics.

    In the rental property market, CSL Immobilien continued to see strong demand in the past year with a shortage of supply. As a result, asking rents rose significantly faster than existing rents and the vacancy rate fell to a record low, according to the press release. Due to the particularly sharp rise in asking rents in cities such as Zurich and Geneva, households are increasingly moving to urban centres with good transport links.

    Prices for residential property also continued to rise last year. According to CSL Immobilien’s surveys, prices in the Zurich economic area rose particularly sharply.

    The office market developed differently in 2024. The supply of available space in the conurbations increased, while rental prices in the periphery fell. In the city centres, on the other hand, rents rose as the supply of space continued to fall. In general, there was increased demand for ESG-compliant office space and flexible utilisation concepts.

    CSL Immobilien anticipates moderate but solid further growth for the current year. “Investors who remain agile and adapt their strategies will be able to successfully capitalise on opportunities in 2025,” Thomas Walter, CEO of CSL Immobilien, is quoted as saying in the press release.

  • Federal government adjusts cost limits for housing subsidies

    Federal government adjusts cost limits for housing subsidies

    The revision responds in particular to the high construction and transport costs in Alpine regions. Non-profit property developers in mountain regions now receive targeted subsidies, as it has been shown that the costs of building materials in these regions are significantly higher than in valley and midland areas.

    Increase in cost limits for affordable housing
    The cost limits for the construction, renovation and acquisition of housing were last adjusted in 2022. Since then, land and construction prices have continued to rise, making the new values necessary. This adjustment ensures that affordable housing continues to be subsidised and maintained.

    • Rental flats average increase of 5.3 %
    • Owner-occupied flats and detached houses Increase of between 4.0 % and 6.7 % depending on property type

    Promotion via guarantees and loans
    The federal government continues to promote housing indirectly, mainly via guarantees and the Fonds de roulement. The latter is managed by the umbrella organisations Housing Switzerland and Housing Cooperatives Switzerland and provides low-interest loans to non-profit property developers.

    Broad approval for the amendment to the ordinance
    The proposed amendment was submitted to the cantons and umbrella organisations for comment – all parties involved were in favour of the amendments. The new ordinance thus creates the basis for continuing to provide affordable housing even in times of rising construction costs.

  • Rising prices and a tight rental market

    Rising prices and a tight rental market

    Zürcher Kantonalbank (ZKB) has published its annual market analysis and confirms the further rise in property prices. Following growth of 3.7% in 2023, prices rose by 3.3% in 2024. Even if the pace has slowed slightly, the trend remains clear: residential property prices in Zurich have risen 2.5-fold in 20 years.

    It is interesting to note that despite lower interest rates, the expected stronger price increase failed to materialise. Demand was more subdued, particularly for new-build properties, which take longer to sell. Nevertheless, ZKB registered an increase in transactions in the second half of 2024, which indicates that demand is picking up again.

    Increasing shortage on the rental flat market
    The tense situation for rental flats continued in 2024. For the first time, the ZKB found that the number of sales advertisements was slightly higher than the number of rental offers – a sign of the continuing dwindling capacity on the Zurich rental market.

    Although the shortage was not quite as drastic as feared, ZKB anticipates a further decline in vacancies in 2025.

    Rents are also rising for existing tenants
    Rents in Zurich rose by an average of 4.5% in 2024 – a significant increase compared to the Swiss average of 3.3%. It is particularly noteworthy that not only new lettings but also existing tenancies were affected by increases.

    This trend is directly attributable to the reference interest rate increases from 2023, which had a delayed impact on rents. In the third quarter of 2024, existing rents in Zurich were 5.4 % higher than in the previous year, while they only rose by 3.3 % across Switzerland. The increase was even higher in the Lake Geneva region.

    Institutional landlords utilised their scope for rent increases more intensively than private owners. However, there are signs of a trend reversal: as the reference interest rate will fall in March 2025, many tenants are likely to demand a reduction in their rent.

    The Zurich property market therefore remains a dynamic field with rising prices for owners and increasing challenges for tenants.

  • Growth trajectory for solar-powered greenhouses

    Growth trajectory for solar-powered greenhouses

    Voltiris has received 4.8 million Swiss francs in a seed capital round for the power supply and electrification of high-tech greenhouses. The round was led by Zurich-based venture capital firm Equity Pitcher and 3M Ventures, the venture capital arm of 3M Company, based in St. Paul, Minnesota, USA. The ClimateTech venture capital fund Satgana from Luxembourg and several family offices have also invested.

    According to a statement from Voltiris, the fresh funds will “accelerate the large-scale commercialisation and further performance optimisation of the company’s proprietary spectral filter technology and increase returns for farmers at a time when energy independence and decarbonisation are more valuable than ever”.

    According to Voltiris co-founder and CEO Nicolas Weber, the company is currently expanding its presence “in key European markets such as France, the Netherlands, Belgium and Switzerland. We are also looking forward to further expanding our technological lead and making solar-powered greenhouses a cornerstone of sustainable agriculture.” The company will also be expanding its team in Switzerland and the Netherlands.

    In the past two years, Voltiris has entered into twelve commercial projects with renowned producers in Europe, entered into partnerships with energy suppliers such as Elektra Baselland and Romande Energie and received several industry awards. For example, Voltiris and its partners won the Greenhouse of the Future pitch competition at the end of 2024 and were among the top 100 Swiss start-ups last year.

  • New member of the Board of Directors strengthens growth of sustainable property platform

    New member of the Board of Directors strengthens growth of sustainable property platform

    Optiml has announced that Prof Dr Alexander von Erdély has joined the team as an angel investor. The 55-year-old, who holds a doctorate in civil engineering, has more than 30 years of management experience in the property sector. Three months ago, he took up his position as spokesman of the board of the German Federal Agency for Real Estate, which has around 18,000 federally owned properties in its portfolio.

    Prior to this, von Erdély was CEO of CBRE Germany, the world’s largest provider of commercial property services and investments, headquartered in Dallas and based in Zug, Switzerland. As a “passionate advocate for ESG, sustainability and innovation”, he is “a role model in his commitment to driving progress in property and urban development”, according to the spin-off from the Swiss Federal Institute of Technology in Zurich.

    The new board member will support Optiml in scaling its Real Estate Decision Intelligence platform. It provides property managers, investors and consultants with tools to achieve their goals in terms of profitability and sustainability. According to the information provided, it offers valuable insights into portfolios and building values as well as optimal decarbonisation and investment strategies and also detailed action plans for net zero refurbishment and compliance with ESG regulations, for example.

    According to a report by startupticker.ch, ten new customers from the DACH region and the UK are currently being integrated into the platform. The Zurich-based company is also working on adapting its solution to the regulatory peculiarities and calculation framework of the USA. CCO and co-founder Nico Dehnert calls the acquisition of the first customer in the USA, a real estate investment trust, “a significant milestone on our growth path”.

  • The Ypsomed Innovation Award 2025 was presented

    The Ypsomed Innovation Award 2025 was presented

    Yuon Control AG from Oberburg and based in Technopark Zurich has been awarded first place in the Ypsomed Innovation Prize 2025, which is endowed with 50,000 Swiss francs, Ypsomed announced in a press release. The spin-off from Bern University of Applied Sciences develops technologies for building automation and energy management. Yuon Control’s systems enable data from various sources to be used to analyse and optimise energy flows and building functions.

    Two other young companies were each honoured with a second prize of 25,000 Swiss francs. One of these is Santella. The start-up project at the University of Bern aims to reduce the use of antibiotics in animal husbandry. As a first step, Santella is developing vaccines for the poultry industry.

    The other second prize went to Xemperia from Bulle FR. The spin-off from the University of Fribourg aims to improve the early detection and monitoring of cancer. To this end, Xemperia is developing technologies that combine molecular diagnostics with data analysis and pattern recognition based on artificial intelligence.

    A total of 34 projects competed for the innovation prize. “We are delighted to be able to spotlight three outstanding projects again this year,” said Simon Michel, President of the Ypsomed Innovation Fund, in the press release from his speech at the award ceremony. They have “the potential to have a lasting impact on our economy and society – provided they find their way into practical application”. The Ypsomed Innovation Award aims to make a contribution to this.

  • Vaud economy between recovery and uncertainty

    Vaud economy between recovery and uncertainty

    Global economic tensions have increased in recent months. The OECD and the Swiss State Secretariat for Economic Affairs (SECO) point to risks, particularly from the new US administration and the unclear relations between Switzerland and the EU. While the US economy is growing more strongly than expected, the European economy remains weakened by structural challenges. The strong Swiss franc is slowing down export-orientated sectors, while domestic demand remains a stable pillar of the economy.

    Construction industry benefits from interest rate cuts
    The Swiss National Bank (SNB) has eased its monetary policy and lowered the key interest rate from 1.75% to 0.5%. This measure is creating a favourable investment climate, particularly in the construction industry, which is benefiting from falling financing costs. Forecasts for Switzerland as a whole predict growth of 1.5% this year and an acceleration to 1.7% next year.

    Sector development mixed picture
    While the industrial economy continues to be challenged, other sectors are showing mixed developments. The retail and hospitality sectors are struggling with a weak business climate, while the service sector is showing positive momentum. Particularly strong growth is forecast for the chemical and pharmaceutical industries, business services and the financial sector. The machinery and watchmaking industry could also benefit from the economic recovery in the medium term.

    Stabilisation with uncertainties
    The Vaud economy is looking forward to a year of opportunities, but also challenges. While key sectors are likely to benefit from a sustained recovery, geopolitical and currency policy uncertainties remain risk factors. The decisive factors will be how international trade relations and the domestic economy develop and the extent to which companies are able to react flexibly to changes.

  • The increasing billion-euro burden for reinsurers

    The increasing billion-euro burden for reinsurers

    The economic consequences of natural disasters reached alarming dimensions in 2024. Munich Re puts the total global losses at 320 billion dollars, of which 140 billion dollars were covered by insurance. This makes last year one of the most expensive since records began. Hurricanes, floods and forest fires in particular caused high costs and highlight the growing risks posed by climate change.

    The most expensive disasters of the year
    Hurricane Helene caused the most damage at USD 56 billion, of which only USD 16 billion was insured. Hurricane Milton caused damage totalling 38 billion dollars, with insurance cover of 25 billion dollars.

    The earthquake in Japan on New Year’s Day 2024 also caused considerable devastation, with damage totalling 15 billion dollars. Floods in Brazil, Valencia and Dubai exacerbated the global challenges.

    Climate change as a driver of extreme weather events
    Studies show that climate change is increasing the frequency and intensity of extreme weather phenomena. Although the number of tropical storms is not increasing, their destructive power is growing. 93 per cent of total global losses and 97 per cent of insured losses were caused by weather catastrophes.

    The increasing risks lead to higher insurance premiums. Particularly vulnerable regions with weak insurance cover are facing enormous challenges. Natural disasters claimed around 11,000 lives in 2024. Fewer than in previous years, but still significant.

    Insurance industry under pressure
    The costs of natural disasters are well above the average values of recent decades. The 30-year average of total losses is 181 billion dollars, the 10-year average 236 billion dollars. The loss amount of 320 billion dollars in 2024 shows the increasing threat.

    Rising insurance claims increase premiums and risk assessments. Regions with a high catastrophe risk could become more difficult to insure in future. At the same time, government protection measures are needed to protect private individuals and companies from the financial consequences of extreme weather events.

    Prevention is the key

    The rising costs of extreme weather events require investment in climate-resilient infrastructure. Tobias Grimm, Chief Climatologist at Munich Re, emphasises: “Everyone pays the price for worse weather extremes, but especially people in less insured countries with little financial strength for reconstruction.” The insurance industry and politicians are called upon to develop sustainable strategies to strengthen resilience. Only with preventive measures can the burden of climate disasters be reduced in the long term.

  • Digital property platform receives growth capital

    Digital property platform receives growth capital

    According to a press release, the Zurich-based real estate company Properti has secured Series A financing totalling 1.85 million Swiss francs. The company, which specialises in digital real estate transactions, plans to use the fresh capital to expand its market position. Properti intends to expand its digital platform Propchain. The tool allows various functions to be integrated into one interface. This should offer both owners and users equal advantages.

    “The market is certainly challenging for young companies like Properti. Nevertheless, Properti has achieved considerable success even in a volatile economic environment,” said Levent Künzi, CEO of Properti, in the press release. “With an open growth strategy, we are working closely with partners to further expand our end-to-end platform. Our team is characterised by a game changer mentality that enables us to consistently realise Properti’s vision.”

  • Collateral in the construction and property sector – What to look out for?

    Collateral in the construction and property sector – What to look out for?

    The usual means of security
    Collateral is ubiquitous in the construction and property sector. For the financing of land or residential property, mortgages (liens on real property) are in the foreground. Step-by-step transactions (e.g. the purchase of a plot of land or a flat) are usually secured with so-called promises to pay from banks. Abstract guarantees or sureties are then frequently used to ensure that construction work is carried out in accordance with the contract. Finally, it is also conceivable to hand over movable property as a pledge or to transfer (future) claims of one’s own company against third parties to a lender.

    Guarantees and sureties in particular
    With a guarantee, a bank or insurance company undertakes to pay the guarantee recipient an amount if certain conditions (e.g. a breach of contract) are met. If the bank/insurance company waives all defences and objections arising from the basic relationship, this is an abstract guarantee in accordance with Art. 111 CO. Such guarantees can be called with a mere notification, which is why they are often also called “guarantee on first demand”. In practice, such guarantees are used as performance, advance payment and warranty guarantees.

    In contrast, a surety is always dependent on the underlying transaction. The bank/insurance company is entitled to the same defences and objections as the principal debtor. The main case of application in practice is the joint and several guarantee, which is also specified in the widely used SIA-118 standard as standard security for liability for defects.

    The recipient of an abstract guarantee is in a better position and usually receives his money immediately. Guarantees are therefore expensive and the guarantor always requires security in the event of a claim. The need for security must be examined on a case-by-case basis and the form of the security must be weighed up.

    Guarantees – a world of formality
    Guarantees on first demand sound tempting because they are supposedly easy to handle. This can be deceptive: Firstly, the guarantee text must be checked, because not every guarantee is abstract. Then you need to keep an eye on the period of validity. When making a claim under a guarantee, the formal requirements in the guarantee document must be meticulously observed, otherwise payment may be refused (so-called guarantee rigour). Another decisive factor is the way in which the claim must be submitted to the bank/insurance company and with which declaration (directly, via a correspondent bank, etc.). It is worth checking this in advance.

    A guarantee is utilised – what needs to be done?
    When the guarantee is issued, it is important to ensure that the bank/insurance company undertakes to provide notification in the event of a claim. This gives the party against whom the guarantee has been issued the opportunity to have the bank/insurance company prohibited from making the payment by court order. However, it should be borne in mind that the courts will only prohibit a payout if the claim is clearly an abuse of rights. The hurdles are so high that payouts are very rarely prohibited.

  • Capital increase for healthcare properties and senior-friendly living

    Capital increase for healthcare properties and senior-friendly living

    The Swiss Life Investment Foundation wants to increase the capital of its Real Estate Switzerland Old Age and Health ESG investment group by a further CHF 200 million. The subscription period for the corresponding entitlements runs until 14 March, Swiss Life Asset Managers announced in a press release. According to the statement, the new funds will be used to acquire additional properties, invest in the portfolio and reduce debt financing.

    The Real Estate Switzerland Ageing and Health ESG investment group focuses on age-appropriate residential properties, care facilities and other healthcare properties as well as health promotion facilities. “With the opening of the investment group, we are offering a sustainable and future-oriented investment opportunity in real estate projects that addresses demographic trends and enables innovative living concepts for a self-determined life in old age,” said Stephan Thaler, Managing Director of the Swiss Life Investment Foundation, in the press release. The foundation, which is part of the Swiss Life Group ‘s asset manager, acquired two retirement centres in Frauenfeld and Ostermundigen BE in December 2024. At the end of 2024, the investment group comprised 18 properties with a total market value of around CHF 700 million.

  • Meyer Burger divests measurement technology subsidiary Pasan

    Meyer Burger divests measurement technology subsidiary Pasan

    Meyer Burger is facing major challenges and is focusing on a comprehensive restructuring programme. As part of these measures, the company has sold its wholly owned subsidiary Pasan SA, based in Neuchâtel. The transaction was completed on 27 January 2025.

    No details on buyer and purchase price
    The company did not disclose any information about the buyer or the financial details. It merely confirmed that the sale is part of the ongoing reorganisation measures.

    A pioneer in solar measurement technology
    Pasan specialises in high-precision measurement technology used in the production of solar cells and modules. The company was founded over 40 years ago and is one of the market leaders in this field. Around 30 employees and trainees are employed in Switzerland. The company also has a service team in Shanghai that looks after international customers.

    Looking to the future
    With the sale of Pasan, Meyer Burger is continuing to focus on its core strategy. The industry is watching with interest to see what further measures the company will take as part of its reorganisation.

  • Strengthening Europe’s innovation financing

    Strengthening Europe’s innovation financing

    Technology start-ups are crucial for the progress of disruptive innovations. However, financial hurdles are hampering their growth, as a new study by the EPO makes clear. A comparison with the USA shows that there is a lack of private capital in Europe, particularly in the later financing phases. This forces many innovative companies to look outside Europe for investors.

    A new evaluation system
    With the TIS, the EPO has developed a precise indicator to evaluate the specialisation of investors in patented technologies. The TIS is based on over 1000 individual values and indicates the proportion of patent-active companies in an investor’s portfolio. This enables start-ups to search specifically for investors who are particularly innovation-friendly.

    Public investors as a central pillar
    The study shows that public institutions play a key role in promoting innovation. Programmes such as the European Innovation Council, national funding agencies such as Innosuisse or Bpifrance and the European Investment Bank offer essential support in the early financing phases. However, there is a lack of seamless follow-up financing from private investors, which makes it difficult to scale up innovative technologies.

    A comparison of European and US financing models
    While 62% of private investors in Europe focus on early-stage financing, the proportion is significantly higher among the 100 largest US investors with a later-stage financing focus. 98 of the top 100 investors in the US are private, over half of whom specialise in growth financing. These differences illustrate the gap in the European capital structure.

    New digital tools for finding investors
    The EPO is expanding its digital tools to make it easier for start-ups to access capital. A filter has been added to the Deep Tech Finder that allows investors to be found specifically according to financing phase, location and technology field. This enables start-ups to efficiently identify suitable investors and improve their financing opportunities.

    Paths to a stronger innovation ecosystem
    The study emphasises the need for action to improve the networking of public and private innovation financing in Europe. With new digital tools such as the TIS and the Deep Tech Finder, the EPO is providing decisive impetus to close the financing gap and keep start-ups in the European market in the long term.