immo!nvest – Die Plattform für Standorte und Immobilien

Tag: finanzen

  • 1.47 billion in venture capital invested in Swiss start-ups in the first half of the year

    1.47 billion in venture capital invested in Swiss start-ups in the first half of the year

    In the first half of 2025, CHF 1.47 billion flowed into Swiss start-ups, an increase of 36 per cent compared to the previous year. This is the third-best result since measurements began. However, growth was driven by a small number of startups that raised large sums from international investors. The number of financing rounds fell for the third time in a row to 124, which corresponds to a decline of ten per cent.

    Biotech as a growth driver
    The biotech sector in particular produced a strong result. It set a new record with an inflow of CHF 705 million in capital. The previous record of CHF 436 million from 2021 was clearly surpassed. The reasons for this success lie in highly qualified start-up teams and technological developments based on excellent research.

    Recovery in ICT and fintech
    The recently weakening ICT and fintech sectors were also able to recover. General ICT start-ups recorded investment growth of 86 per cent to CHF 247 million. Fintech companies received CHF 153 million, which corresponds to an increase of 93 per cent. The number of transactions remains low, which indicates continued investor selectivity.

    Swiss startup ecosystem remains resilient
    Despite the uncertain market environment, the Swiss startup ecosystem is able to produce internationally competitive companies. One example of this is Sygnum Bank, which became Unicorn in the first half of 2025. The bank, which specialises in digital assets, was valued at over 1 billion dollars, a signal of the potential of innovation outside of the healthcare sector.

    Gloomy outlook among investors
    A broad-based survey shows that expectations for the coming twelve months are subdued. Fundraising and more difficult exit opportunities are of particular concern. International trade barriers, on the other hand, only play a subordinate role. Access to capital is likely to remain challenging for many start-ups, despite individual success stories.

  • Europe’s electricity mix is changing

    Europe’s electricity mix is changing

    Germany produced around 40 terawatt hours of solar power between January and June 2025, an increase of 30 per cent compared to the same period last year. France, Belgium, Denmark and Poland also recorded growth in photovoltaics. The expansion is having an impact, but the parallel lull in wind power weighed on the overall balance. At 60.3 TWh, wind power generation was around 18% down on the previous year. As a result, the share of renewable energies in net public electricity generation in Germany fell slightly to 60.9% (2024: 65.1%).

    Europe-wide trend with regional differences
    Within the EU, combined electricity generation from wind and solar fell slightly to 344.4 TWh in the first half of 2025, compared to 358.1 TWh in the previous year. The figures from Fraunhofer ISE show that while solar expansion is bearing fruit in many countries, meteorological fluctuations such as wind lulls are having a greater impact.

    Electricity trading adapts to
    Germany imported 7.7 TWh of electricity in the first half of the year, primarily from Scandinavia, where wind and hydropower continue to offer favourable prices. These imports were more attractively priced than domestic electricity from fossil-fuelled power plants. Exports went to Austria, the Czech Republic and Poland, among others.

    Electricity prices rise slightly – customer prices stable
    After falling in recent years, the average exchange electricity price rose again to €86.64/MWh in the first half of 2025. The highest prices were recorded in January and February, when there was little wind. At an average of 27 cents per kilowatt hour in June, electricity prices for new customers were back at the 2021 level.

    CO2 costs and gas prices on the rise again
    In parallel with the electricity market, CO₂ certificate prices rose by 11 per cent compared to the previous year, and natural gas was also more expensive than in the first half of 2024. These developments illustrate how sensitively the energy market reacts to fluctuations in supply and political conditions and how important a sustainable, resilient energy infrastructure is.

  • Apply now for the Digital Journey Challenge 2025

    Apply now for the Digital Journey Challenge 2025

    The digital transformation is unstoppable and offers enormous opportunities for small and medium-sized enterprises in particular. The Digital Journey Challenge 2025, launched by the Centre Suisse d’Électronique et de Microtechnique (CSEM), is aimed at companies and start-ups that want to take their innovative strength to a new level with digital technology.

    The focus is on promoting pioneering projects in areas such as artificial intelligence, the Internet of Things (IoT), automation and other key technologies. Applicants receive professional guidance, technological expertise and up to CHF 100,000 in financial support.

    Three strong arguments in favour of your participation
    Technology Boost
    Access to CSEM expertise in eight key technologies

    Financial support
    Up to CHF 100,000 for development time, consulting and technology transfer

    Strengthen market position
    Greater visibility, more media presence, access to expert networks

    Simple application process, big impact
    Participation is straightforward. Interested parties download the factsheet, describe their idea and submit the form. All information and conditions are available on the CSEM website. The application deadline is 15 September 2025.

    Success story
    The 2024 winning project shows just how effective the challenge can be. Varioprint AG impressed with its AI-supported 3D inspection solution for printed circuit boards. Their project “AI in Every Pixel” addresses a global growth market and accelerates quality control in the electronics industry in the long term.

    Apply now and play an active role in shaping your digital transformation.

  • Robust market in Lucerne

    Robust market in Lucerne

    The commercial property market in the canton of Lucerne is proving resilient, even in the international context of economic uncertainty. Switzerland’s gross domestic product grew by 1.3 per cent in 2024 and is expected to rise to 1.5 per cent in 2025. The canton of Lucerne benefits from its broadly diversified economic structure with strong sectors such as construction, finance and services.

    Bottleneck meets demand
    Demand for office space remains high, fuelled by continued employment growth in the service sector. At the same time, the construction volume of around CHF 50 million is well below the long-term average. This reluctance to construct new buildings is further reducing supply, causing rents to rise moderately but continuously – by an average of 10 per cent since 2015.

    Structural change weighs on
    Despite stable consumption indicators, the market for retail space remains under pressure. Online retail, changing consumer behaviour and geopolitical uncertainties are putting pressure on even highly frequented locations. Falling asking rents point to a prolonged period of weakness – there is currently no recovery in sight.

    Solid basis, new risks
    At less than one per cent, the vacancy rate for industrial space is well below the national average. Demand is stable and projects such as new business parks in Lucerne and the surrounding area are signalling momentum. However, trade tensions, particularly with the USA, could slow down this trend and cause a slowdown in the medium term.

    Plenty of potential, but growing pressure
    The new study by Luzerner Kantonalbank and Wüest Partner paints a differentiated picture. Office and industrial space is benefiting from Lucerne’s attractiveness as a location and the strong domestic economy. Retail space, on the other hand, remains the problem child. Future developments will be largely determined by international conditions.

  • BLKB Fund Management AG launches sustainable property fund

    BLKB Fund Management AG launches sustainable property fund

    BLKB Fund Management AG, the Binningen-based subsidiary of Basellandschaftliche Kantonalbank(BLKB), has launched its first sustainable property fund. According to a press release, the BLKB (CH) Sustainable Property Fund will primarily invest in energy-efficient properties in Northwestern Switzerland and the neighbouring regions of Bern, Central Switzerland and Zurich. It is aimed at qualified investors who wish to invest in a high-quality property portfolio with a predominantly residential focus.

    The initial issue has a volume of up to CHF 160 million. BLKB also intends to invest in the fund. The proceeds of this issue are to be used to acquire a property portfolio with a market value of CHF 177 million. The portfolio, for which BLKB has already acquired seven of the eight properties in the past two years, consists of energy-efficient properties in good locations. It is characterised by a high proportion of residential properties with a low vacancy rate. Currently, 80 per cent of the property assets in the BLKB (CH) Sustainable Property Fund are located in Northwestern Switzerland.

    “The launch of the sustainable property fund with a focus on Northwestern Switzerland is an important milestone. The property sector offers attractive yield opportunities for investors and at the same time has a major impact on energy efficiency, which is particularly relevant for climate neutrality,” Michel Molinari, CEO of BLKB Fund Management AG, is quoted as saying in the press release.

    The subscription period is expected to run from 24 June to 23 July 2025 with payment on 30 July 2025.

  • Double-digit sales growth despite market challenges

    Double-digit sales growth despite market challenges

    Zehnder Group AG expects to improve its sales and profitability year-on-year in the first half of 2025. Specifically, the Aargau-based specialist for ventilation and radiators expects to achieve a double-digit increase in sales to between EUR 380 million and EUR 390 million, Zehnder announced in a press release. The target range for the EBIT margin is 8 to 9 per cent. In the same period last year, Zehnder realised an EBIT margin of 6.6 percent.

    The internationally active group of companies is basing its forecast on increased demand for Zehnder’s products in the ventilation segment in North America and Europe. Improvements in sales and profitability were also supported by the acquisition of the Spanish company Siber in summer 2024. By contrast, sales in the radiator segment are currently weaker than in the past. This confirms “the strategy of consistently focussing on ventilation system solutions”, writes Zehnder.

    The Group will communicate the unaudited figures for the first half of 2025 on 25 July. An outlook for the year as a whole will also be presented. Zehnder believes that the results in the second half of the year will depend on developments in its own customers’ inventory build-up, the impact of economic stimulus programmes in key markets and US customs policy. The company estimates the impact of any tariff extensions in the USA on its own business activities to be low.

  • 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.

  • Affordable living in Zug

    Affordable living in Zug

    The canton of Zug and the city of Zug suffer even more than other cantons and cities from a lack of living space. The canton of Zug has the lowest vacancy rate in the country at 0.2% for the fourth year in a row. The lack of supply and the persistently high demand are leading to strong competition for the few advertised rental flats: the re-letting period is record-breakingly short. There are plenty of affluent tenants moving in and out who are prepared to pay ever higher rents¹.

    Because asking rents are now 50% higher than the Swiss average, complaints that rental flats are no longer affordable have spread far into the middle classes². Even those with normal household incomes who want to move or relocate to the canton have little chance of accessing the housing on offer.

    In this context, the question arises as to what profit-orientated owners who have or would like to develop housing stock in the canton and city of Zug can contribute to the provision of housing for broad sections of the population.

    How should affordable housing be defined?
    The first question is how “affordable” housing should be defined. There is an object-orientated, a market-orientated and a target group-orientated approach³. Affordable housing can be defined as housing rents that are calculated using the maximum fixed investment costs for a residential property. For this calculation to work for yield-orientated owners, a consensus is needed on what constitutes a sensible limit for investment costs. The market-oriented approach categorises low-priced residential rents in certain quantiles of market rents. This requires a consensus on which quantiles are affordable. Finally, affordable housing rents are defined as those that are financially viable for tenants. This requires a consensus that households should not spend more than a third of their gross income – or more generously, their taxable income – on rent, for example.

    Room for manoeuvre via the subject-oriented approach
    The approach based on financial affordability is the most meaningful for a broad-based housing supply. Unlike the approach based on investment costs, this approach recognises that many people in the canton of Zug earn more than in other cantons and can therefore afford higher rents (Fig. 1). However, unlike the approach using the quantiles of market rents, it is not based on the willingness to pay of those moving in and out, but on the real income of the population. This approach helps to target the needs of specific income groups.

    An affordable flat for a person from the lower middle class living alone, who earns between 70 and 100% of the median income, should therefore cost between CHF 1,400 and 1,900 in the city of Zug. How much living space is offered for the price is decided by the provider based on his assessment of the marketability of a flat. Because affordability is based on the unit price of the flat and not the price per square metre, yield-oriented investors have more leeway to integrate affordable housing into their profitability calculations.

    Optimising the distribution of existing affordable housing
    Building flats takes a long time and is often associated with uncertain planning processes. Owners and investors are also not free to decide where and how much additional living space they want to realise. Owners have direct options for action with their portfolio: they can contribute to supplying the wider population if they optimise the distribution of their vacant rental flats. Every change of tenant offers the opportunity to consider the most suitable tenant in line with the “best owner principle”. Owners can instruct lettings teams to maximise the affordability of rental properties that are affordable to the middle class and choose the tenant who can least afford the property – assuming a full salary, for example. Letting teams simply need a matrix that shows them the maximum rental prices affordable for the middle class (or the targeted income group) for each number of rooms. If a vacant flat in the corresponding price range becomes available, the rule would apply.

    Conclusion
    In order to ease the situation in the housing market, the lengthy tasks of reducing barriers to housing construction and developing a cross-party understanding of how affordable housing is defined and how its provision should be regulated must be tackled. In the meantime, yield-orientated owners can make a contribution by approaching the provision of affordable housing with a subject-orientated approach that fits into their market logic. In doing so, they also remain fair to the legitimate interests of their direct stakeholders.

  • Record sales of Swiss multinational speciality chemicals group

    Record sales of Swiss multinational speciality chemicals group

    Sika set a new sales record in the 2024 financial year. At 11.76 billion Swiss francs, the record result of 2023 was exceeded by 4.7 percent, the global speciality chemicals company for construction and industry announced in a press release. Increased synergies from the integration of the construction chemicals business MBCC acquired in 2022 and local acquisitions of Kwik Bond in the USA, Vinaldom in the Dominican Republic and Chema in Peru contributed to the sales growth. Organic sales growth amounted to 1.1 per cent.

    In addition to the acquisitions, all regions contributed to the record sales. At 11.2 per cent in local currencies, sales growth was strongest in the Americas region. In the EMEA and Asia/Pacific regions, growth rates of 7.3 and 2.4 percent respectively were realised in local currencies.

    “Over the past twelve months, Sika has successfully held its own in a market environment that remains very challenging and achieved a new sales record,” said Thomas Hasler, CEO, in the press release. “Our growth initiatives, our powerful and sustainable innovations and our consistent sales strategy for further market penetration are successful and impressively demonstrate that we are gaining further market share.” Sika will communicate its full Annual Report 2024 on 21 February. The Group expects operating profit at EBITDA level to increase at a faster rate than sales.

  • Swiss Life Asset Managers increases dividend for property funds

    Swiss Life Asset Managers increases dividend for property funds

    The Swiss Life REF (CH) ESG Swiss Properties real estate fund closed the 2023/24 financial year with a profit of CHF 64.2 million, Swiss Life Asset Managers announced in a press release. The asset manager, which is part of the Swiss Life Group, intends to distribute CHF 58.3 million of this to investors. To this end, the dividend will be increased from CHF 2.60 for the previous financial year to CHF 2.70 per share.

    In the year under review, Swiss Life Asset Manager integrated 47 newly acquired properties into the fund. At the same time, the sale of seven properties generated a net capital gain of CHF 7.2 million for the fund. The value of the properties held over the entire reporting period increased by 0.4 per cent net year-on-year. Rental income was 4.5 per cent higher than in the previous year. The vacancy rate rose from 1.5 per cent to 1.6 per cent.

    At the end of the financial year on 30 September 2024, the fund comprised 201 portfolio properties with a total market value of CHF 3.21 billion. The net asset value per unit before distribution remained unchanged year-on-year at CHF 113.73.

  • Strategy presented for increasing operating result by 2030

    Strategy presented for increasing operating result by 2030

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

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

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

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

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

  • Expansion of renewable energy plants in Italy

    Expansion of renewable energy plants in Italy

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

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

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

  • Falling electricity prices in 2025

    Falling electricity prices in 2025

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

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

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

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

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

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

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

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

  • New professorships in Real Estate Economics & Finance from autumn 2024

    New professorships in Real Estate Economics & Finance from autumn 2024

    CUREM is pleased to announce a significant expansion of its academic focus. From autumn 2024, two new professorships in the field of “Real Estate Economics & Finance” will be established, supported by three major funding partners from the real estate industry. This step not only marks a milestone in the history of CUREM, but also sets new standards for cooperation between academic research and practice in the real estate industry.

    The creation of these professorships underlines CUREM’s role as a leading provider of further education and research in the property industry in Zurich. The close exchange between science and practice is of central importance: “We are firmly convinced that the interplay between academic research and practical knowledge forms the basis of excellent further education,” says the CUREM management.

    Academic excellence meets practice-orientated teaching
    Two renowned academics have been recruited for the new professorships, who enjoy both international and national recognition and share the vision of academic excellence and practice-orientated teaching: Prof Dr Christian Hilber and Dr Francisco Amaral.

    An international expert in housing policy and urban development
    Prof. Dr Christian Hilber will take up a part-time professorship ad personam (20%) at the University of Zurich from autumn 2024. Hilber, who is currently Professor of Economic Geography at the London School of Economics (LSE), brings with him outstanding expertise in the field of housing policy and urban development. These topics are also highly relevant for Switzerland, where housing policy is facing major challenges.

    “It is a particular pleasure for me to be able to contribute my experience in Zurich. Switzerland is facing major challenges in the area of housing policy, and I am convinced that together we can develop solutions that are both economically and socially sustainable,” emphasises Prof. Hilber.

    In addition to his academic career, Prof. Hilber has extensive experience in advising governments and international organisations such as the OECD and the Asian Development Bank. His work at CUREM will further strengthen international networking and the practical exchange of knowledge.

    Focus on financial and real estate economics
    Dr Francisco Amaral, who will be an assistant professor (100%) at the University of Zurich from October 2024, brings valuable expertise at the interface of financial and real estate economics. His research focuses on the interactions between risk and return in housing markets under different macroeconomic conditions.

    “In Switzerland, as in many Western countries, the housing market plays a central role in the financial stability and well-being of society. To develop sustainable measures that make the market more resilient and affordable, we need to understand what factors influence risk and return,” explains Dr Amaral, who holds a PhD from the University of Bonn.

    With his extensive research experience, Dr Amaral contributes significantly to the scientific consolidation and further development of CUREM, particularly in the areas of financial market analysis and real estate economics.

    Strengthening Zurich as a centre for real estate research
    The establishment of these professorships is not only a decisive step for CUREM, but also for Zurich as a location. The expanded scientific focus will further strengthen Zurich as a leading hub for property research and teaching in Europe. The close cooperation between science and practice will promote the transfer of knowledge and contribute to the development of innovative solutions for current challenges in the property sector.

    A pioneering step for the property sector
    With the new professorships in “Real Estate Economics & Finance”, CUREM is sending a clear signal for the future direction of real estate research and teaching in Zurich. The combination of academic excellence with practice-orientated knowledge will not only strengthen CUREM in the long term, but also the entire property sector. Prof Dr Christian Hilber and Dr Francisco Amaral will bring with them valuable experience and fresh impetus that will contribute to the further development of the institute and to overcoming the challenges of the housing market.

    This exciting development marks the beginning of a new era for CUREM and the property sector in Switzerland. We look forward to the future collaboration and the new perspectives that these professorships will open up.

  • Zug Estates places third green bond

    Zug Estates places third green bond

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

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

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

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

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

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

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

  • Zurich Investment Foundation plans capital increase

    Zurich Investment Foundation plans capital increase

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

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

  • Housing affordability in Switzerland

    Housing affordability in Switzerland

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

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

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

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

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

  • Aargau and Thurgau gain in importance for Zurich companies

    Aargau and Thurgau gain in importance for Zurich companies

    Every year, more companies move out of the canton of Zurich to other cantons than move in from there. On average over the decade from 2012 to 2021, the negative balance was 116 companies. This corresponds to around one per mille of the Zurich population. Although the balance is also negative in terms of the number of full-time positions, it is marginal in relation to the 1.1 million jobs offered by the Zurich economy in 2021. This is the result of an analysis by political scientist Peter Moser published by the Zurich Chamber of Commerce.

    If a company relocates, it is often to or from a neighbouring canton. Aargau is clearly in the lead with 18 per cent of the total number of company relocations between 2012 and 2021. According to Moser, this could also be due to the fact that “its economic area, for example in the Limmat Valley, has grown together with that of the canton of Zurich”. This is followed by the low-tax cantons of Zug (16 per cent) and Schwyz (13 per cent), followed by St.Gallen (10 per cent) and Thurgau (9 per cent), which is also low-tax. Financial service providers, on the other hand, prefer the cantons of Zug (40 per cent) and Schwyz (25 per cent).

    Aargau is a popular destination for industrial, construction and logistics companies relocating from Zurich. “They benefit from network effects and the land there is also likely to be somewhat cheaper for these industries, which tend to be land-intensive, than in the expensive centre of the Zurich metropolitan area,” says Moser. He believes that the fact that the production factors of land and labour are comparatively inexpensive there, as in Thurgau, is the main reason why these two cantons in particular have gained in importance as target cantons for migrating companies.

  • How a Switzerland of 10 million can succeed

    How a Switzerland of 10 million can succeed

    Lardi emphasised the need for better framework conditions to counteract the housing shortage. He presented four key demands. Energy-efficient refurbishments and adding storeys can create additional floor space without taking up new space. It is not about skyscrapers, but about moderate increases in the height of existing buildings. Conversion of office space into residential space, as the strict separation between residential and work zones is outdated. Mixed zones could reduce traffic congestion and create living space. Misregulations in rental housing law and tax privileges lead to an unfair distribution of living space. Liberalisation could free up older living space and stabilise prices. Objections and lengthy authorisation procedures are the biggest obstacles. These would have to be streamlined in order to create new living space more quickly.

    Important referendum
    The construction of new living space also requires the continuous renewal of the transport infrastructure. The strategic development programme for motorways is of central importance here. This proposal, which includes six major projects to eliminate bottlenecks, will be put to the vote in November 2024. The Swiss Association of Master Builders is in favour of voting yes to the proposal and is calling for an efficient mobility offering that combines all modes of transport. Lardi also emphasised the importance of the new environmental protection law, which adapts noise protection criteria and enables the construction of flats that were previously blocked for noise protection reasons.

    Illustrious guest appearances
    One of the highlights of the event was the presentation by Bertrand Piccard, who emphasised the role of the construction industry in the fight against climate change. Economist Martin Neff explained how a growing population influences a country’s prosperity and how more living space can be created by reducing regulations. Civil engineer Pirmin Muff presented practical implementation approaches for the construction industry. Cantonal Councillor Martin Neukom delivered the welcoming address from the host Canton of Zurich.

    HGC anniversary and construction party
    The major event, moderated by Mascha Santschi, concluded with a networking aperitif, dinner and the legendary construction party. Musical entertainment was provided by 21-year-old singer Joya Marleen from St. Gallen, one of the rising stars of the Swiss music scene.

  • New chapter for mortgage brokers with new offices in Zurich

    New chapter for mortgage brokers with new offices in Zurich

    The mortgage broker my hypotheca ag, managed by Rolf Zäch and Karim Schmid, is now working from the Atmos Tower in Zurich, according to a press release. After founding my hypotheca in 2021, the founders spent two years in the co-working space at JED in Schlieren to further develop their idea. Rolf Zäch comes from the property sector and Karim Schmid from the financing sector. Thanks to their independence and access to over 30 financial institutions, they were able to negotiate better conditions for property buyers and thus enable more people to realise their dream of owning their own home, according to the press release. The young company, now registered as my hypotheca ag, now employs nine full-time staff.

    Zäch und Schmid’s business model as a mortgage broker is customer-orientated in several respects, the press release continues. With the motto “Power of choice”, they offer customers access to over 30 financing partners. This broad selection makes it possible to find the best conditions on the market. Their large mortgage volume and direct access to financial institutions also ensure negotiating power and expertise to negotiate the best conditions for customers, the press release explains.

    Due to its growth, the company relocated its headquarters to the Atmos Tower in Zurich in January 2024. There, they have found flexible workspaces in Flexoffice ‘s new co-working centre. Flexoffice will open another co-working space in the new building next to the JED in Schlieren in autumn.

  • Building rights create affordable living space in Zurich

    Building rights create affordable living space in Zurich

    The Im Gut building cooperative has set itself the goal of comprehensively renovating and expanding its housing estates on Gutstrasse in Zurich-Wiedikon, which are characterised by a building fabric that is around 70 years old. As part of a master plan, the possibilities for the construction of non-profit flats as well as the establishment of a double kindergarten and the creation of communal and public-orientated usable areas are being explored. Two building plots, which were renovated in 2012 and 2014, are just the beginning. The next steps include the redesign of two further plots, which will be made possible by urban building rights.

    New residential concepts and the role ofmunicipal building rights
    The construction of 28 new flats is planned on the plot at Gutstrasse 146 to 152, while two listed buildings, including a residential tower block with 46 flats, will be renovated. The annual ground rent for this field amounts to around CHF 69,000. At the same time, the neighbouring plot at Gutstrasse 145 to 153 will be completely redeveloped and will provide space for 72 flats. The two building plots will thus provide a total of 146 affordable flats – an increase of 44 flats compared to the current stock.

    Setting the financial and planning course
    The city council is endeavouring to renew the building rights for these projects for a further 62 years ahead of schedule, thereby underlining the city’s long-term commitment to promoting affordable housing. The decision to grant the building rights lies with the municipal council. In preparation for the start of construction in September 2023 and the planned occupation of the housing estate in winter 2025/2026, one-off expenditure of CHF 1.355 million has already been approved for the renovation of the building site. This financial commitment is a significant contribution to strengthening the urban infrastructure and ensuring the quality of living for broad sections of the population.

  • Zug sets standards in global blockchain research

    Zug sets standards in global blockchain research

    With the support of the Canton of Zug, an interdisciplinary research centre is being established that will focus on the diverse applications and effects of blockchain technology. The initiative, which is being realised in cooperation with the University of Lucerne and Lucerne University of Applied Sciences and Arts, will not only research the technological aspects of blockchain, but also the social, economic and political aspects. Finance Director Heinz Tännler emphasises that the project not only promotes scientific research, but also strengthens Zug as a business location, particularly in light of the new OECD minimum taxation that was introduced at the beginning of 2024.

    Globally unique research initiative
    The newly founded Zug Institute for Blockchain Research at the University of Lucerne will focus on the challenges and opportunities of this disruptive technology. Nine new chairs will be created to address the various facets of blockchain technology. The research will pursue a holistic approach that encompasses technological innovations as well as the associated social, economic and political issues. The aim is to develop an in-depth understanding of blockchain technology and its potential impact on society.

    Strengthening research capacities at the Lucerne University of Applied Sciencesand Arts
    The Lucerne University of Applied Sciences and Arts will significantly expand its existing activities in blockchain research through the new initiative. The university is contributing its expertise in the fields of computer science, finance and technology to the project and is working closely with the University of Lucerne to create a comprehensive research environment. This cooperation forms the basis for the hub, a platform for collaboration and communication that promotes exchange between the participating researchers and the global blockchain community.

    Sustainable funding and long-term goals
    Following the initial start-up funding from the canton, it is planned that the project will switch to sustainable sources of funding. An external evaluation after three years will assess the effectiveness and progress of the research initiative. These measures will ensure that the “Blockchain Zug – Joint Research Initiative” becomes a permanent fixture in the global research landscape in the long term and establishes Zug as a leading centre for blockchain technology.

  • New Lucerne Theatre: Forward-looking operating concept confirmed

    New Lucerne Theatre: Forward-looking operating concept confirmed

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

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

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

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

  • New investor for sustainable construction start-ups

    New investor for sustainable construction start-ups

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

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

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

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

  • The heart of Switzerland pulsating with diversity and innovation

    The heart of Switzerland pulsating with diversity and innovation

    Zurich’s geographical and demographic structure contributes to its unique character. With its division into 12 districts and 34 neighbourhoods, nestled between the banks of the Limmat and the Uetliberg, Zurich offers a picturesque backdrop for its 428,700 inhabitants and 1.4 million people in the entire agglomeration. A remarkable 32% of the population, which comes from 172 nations, reflects the city’s international presence and openness.

    Zurich’s economic landscape is characterised by diversity and strength. The financial sector, which represents a quarter of local economic output, and the booming creative industries with 39,000 jobs emphasise Zurich’s role as an economic powerhouse. With a high tourism rate, underpinned by 3.4 million annual overnight stays and a major air and rail transport hub, Zurich is also a key centre of attraction for international visitors. In addition, a diverse cultural scene, with world-class museums and a historically valuable old town, enriches urban life. Festivals, art and music events as well as the natural recreational areas on Lake Zurich and the Uetliberg offer residents and visitors a high quality of life.

    Zurich thus not only stands for a successful combination of cultural diversity and economic dynamism, but also for a progressive attitude towards the future. This city shows how modern urbanity can be designed in harmony with historical heritage and natural beauty, and sets itself as a leading example of innovation and quality of life in a global context.

    Foundations for a vibrant city
    Zurich Urban Development is a division of the Department of the President of the City of Zurich and reports directly to the Mayor. It comprises five areas and its remit is to provide the foundations and strategies for socio-spatial urban development. The team deals with a variety of topics and is committed to an integrated and user-orientated understanding of urban development and planning. This includes, for example, preparing studies and expert reports, conducting impulse projects and representing socio-spatial aspects in projects led by third parties. Urban development also takes on coordination and special tasks. An important focus of the work is the involvement of the population. Participatory processes and workshops are organised in order to incorporate citizens’ ideas and concerns into urban development. In this way, the City of Zurich creates broad acceptance for a number of projects and strengthens the sense of togetherness in urban society. In addition, an intensive exchange with other municipal offices and external partners is maintained in order to ensure holistic and sustainable urban development. The aim is to further develop Zurich as a vibrant, diverse and liveable city.

    Strengthening the location for tomorrow
    Economic development promotes dialogue between politics, administration and business and advocates good framework conditions. It supports young entrepreneurs and projects that strengthen the future viability of the location and make it visible both nationally and internationally. The Economic Development Agency attaches great importance to sustainable urban development. It is committed to ensuring that the business community is given greater consideration and involvement in order to achieve the City of Zurich’s sustainability goals. The targeted promotion of education and innovation is an important building block for strengthening the location for tomorrow. The Economic Development Agency is committed to ensuring that educational programmes are closely linked to the needs of the economy in order to secure qualified specialists for the future. It also supports innovation projects and technology transfer in order to drive the regional economy forward and create new jobs. Through this holistic approach, economic development contributes to strengthening the location in the long term and making it fit for the future.

    Key to promoting growth
    Innovation and digitalisation in companies are actively promoted by economic development. Targeted funding programmes and consulting services support companies in using future-oriented technologies and strengthening their competitiveness. The Economic Development Agency is also committed to the creation of qualified jobs and the training of skilled labour. It works closely with educational institutions and companies to ensure that young talent is trained in a customised way and to combat the shortage of skilled workers in the long term.

    Impetus for the future
    An important aspect of business development is the promotion of start-ups and innovative business ideas. By providing targeted support and advice, young entrepreneurs are encouraged to realise their ideas and lead them to commercial success. The Economic Development Agency regularly organises events and networking meetings to promote the exchange between established companies and start-ups and to create synergies. In this way, Zurich can be further strengthened as an innovative and attractive location for start-ups.

  • Services burden BKW’s result

    Services burden BKW’s result

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

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

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

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

  • Meyer Burger Technology Ltd plans capital increase to support US expansion

    Meyer Burger Technology Ltd plans capital increase to support US expansion

    In response to the continued losses in Europe and the attractive opportunities in the US market, Meyer Burger has undertaken a strategic realignment. This realignment includes a capital increase to close a financing gap of CHF 450 million and to achieve a positive cash flow in the medium term. The planned rights issue is intended to help finance the completion of the plants in the USA, which will significantly increase production capacity.

    In addition to the planned rights issue, Meyer Burger has received an export credit guarantee from the German government of up to USD 95 million and is seeking further financing through an Advanced Manufacturing Production Tax Credit of up to USD 300 million. In addition, the company is pursuing the possibility of a loan guaranteed by the US Department of Energy to support the completion of its manufacturing facilities in Colorado Springs and Goodyear.

    These financing measures underscore Meyer Burger’s commitment to expanding its presence in the United States and capitalising on market opportunities there. The investment in the US manufacturing facilities is a key step in strengthening the company’s global competitiveness and securing long-term growth.

    Gunter Erfurt, CEO of Meyer Burger, emphasises the importance of the rights issue and other sources of financing for the expansion plans in the USA. Franz Richter, Chairman of the Board of Directors, emphasises that the implementation of these plans will enable Meyer Burger to leverage its technological leadership position to drive commercial success and generate investor returns.

    Meyer Burger’s strategic actions, including the planned capital increase and diversification of funding sources, are aimed at expanding production capacity in the United States and positioning the company for a profitable future. These developments are of critical importance to property management professionals as they have a direct impact on global supply chains and the availability of photovoltaic technologies.

  • Long-term cost benefits and environmental friendliness of heat pumps

    Long-term cost benefits and environmental friendliness of heat pumps

    The decision to replace or renew a heating system is a long-term investment. Many consumers focus mainly on the initial installation costs, but often neglect to calculate the total costs over the life cycle of the heating system. In a new study, researchers at the Fraunhofer Institute for Solar Energy Systems ISE have analysed the costs of various heating technologies in existing residential buildings over a period of 20 years. They took into account future energy prices and the development of CO2 prices. Their conclusion: heat pumps and district heating are not only more climate-friendly, but also cheaper than gas heating in the long term.

    The study focused on existing residential buildings and took into account the subsidies that came into force on 1 January 2024 as part of the Building Energy Act (GEG) and the funding guideline “Federal funding for efficient individual building measures”. The researchers assessed the costs of replacing heating systems and analysed the emissions of various technologies.

    “When investing in a new heating system, all expected costs, in particular the energy costs including the CO2 price component, should be taken into account over the entire life cycle,” explains Robert Meyer from Fraunhofer ISE. According to the study, switching to heat pumps or district heating also results in a positive cost balance for old buildings.

    The study showed that heat pumps in single-family homes are not only more environmentally friendly, but also more economically advantageous. The use of photovoltaics for self-consumption can further reduce overall costs. Even in apartment blocks, switching to heat pumps or district heating is more cost-effective than a new gas heating system.

    The study included various heating technologies such as gas condensing boilers, air source heat pumps (with and without photovoltaic systems), geothermal heat pumps, pellet heating systems and district heating. The researchers recommend providing consumers with transparent information on expected emissions and energy prices, including CO2 prices, to facilitate decision-making.

  • Stefan Walter new Director of FINMA

    Stefan Walter new Director of FINMA

    Following his election by FINMA’s Board of Directors, Stefan Walter’s appointment as Director of the authority has now been approved by the Federal Council. Mr Walter’s impressive career includes significant experience in financial market regulation, including leading the development of supervision for global systemically important banks at the European Central Bank. In his previous role as Secretary General of the Basel Committee, he played a key role in coordinating global regulatory reform negotiations following the global financial crisis.

    A German national with a Master’s degree in International Banking and Finance from Columbia University, Stefan Walter, 59, brings a deep understanding and extensive knowledge of financial market supervision. He succeeds Urban Angehrn, who stepped down in September 2023 for health reasons. Birgit Rutishauser will continue in the role of FINMA Director on an interim basis until Walter takes office on 1 April.

    Walter’s appointment is seen as an important step for FINMA to strengthen its position as the leading regulator in the financial sector. His extensive experience will help to further develop Swiss financial market regulation and establish it at an international level.

  • Avobis sees positive trend in residential yield property for 2024

    Avobis sees positive trend in residential yield property for 2024

    In its Outlook 2024, real estate service provider Avobisanticipatesa favourable trend for residential yield properties. The forecast for 2024 is consistently positive, according to a press release. According to the forecast, the attractiveness of residential investment property is likely to increase again in anticipation of lower interest rates and due to positive fundamental factors, and buyers are likely to show greater interest. This is expected to lead to a revitalisation of liquidity on the transaction market.

    Despite a revitalised market dynamic, general price increases are not foreseeable in the near future. Institutional investors, who have supported the buyer side in recent years, could increasingly act as sellers. This is also due to the increased sustainability requirements. According to Avobis, environmentally conscious reorganisation of portfolios is leading to properties being sold and more sustainable properties being acquired instead.

    This could also be accompanied by a certain degree of volatility. Such market conditions would create opportunities that could be of interest to attentive investors. In the current market environment, residential property reportedly offers a wide range of attractive investment opportunities, from simple buy-to-rent models to construction and promotion through to the realisation of profitable usage concepts.