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Switzerland
The Swiss real estate market is relatively sizable
and sits within the top ten in Europe, alongside
Russia and Sweden. Most activity is centred
on the cities of Geneva and Zurich. Institutions
(insurance companies and pension funds) and
unlisted funds tend to predominate in terms of
holdings and investment activity.
The Swiss real estate market has long been
dominated by domestic investors. However, for
several years now, more international investors are
being attracted to the commercial real estate market,
evidenced by increasing activity in recent years.
Swiss law limits foreign acquisitions of residential
properties in order to protect the residential market
from speculation.
Switzerland presents five major submarkets for
real estate investments, namely Zurich, Geneva,
Basel, Lausanne and Bern, as well as their respective
suburbs.
The safe returns offered by the Swiss market are
especially attractive to core investors, but leveraged
investors also find it valuable for diversification
and hedging reasons. Indeed, total returns of direct
investments are characterised by a low standard
deviation, representing a low risk and therefore
comparably low yields.
Market sizing
Switzerland
Europe
Invested stock
(Total stock)
EUR 165bn
(EUR 180bn)
EUR 3,335bn
(EUR 8,201bn)
Liquidity ratio
(10y average)
0.2%
(0.2%)
5.6%
(4.6%)
2014 volumes
(10y average)
EUR 0.4bn
(EUR 0.5bn)
EUR 187bn
(EUR 142bn)
Market pricing – Geneva (Q4 2014)
Office
Retail
Industrial
Current Yield
3.50% 3.50%
6.00%
Min/Max (10y)
3.50-5.50% 3.50-4.20% 5.75-6.50%
Yield definition
Net initial yield
Source: DTZ Research
Investment activity by source of capital, 2014
Investment activity by asset type, 2014
Source: DTZ Research
Source: DTZ Research
Domestic
Non-European
European
Office
Mixed Use
Retail
Industrial
Other
61%
39%
30%
10%
46%
13%
1%
112 Investors Guide to Europe 2015