Property market remains attractive
The Swiss property market remains attractive for investors this year. This is the finding of a corresponding survey by EY. According to the survey, the importance of ESG criteria in the selection of investment properties is increasing.
The Swiss property market remains attractive for 98 per cent of property investors, EY Switzerland reports in a press release. The auditing and consulting firm based its findings on the latest edition of its annual “Real Estate Investment Market Trend Barometer”. For this, EY Switzerland surveyed a representative cross-section of 96 companies.
“According to investors, the high level of attractiveness can be attributed to the stable economy, persistently high demand and the fact that Switzerland remains a lucrative location despite the geopolitical changes,” Daniel Zaugg, Sector Leader Real Estate at EY in Switzerland, is quoted as saying in the press release. “According to the respondents, the Swiss National Bank’s interest rate hikes will also have no substantial short-term impact on the market value of investment properties.” 96 per cent of those surveyed expect inflation to remain below 3 per cent this year.
Within the property market, residential property is becoming more attractive. Interest here has risen from 93 per cent in the two previous years to 96 per cent this year. Fewer investors want to invest in office, logistics and healthcare properties than in the previous year, at 39, 42 and 45 per cent respectively. Only 16 per cent of respondents expressed interest in space for food retailers and specialist stores.
Sustainability criteria are playing an increasingly important role for a large majority of respondents when selecting investment properties. Investors also predict that demographic changes and climate change will have an increasing influence on the property market in the future.