The UBS-AM Real Estate & Private Markets’ latest real estate outlook paper, entitled ‘Real Estate Outlook – Switzerland, Edition 2H20: Business as (un)usual’ outlines how, so far, the post-COVID-19 new normality appears to be nothing but business as usual in the Swiss real estate market. The continuing very low interest rate environment keeps driving investors towards rental property acquisitions, fuelling transaction activity leading to further cap rate compression. Multifamily investments have become particularly favoured due to their resilient nature in these very uncertain times. Overall, the Swiss real estate investment market is expected to remain robust in the coming quarters thanks to high exposure to the defensive multifamily sector and a persisting low interest rate environment. The evolution of the retail property market is likely to diverge from this general positive trend as value repricing is expected to occur in this sector.
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