Swiss Real Estate Investments Attract Long-Term Investors
Real estate investments in Switzerland continue to attract investors, offering a blend of yield and risk. The average distribution yield stands at 2.4%.
Exchange Traded Funds (ETFs) tracking real estate indices provide an alternative route for investors. These funds have shown strong long-term performance, with Swiss-listed companies like Swiss Prime Site, PSP Swiss Property, and Plazza leading the way. Other notable players include SF Urban Properties, Swiss REIT, and ZugEm.
Real estate prices are expected to rise further, with single-family homes already up by 40% and apartments in sought-after locations increasing by 30% over the past decade. Low interest rates and sustained population growth are the primary drivers behind this trend. Despite these increases, the current premium of 30% for Swiss real estate funds is deemed acceptable, with an average premium of 20%.
For long-term wealth management, real estate funds are a suitable choice due to their stable distributions. The 'Sustainable Real Estate Switzerland' fund, for instance, has been upgraded to 'overweight' due to its favorable valuation discount.
Swiss real estate funds offer a healthy mix of yield and risk, with an average distribution yield of 2.4%. Despite recent price increases, they remain attractive for long-term investors, with strong-performing companies and funds available on the Swiss exchange.
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