Finally we can hope again, to return to a more normal life. From June, employees should increasingly return to work. Nevertheless, the resumption of the pre-crisis rhythm takes time and consequential damage must be expected, according to the psychologists. The current situation remains tense, but also exciting. New developments affect real estate investments. Rising raw material prices and delays in supply chains are disrupting the usual cycle. Potential problems in particular for portfolios and properties with still large investment needs? If the inflation does not remain temporary and persists, the current capex calculations for real estate investments and institutional portfolios may not be sufficient. Although inflation per se, if under control (various central banks are already thinking about rate hikes in the summer), does not cause panic, it primarily causes additional costs. This is already reflected in the rising costs for renovations and refurbishments. On the income side, it is also becoming more difficult to achieve higher rents in the short term since construction activity for investment properties is still in full swing, thus ensuring a sustained rise in vacancies. Developments in unemployment rate and migration remain the most important factors for investors. As a result of the failed framework agreement, nervousness and uncertainty are also increasing on the political front. Private consumption in Switzerland is experiencing a renaissance and after the slump caused by the crisis, a need to catch up is clearly noticeable. Corresponding developments influence the investor sentiment and lead to new considerations. While the risks continue to increase with some listed real estate investments, others retain the chance of positive impulses and further increasing and solid results. The cash positions are still high and investors are cautiously expanding their real estate positions.

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