The lack of impetus in the real estate investment sector and from the central banks, at times of large vacation absences for investors, accentuated as usual in August, which led to persistently low trading volumes in real estate investments on the Swiss stock exchange. In the course of the month, however, various half-year results for real estate stocks and funds were published. The appreciation gains in commercial properties are going on happily. The ongoing topic of Covid is moving more and more into the background, at least in terms of communication and the current vacancies. The confidence that the situation in connection with the global health crisis will be eased further also appears to be spreading in the hotel sector, which is reflected, for example, in the Accor Group’s expansion plans in Switzerland. This is supported by the consistently more positive economic forecasts of the analysts but also by the companies. In general, the portfolios still show no major increase in vacancies. This means that mixed portfolios that invest in both residential and commercial properties are well equipped and, unlike many real estate funds, still offer price potential. The stability of the operating results gives investors an optimistic feeling that in the event of a possible trend change, real estate investments will react more stable and less volatile than the global stock markets. In principle a correct observation; however, following the enormous inflows of funds into real estate investments in recent years, there could also be violent short-term movements, as already happened in March 2020. Investors should therefore not forget that listed investments do not always only react to fundamental operational results, but are also shaped by short-term developments. The summer, which from a meteorological point of view was short-lived, at least in Switzerland, is slowly coming to an end. The next season of capital increases has begun. Listed and unlisted products and investment foundations are looking for fresh money again to expand the property portfolio or reduce debt. The acquisition pipelines are full, but prices are overheating – the corresponding return expectations therefore remain manageable in the medium term.

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