Market Commentary December 2024

The Swiss real estate market ends the year with an euphoric performance. Recall that in early January, 25% of funds were still trading at a discount, and the average dividend yield was 3%. The Swiss National Bank (SNB) played a significant role in this exceptional development, particularly through its swift adjustments to monetary policy. Global uncertainties—such as geopolitical tensions and armed conflicts, political upheavals like Donald Trump's election or the rise of extremist parties in Europe that threaten EU cohesion, persistent economic challenges with rising global debt, and climatic and ecological issues—continue to drive investors toward safe-haven assets. Among these, gold, the Swiss franc, and particularly the Swiss real estate market have been top choices. A decade ago, the SNB introduced negative interest rates. Yet, as with any ten-year period, numerous events have influenced investors and market prices. Unlike all global real estate indices, Swiss indices ended the year at record highs, last seen in 2021. While forecasts for positive performance in real estate investments in 2025 are promising, caution remains advised. Trust in management is essential: which management teams will distinguish themselves in 2025? To explore these topics further, don't miss the IMMO25 real estate fair on January 15 and 16 in Zurich (swisspropertyfair.ch). The theme of the event is: 'Growth Through Creativity.' The start of 2025 will also mark the complete disappearance of the Credit Suisse name from all Swiss real estate funds. Regarding Novavest, an extraordinary general meeting is scheduled for Friday, January 17. Ethos has issued a voting recommendation to its clients, supporting the proposal to revise the organization's structure and enhance the governance of the "Novavest constellation." 

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