Rock-Solid Swiss Real Estate: Expert Outlook and Perspectives From Moonshot Panel Discussion

There are perhaps little to no individuals in the world who would argue against the wisdom of investing in real estate. Countless global politicians, economists, billionaire investors, entrepreneurs, and other great minds regard real estate as “the best investment any individual can make.”

Few locations, however, rival the allure of Swiss real estate, which continues to be highly attractive for the majority of local investors (98%). Their confidence stems from the asset’s role as an effective inflation hedge and its consistent returns, the country’s robust economy, and the healthy supply-demand balance, echoing Samuel Clemens’ famous sentiment, “they’re not making it anymore.”

Yet, in today's rapidly evolving landscape marked by global geopolitical uncertainty and shifting investor sentiments, even Swiss real estate has come under scrutiny. Consequently, Moonshot held a Panel Discussion on Private Real Estate: Insights and Opportunities, bringing together some of the industry's leading experts to explore the current and future state of the Swiss real estate market.

Featured Panelist

Swiss real estate holds significant importance for us at Moonshot and for our esteemed partners at Le Bijou and Amēa. Together, we have conducted numerous case studies to determine the effectiveness of adding real estate to the average Swiss investor's portfolio, with historical data always proving its worth.

As we are all well aware, however, past performance does not guarantee future results. Consequently, we invited one of Switzerland’s leading industry professionals to share invaluable insights into the prospects of the Swiss real estate market.

Severin Renold, our Investor Relations Manager, spoke with Dr. Michael Trübestein, professor at Hochschule Luzern (HSLU) and President of the Royal Institution of Chartered Surveyors (RICS) Switzerland, who brings years of experience and numerous published works in real estate investments and finance, real estate asset management, real estate capital markets, and real estate valuation. The full talk will soon become available at moonshot.ch/talks/.

Megatrends, the Swiss Advantage & More

The discussion focused on the intricacies of the Swiss real estate market and uncovered the influence of megatrends such as sustainability, digitalization, and urbanization; green premium vs. gray discount; and the necessity of managing and adapting aging assets to maintain their viability as investments.

The speakers discussed the Swiss real estate market as one marked by:

Consistent growth, despite occasional stagnation,
A robust economic environment supported by a strong Swiss franc that has moderated construction cost increases in Switzerland compared to Germany and France,
A stable and attractive investment climate amid rapid interest rate hikes, often referred to as an “island of happiness,” with public infrastructure issues or political tensions having less impact as opposed to neighboring regions like the DACH area, the UK, and the US.

Professor Trübestein shared his outlook on the current real estate market and the opportunities available there, emphasizing the importance of location, accessibility, and public services. He argued that there are opportunities in both residential and commercial properties, with alternative residential (e.g., senior housing, affordable housing, schools) and sectors like life sciences and logistics being particularly interesting.

Notes for Investors, Amēa & Le Bijou Discussion

Despite several political and regulatory challenges as well as interest rate risks, Professor Trübestein stated the demand for Swiss real estate remains strong due to limited supply and positive migration trends. According to the professor, the key to success for investors in the current environment lies in building a well-diversified portfolio of various asset classes to mitigate risks and enhance returns, with real estate being a cornerstone.

For those looking for additional diversification in real estate, metropolitan areas rather than countries should be considered, as they offer numerous promising opportunities, Professor Trübestein shared.

The discussion also uncovered two attractive real estate opportunities from the Moonshot investment portfolio – Amēa and Le Bijou. Situated in prime locations, both reportedly align with the megatrends of the sharing economy and digitalization, providing flexibility for users who do not need to own an entire property while leveraging data to enhance user experience (e.g., personalized amenities based on user preferences).

INVEST IN AMĒA VILLAS INVEST IN LE BIJOU

How to Join?

On top of the insightful discussions, attendees enjoyed a selection of meticulously curated appetizers and beverages, perfectly complementing the event's ambiance and setting a refined tone for the evening. Become a part of Moonshot Circle and secure your spot at our next gathering, catering to real estate, private equity, artificial intelligence, and other topics that resonate with both ourselves and our members. Be among the first to register for these upcoming events at moonshot.ch/circle/.