Summary
- Swiss real estate investments are looking back on an exceptional 2025 – the SWIIT rose by over 10%, and the SREAL by more than 23%. Around CHF 9 billion flowed into real estate funds, setting a new record.
- Significant revaluations are back. As of 30 September, investment products had generated clearly positive returns. Operating income remains solid, whilst individual products are benefiting from significant capital gains.
Following a record year for Swiss real estate investments in 2025, 2026 begins in an environment characterised by stability, but also by new uncertainties. The SNB’s key interest rate has remained at 0% since June 2025, and the December monetary policy assessment confirmed this stance. Inflation in Switzerland is hovering close to zero – in December it stood at just 0.1%. Internationally, as is well known, the economic conditions remain challenging. Consequently, Swiss real estate investments are benefiting from the interest rate environment and their status as a safe haven.
With the SWIIT agio at 36% (13 February 2026), the level is now only slightly below the peak reached in 2021. At the same time, the favourable market conditions are being capitalised on. Various new funds are being launched, and the MobiFonds is set to be the first IPO of 2026. The first annual reports from listed property companies as at the end of 2025 are also positive.
Discount rates: Values are falling moderately
The analysis of recent transactions shows that the median change in average (real) discount rates continues to trend slightly downwards. Following slight increases in certain quarters of 2023 and 2024, the figures are falling slightly once again.
It is possible that this rather slow movement is a sign that discount rates have already reached an appropriate level following the moderate adjustments of recent years. Whether the slight downward trend will intensify in the coming quarters will depend largely on how the SNB sets its key interest rates.
Returns on investments: Broad recovery with frontrunners
The investment returns from the most recent financial statements confirm the positive trend that had already become apparent in previous quarters. On average, the funds and investment groups with financial statements as at Q3 2025 achieved an investment return of 5.19%, ranging from 3.88% to 8.79%.
On average, 3.2% of net income was generated from operations and 2% from capital gains. The strong performance of products with a high proportion of residential properties is particularly striking, as these continue to benefit from rising market values (residential properties overall as at 30 September: +3%; commercial properties: +0.9%).
Methodology used to present the return on investment
The chart shows the investment return of all property funds and investment foundations focusing on Swiss real estate that close their financial year on a defined accounting date (30 September; including products closing on 31 October) and whose data had been published and was available at the time the analysis was prepared.
The investment return is broken down into a component derived from net income and a component derived from capital gains. The respective proportions are calculated per unit based on the change at year-end. In the case of capital increases, income from the sale of units, and allocations/withdrawals of depreciation that affect net assets, a residual value may arise, which we report separately.
The chart provides a snapshot of the current market environment and does not constitute an investment recommendation.
Outlook: Positive, but selective
The fundamentals for Swiss property investments remain sound. At the same time, valuations are ambitious. Residential funds are trading on average at agios of over 40%, with some individual products even exceeding 50%. However, given the current yield on 10-year Swiss government bonds of around 0.31% and a weighted distribution yield for the SWIIT of approximately 2.27%, the spread remains attractive. The period of broad-based upward momentum could give way to a phase of differentiation – with a focus on quality and operational strength.
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