In Brief

  • Swiss GDP grew 1.0% in 2017, with an estimate for 2018 currently at +2.0%. Inflation is projected to stay positive in 2018 (+0.6%).
  • First signs of rise perceived on interest rates: mid-February, the 10-year Swiss Bond reached its highest level since June 2015 (0.14%).
  • Increasing pressure on office assets as the stock of available spaces is growing in key cities (e.g. 186’000 sqm in Geneva ; 416’000 sqm in Zurich).
  • Downward trends on both multifamily assets and private units, with pricing reduced by -1.5% and -0.9% in 2017, respectively.
  • Uncertain year-start for indirect real estate with a slight drop on SXI Real Estate Fund index (-1.9% YTD) and modest growth for the Share index (+1.8% YTD).

Macroeconomic situation

Swiss economy

Swiss interest rates have been oriented upwards over the quarter. After having reached its highest level since June-2015 (0.14% on Feb. 13th) the 10-year Swiss bond stands close to zero (-0.03%) and the 50-year bond is now at 0.60%.

Main Government Bonds Curve 6M to 50 years

Direct real estate


The stock of available office spaces is growing in both Geneva and Zurich office markets. First signs of rent decrease are noticed, with the average rents for new spaces recorded at CHF 450 per sqm in Geneva and CHF 320 per sqm in Zurich.

Vacancy rate (%) - Office

Direct real estate


Prices for both multifamily assets and private units have decreased in 2017, respectively -1.5% and -0.9%. Individual housing seems to be the only class for which residential prices are still on the rise (+2.5% in 2017).

Residential Price Evolution

Swiss RE Environment Report

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