Real Estate Investment Performance: Switzerland Property Index 2021
April 6, 2022
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MSCI and Wüest Partner have published the “Switzerland Annual Property Index” for direct real estate investments. It shows that the total return across all property categories was 6.8 percent in 2021, the return on net cash flow was 3.3 percent and the change in value return 3.4 percent. Compared with 2020, the result represents a decrease of 0.1 percentage points for the net cash flow yield and an increase of 1.2 percentage points for the change in value yield.
Continued high willingness to pay
The increase in the change-in-value yield compared with 2020 (1.2 percentage points) reflects a further rise in willingness to pay for Swiss real estate. The current level is 1.1 percentage points above the 2011-2020 average (2.3 percent).
Strong performance of residential properties
The best performance last year was achieved with residential properties. In this segment, the total return was 7.4 percent. Industrial and logistics properties performed at 7.2 percent, office properties at 6.9 percent and sales properties at 5.0 percent.
