Investors' capital allocation into office and residential markets in ...

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performance of 3.4 per cent, Swiss Real Estate Index decreased by more than 10.9 per cent. Together with real estate other assets performed poorly, such as The Swiss Bond Index (SBI) was recorded at the end of 2007 with the return of -1.1 per cent, Swiss equities performed at -0.1 per cent (Credit Suisse Real Estate Market report 2008, see Table 8.2). Table 8.2 Performance of Swiss real estate investment vehicles 2007 (Source: Credit Suisse Economic Research, Datastream) There are 17 Swiss Real Estate investment funds, among them there are four main large funds such as Credit Suisse Real Estate Fund Interswiss, Credit Suisse Real Estate Fund Siat, UBS (CH) Property Fund Anfos and UBS (CH) Property Fund Sima. Credit Suisse Real Estate Funds performed better compared to UBS Real Estate Funds, achieving the overall returns of - 0.2 per cent and 2.4 per cent. At the same time UBS Real Estate Funds achieved the overall returns of - 6.1 per cent and - 10.1 per cent in H2 2007 (Credit Suisse Economic Research 2008, see below Table 8.2). Table 8.2 Performance of the four largest Swiss investment property funds 2007 (Source: Credit Suisse Economic Research, Datastream) 32
The fall in the prices of Swiss Real Estate Funds was caused by several factors such as credit crunch, the lack of demand of real estate funds and increase in supply of real estate funds as three new property funds were established in H2 2007, such as Procimmo, Patrimonuim Swiss Real Estate Funds and Credit Suisse Real Estate Fund LivingPlus. Not only real estate funds but real estate investment companies performed poorly in 2007, making investors disappointed in their expectations. While office market is quite volatile as an investment, the residential market is considered to be more resistant to economic cycles. Currently, Swiss housing market is influenced severely due to the treaty between Switzerland and European Union on the free movement of people. The rents increased above average in the urban areas of Zurich, Basel, Geneva and Lausanne. At the same time there is a lack of apartments with low rents and a growing number of households were spending more than a quarter of their incomes on rents. More incentives for housing construction were suggested by the minister, Leuthard, including more land to be made available and less complicated regulations. “However, Leuthard said housing policy should not solely be an issue of quantity. It should also include the integration of different population groups, demographics and the use of alternative energy means”(Swiss info). 33
Page 1 and 2: KTH Arkitektur och samhällsbyggnad
Page 3 and 4: The treaty between Switzerland and
Page 5 and 6: Table of Contents CHAPTER 1 .......
Page 7 and 8: 1.2 Aims and objectives The aim of
Page 9 and 10: Chapter 2 Methodology In the paper
Page 11 and 12: expectations rise, making the price
Page 13 and 14: single assets or in a multi/mixed a
Page 15 and 16: In 2007 the transaction volume in t
Page 17 and 18: concluded that the continuation of
Page 19 and 20: Chapter 5 An overview on the proper
Page 21 and 22: Table 5.1.2 Development in Gothenbu
Page 23 and 24: (Global Property Guide, August 2008
Page 25 and 26: in the heart of Geneva CBD area is
Page 27 and 28: However, there has been an increase
Page 29 and 30: for the foreign investors in proper
Page 31: Chapter 8 Investments in office and
Page 35 and 36: Total return from the investments i
Page 37 and 38: Credit Suisse The company provides
Page 39 and 40: Fixed income trading revenues were
Page 41 and 42: (Source: FOLKSAM Life Administratio
Page 43 and 44: Foncipars fund invests in residenti
Page 45 and 46: - Separate Accounts: France, Italy,
Page 47 and 48: Chapter 10 Conclusions Real estate
Page 49 and 50: References AMF Pension (2008) http:
Page 51 and 52: Swiss info http://www.swissinfo.org
Page 53 and 54: Real estate in relation to other in
Page 55: Blackstone, office property “Euro

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