Diversification with Opportunity

European Real Estate

European real estate offers investors the opportunity to diversify their existing portfolio while participating in long-term trends. Swiss private investors, for example, usually focus on the domestic real estate market. However, institutional investors have recognized the opportunities and advantages of European real estate in recent years and have started to introduce foreign investments into their existing portfolios. There are also good reasons for Swiss private investors to invest in European real estate. On one hand, the European real estate market opens up access to a large investment universe with many opportunities to participate in long-term trends. On the other hand, European real estate is ideal for diversifying an existing real estate portfolio. In addition, European core real estate is a defensive investment offering long-term stable returns.

The European real estate market offers access to an investment universe that is around 10 times larger than in Switzerland, and the opportunity to participate in various megatrends. Due to its low correlation to Switzerland, the European real estate market is ideally suited for diversification as a complement to Swiss real estate. European core real estate has defensive characteristics such as forecasted real rental growth in the coming years, stable returns, inflation protection and a low correlation to other asset classes.

Real estate investments that focus on megatrends exhibit a high level of stability that endures market cycles and uncertain times. The COVID-19 pandemic and the war in Ukraine have highlighted the need to strengthen security of supply. Real estate offers a good opportunity to benefit from these developments, as this is where these megatrends take place. In order to benefit from these developments in the most targeted way possible, implementing an investment strategy in a large, cohesive economic area such as Europe, can offer a wealth of investment opportunities. In addition, a multi-sector strategy is ideal in order to be able to participate in several megatrends at the same time.

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