Sustainability drives real estate prices

Zürich, January 2022

Switzerland is still considered an attractive location for real estate investors in 2022. Sustainability and intelligent infrastructure play a major role in purchasing decisions. Price premiums are also observed for sustainable real estate. This is the result of a study by EY.

The Swiss real estate market will remain attractive for investors in 2022, writes EY Switzerland in a statement on the real estate trend barometer 2022 from the consulting firm. According to the EY surveys, the real estate market is currently being determined by the three factors of sustainability, digitization and the pandemic. The vast majority of investors are also of the opinion that the overall investment volume will remain at the level of the previous year.

Last year, the pandemic increased the focus of investors on residential real estate. "This clear preference is also clearly evident for the year 2022, because the residential segment is still clearly favored over other types of use," says Tizian Scheidegger, Senior Consultant Real Estate Switzerland, in the statement. "Like last year, logistics and healthcare properties are also very popular."

Almost nine out of ten people surveyed for the study believe that sustainability criteria are decisive in the purchasing decisions of institutional investors. Three quarters of investors have observed price premiums for sustainable real estate. At the same time, more than nine out of ten respondents believe that the implementation of sustainability strategies in the real estate sector is still in its infancy. Just as many investors are in favor of creating CO2 balance sheets for buildings or real estate portfolios. 97 percent of investors attach great importance to an intelligent infrastructure with charging stations, connectivity and intelligent energy concepts.

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