Is Germany the new Safe Haven?
Hans R. Holdener
Investor | Founder | Real Estate Leader | Builder of Helvetica | Swiss-Norwegian Entrepreneur | Curious About Proptech, AI, Bitcoin, and Blockchain
In Patrizia`s most recent great study off the Top 10 Real Estate Cities in Europe, the presence of a Swiss city seems to be missing.
How come?
- The Swiss Real Estate Market is in our view a unique safe haven producing very attractive risk adjusted returns and stable value offering a well proven downside protection
- Switzerland has a stable and solid economy which results in low volatility and stable returns
- Switzerland is a Low risk country with a stable and solid economy securing stable growth (Triple AAA agency ratings S&P, Moody`s)
- The Swiss GDP per capita reached record high USD 78,245 in 2016 the second highest in the world only beaten by Luxembourg
- Switzerland has been judged as the most competitive economy 2016/2017 on the planet for the eighth year in a row by World Economic Forum
- The Swiss Real Estate market offers high yield spread producing attractive dividends due to the very low Interest rates environment and probably the lowest Financing margins in the world
- Strong immigration rates and unemployment rates amongst the lowest in the world
- Low Real Estate vacancy rates in comparison to Europe gives downside protection, low volatility and stable returns
- Lowest government real estate transactions costs in Europe (e.g. Cantons Zug and Zurich < 0.2%)
I tend to agree that Germany deserves to be amongst the safest countries in the world for Real Estate Investments, however, Switzerland does to.
Might the results of the conclusion have been impacted by Patrizia`s unfortunate lack of presence in the Swiss Market?
In that case, give us a call. We have a long and proven track record within the Swiss Real Estate Market.
Helvetica Property Investors protect investors’ capital through long term vision, sound strategy and excellent execution capabilities. Our capital protection culture and commitment are paramount to the firm. Invited investors will benefit from this comprehensive experience that will ensure the quality of the investment opportunities and maximize return to investor.
Hans R. Holdener