Despite some challenges, the Swiss real estate market remains an exceptionally interesting terrain for real asset-backed bonds. This form of capital investment, relying on physical assets, is becoming increasingly vital in today’s economic climate. This blog explores the latest developments and opportunities for investors in this environment.
The outlook for real estate in Switzerland, especially within the commercial sphere, is favorable. Despite the fact that recent years have seen rising interest rates and increasing construction costs, demand remains robust and is expected to continue to grow. Swiss real estate is rightly considered ‘tangible, unique, sustainable & remarkable’ throughout the investment period.
These characteristics make them a compelling option for investors seeking financial returns as well as stability and sustainability. Real estate investments not only enhance portfolio diversification but also provide a stable income source and minimize value volatility over time.
Real Asset Bonds: Security and Stability through Mortgage Collaterals
Real Asset Bonds are becoming a favored investment option, outshining traditional investments like covered bonds and funds by directly linking the investment to the property’s physical value.
Unlike covered bonds, which are widely diversified across various property collateralizations by mortgage banks, Real Asset Bonds secure specific, directly assigned plots and properties. This direct linkage gives Real Asset Bonds unparalleled security.
In contrast, funds often rely on wide diversification, whereas Real Asset Investments offer precise selection and control over properties, enabling investors to take advantage of market opportunities and tailor their investment strategies. Additionally, the annual interest payments of Real Asset Bonds are secured by rental income from creditworthy tenants with long-term contracts, further differentiating them from funds, whose returns often depend on the performance of a broad portfolio.
Real Asset Investments stand out as a stable and promising investment option within the Swiss commercial real estate market. The combination of security, stability, and potential appreciation presents a prudent alternative to conventional investment forms. Real Asset Bonds, in particular, backed by direct real estate values and solid rental income, offer an attractive opportunity for those looking to invest in Switzerland’s safe haven with a long-term view and diversified risks.
