Nine Years of Capital Growth in Swiss Market

Investors with property in Switzerland have enjoyed nine years of consecutive capital appreciation, the latest IPD Switzerland Annual Property Index has revealed. Continuing its impressive performance in 2010, investors saw values rise....

Investors with property in Switzerland have enjoyed nine years of consecutive capital appreciation, the latest IPD Switzerland Annual Property Index has revealed.

Continuing its impressive performance in 2010, investors saw values rise 1.4 per cent last year, the index revealed. The market, which was Europe's most resilient during the financial crisis, delivered an annual return of 6.1 per cent last year.

This was 60 basis points ahead of 2009's 5.5 per cent and matched the return of 2008.

According to the index, the best and worst performing parts of the market were separated by 180 basis points, with the retail sector topping the table. Annual returns within the asset class stood at 6.8 per cent, while the industrial sector returned five per cent.

Overall, the commercial sectors performed better than the market with residential posting a below-average performance.

The Swiss property market can be characterised by its low volatility, the report noted. This is primarily determined by the large weight of the residential sector in the index coupled with limited asset supply and a dominant stock ownership.

- Friday 15 April 2011

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