Dear Real-Estate Friends,

Commercial properties in triple-A locations in Swiss cities are currently being sold at irrational prices. With gross yields of between 2.5 to 3%, there is no financial incentive for a purchase; buyers are investing for purely emotional reasons or simply to protect capital. Office rents are tumbling, while rents for retail space are literally nosediving. Interest rates can hardly sink any lower. Projected returns and investment criteria for these trophy properties can no longer be sustained.

Yet the market continues to play by its own rules.

Best regards,
Claude Ginesta

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