Article published in the special feature « Finance & Investments », Tribune de Genève and 24 heures, 17 March 2026
Real estate remains one of Switzerland’s most sought-after investments. Against a backdrop of shifting interest rates and heightened geopolitical uncertainty, Martin Spreng, Investor Relations Manager at Dominicé and Member of the Investment Committee – Real Estate Funds, shares his perspective on the market.
In a context marked by geopolitical tensions and economic uncertainties, does real estate still hold its status as a safe-haven asset for investors?
Absolutely, and I would even say that the current context reinforces this appeal. Geopolitical risk is precisely one of the reasons pushing investors toward property right now. This is true for real estate in general, but it is Swiss residential real estate in particular that benefits from a dual protective effect during periods of tension. On one hand, the Swiss franc has historically tended to appreciate when markets are under pressure, which mechanically strengthens the value of franc-denominated assets for an international investor. On the other hand, while listed real estate funds can initially correct alongside equity markets, the underlying real estate demonstrates genuine resilience and provides natural protection against inflation. This dual shield, currency and real asset, is difficult to replicate with other asset classes.
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Following the period of interest rate hikes, how do you assess the outlook for the real estate market today, both in Switzerland and internationally?
I align with the analyst consensus, which is broadly optimistic. In Switzerland, the conditions are in place for a continuation of positive momentum: the SNB’s policy rate stands at 0% and structural fundamentals remain solid. The Swiss population has grown by nearly 43% over forty-five years, sustaining persistent supply pressure, particularly in major economic hubs. This tension is reflected in the figures: since 1982, rents have risen approximately twice as fast as general inflation.
Internationally, selection is key. We favour a regional polarisation approach: targeting dynamic areas with strong fundamentals while avoiding the trap of high yields in regions with more modest prospects.
That said, one must remain attentive to inflationary factors linked to geopolitical tensions, notably through the recent rise in energy prices. This type of shock could temporarily delay a return to more accommodative monetary conditions. It would represent a passing headwind, however, not a reversal of the structural trend.
What place should real estate, direct or indirect, occupy in a diversified long-term investment portfolio?
Real estate has always held an essential place in any diversified long-term portfolio, but we are witnessing today a genuine democratisation of indirect real estate, both listed and unlisted funds.
In a low real interest rate environment, indirect real estate allows investors to generate solid returns while offering natural protection against inflation, and represents a strong substitute for bonds for a long-term investor.
In the transaction market, we are observing a structural trend: an increasing number of private property owners are converting their assets into fund units through contributions in kind, known as a swap. The reasons are structural: growing tax pressures, the costly energy transition, and succession planning. The swap emerges as a natural solution: converting a property into fund units allows owners to maintain real estate exposure while delegating management to professional teams, with the added benefits of economies of scale and liquidity that direct ownership does not provide.
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Real estate funds are attracting a growing number of investors. What are, in your view, the main advantages of this type of vehicle in the current environment?
Real estate funds offer today a set of concrete advantages that we observe directly in our own activity.
The traditional 60/40 portfolio no longer delivers the same diversification. Integrating real estate investment into a portfolio provides additional diversification and attractive returns.
From a financial and wealth planning perspective, holding fund units presents significant advantages over direct property ownership: tax optimisation, regular income distributions in the form of dividends, liquidity through stock exchange listing, and considerably simplified estate planning, as divisible units are far easier to distribute among heirs than a property held in undivided ownership.
Operationally, management by expert teams reduces the risks associated with direct ownership and allows the growing constraints of the energy transition to be handled in a structured manner, whereas many private owners can no longer manage these alone.
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Finally, what do you see as the determining factors for the real estate market in the coming years: interest rate movements, demographic dynamics, the energy transition, or shifts in usage?
We identify four. First, interest rates: a prolonged conflict in the Middle East could sustain inflationary pressure and delay the trend toward lower rates, without reversing it. Second, demographic dynamics: Switzerland continues to attract a qualified and financially solvent population to its major economic centres, against a structurally constrained supply that will not ease. Third, the energy transition, which will weigh increasingly on private owners and accelerate the shift toward professionally managed indirect real estate. Finally, the densification of urban clusters: Zurich, Basel, and the Lake Geneva arc will continue to concentrate talent, capital, and businesses, further amplifying the polarisation between these hubs and the rest of the territory, and with it, the pressure on prices and rents in these areas.
Our conviction is clear: real estate will remain a leading asset class, but over the long term, it will be investors who rely on professional teams through indirect real estate that will be rewarded.