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The global economy faces uncertainty from geopolitical risks and inflation, prompting central banks to ease policies while investors seek real assets for stability. Switzerland’s economy remains stable, but external risks could impact growth.

Switzerland's housing market faces rising demand and limited supply, pushing rental prices up despite a possible mortgage rate cut. Prime commercial spaces thrive, while suburban offices struggle with vacancies due to hybrid work trends.

Swiss indirect real estate investments experienced a strong momentum in 2024, with record fundraisings and market indices reaching all-time highs, driven by SNB rate cuts and investor confidence. Looking ahead to 2025, capital increases, a sector consolidation, and demand for prime residential and logistics assets are expected to shape market dynamics.

Global real estate markets present strategic opportunities for investors, with the U.S. poised for recovery in logistics, residential, and data centres, while Europe offers selective prospects amid economic challenges and rate cuts. SFP’s diversified investment approach provides exposure to high-quality global assets, allowing Swiss investors to capitalise on favourable interest rate trends and untapped international opportunities.

ESG investing continues to evolve with clearer regulatory frameworks, improved data transparency, and structured sustainable investment strategies, such as exclusions, ESG integration, and climate alignment. In 2025, key priorities include widespread adoption of REIDA metrics, enhanced data quality, and standardised methodologies for carbon reduction and energy measurement, reinforcing the long-term commitment to sustainability in investment practices.

No fewer than three contract extensions of 15 years each were realised in the portfolio of SF Urban Properties Ltd, more precisely in the property at Zeltweg 67 in Zurich.

The SF Commercial Properties Fund has realised a number of sustainability projects. In St. Gallen, the facade, windows and roof were partially renovated, and the oil heating in Lyss and St. Gallen was replaced by district heating. In addition, a photovoltaic system was put into operation in St. Gallen, while the use of roof space for another system is being examined in Langenthal.

The SF Retail Properties Fund is expanding its portfolio and has acquired two retail properties in Oftringen AG at Nordstrasse 16/18. The attractive tenant structure with Lidl, Fressnapf, KFC, PureGym and Polo Motorrad is an ideal fit for the portfolio strategy. The two buildings are located directly next to the A1 motorway exit in the attractive retail cluster of Oftringen AG. The complex has 44 outdoor parking spaces and 101 car parking spaces, making it easily accessible for customers.

Maintaining the existing tenant base provides the basis for high tenant satisfaction and sustainable property management. A partnership-based relationship enables problems and new needs to be recognised at an early stage and constructive solutions to be found. In the commercial real estate segment, this aspect is particularly important and optimises the results for all parties involved.

8 November 2024 was a day of high volatility in the Swiss indirect real estate market, triggered by UBS's strategic announcement the day before. Following the acquisition of Credit Suisse Funds AG in April 2024, UBS Fund Management (Switzerland) AG, which now manages 14 Swiss real estate funds, presented its plan to merge certain funds for the period from 2025 to 2027.

The SF Sustainable Property Fund invests in real estate assets and projects throughout Switzerland. The main focus of the real estate fund is on residential use. The fund systematically and gradually optimises properties regarding defined sustainability criteria (ESG) during the holding period.

The SF Commercial Properties Fund further improved the quality of its portfolio by extending leases for a total of 4,000 square meters in the first half of 2024, thus minimising the vacancy risk. The SF Commercial Properties Fund has an attractive portfolio thanks to stable and index-linked letting.