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The global real estate asset class has entered a promising new cycle, catalysed by a combination of valuation resets, constrained construction pipelines, healthy demand, and increasingly accommodative monetary conditions.

The trade conflict initiated by the US and unpredictable tariff announcements are creating considerable uncertainty. This is further exacerbated by countermeasures taken by the countries affected.

The Outlook for Switzerland's real estate investments remains promising. The recent interest rate cut by the SNB has a supportive effect and strengthens positive expectations.

Infrastructure secondaries have emerged as a resilient and strategic investment avenue, offering investors immediate exposure to de-risked, cash-generating assets while providing enhanced portfolio flexibility, attractive pricing opportunities, and a favourable risk-return profile in an increasingly dynamic market environment.

Compared to the global or US equity markets (MSCI World Index- 1.4%, S&P 500 -5.1% as at the end of April), Switzerland's property stocks were able to confirm their "safe haven" status.

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.

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.