Ghost towns, and a lure for new tenants: The vacancy on the Swiss real estate market is at a record high. For the end of 2019 UBS experts expect an increase to around 80’000 empty residential units.

Behind many of the new buildings to institutional investors such as insurance companies and pension funds are stuck. The low interest rate environment pushes you to the real estate market, where the promise of a higher return (VIEW reported).

“you have a lot of Cash, you would have to create otherwise to negative interest rates,” says Adrian Wenger (46) from the VZ wealth center. To invest this money in real estate, lohne even in the case of high vacancy. “Even if there is a zero percent return, is still better than negative interest rates,” explains Wenger.

Less important-than-expected

the pension funds Are to blame for the high vacancy? No, says UBS in a new real estate report. “Pension funds wrongly under suspicion”, so the vote of the big Bank. It relies on building permits issued since 2012. Accordingly, in 2016, went, as the pension funds and insurance companies investors were the strongest as a construction-active “investments of 12 percent of the construction costs, and 16 per cent of newly approved housing” to your account.

In the following two years, the share of institutional investors decreased to around 10 percent for rental housing and 6 percent in total building permits. Means for UBS, these investors dominate the real estate market and therefore the vacancy is less strong than assumed.

the Regional impact on vacancy possible

This circumstance, the Figures of the pension funds themselves underline, the UBS experts would. Because the market volume of approximately 1600 billion Swiss francs for 2014, “only” around 30 billion Swiss francs on the account of the institutional investors. A maximum of 4000 homes per year, therefore, on this. Pension funds, and co. were able to influence the vacancy rate in Switzerland is “hardly crucial”, says UBS.

The report notes, but in the end: “However, pension funds carried a large can engage in projects in each of the regions the vacancy rate over the years.”

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Jennifer Alvarez is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.