What is a real estate asset?
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The notion of a real estate asset covers a variety of properties – land, buildings and associated rights – that can generate income and increase in value over time. It is also an essential component of personal wealth, offering multiple advantages as part of an investment strategy. So, what exactly is a real estate asset in Switzerland? What are its benefits? Here is what you need to know.
What is a real estate asset? A simple definition
Concretely, a real estate asset refers to any property that has an economic value, in the sense that it can generate income and appreciate in the long term. For example, owning a residential property enables you to collect rent and potentially achieve a capital gain upon resale.
This concept includes different types of assets:
- Residential properties. Detached houses and rental apartments make up a large share of the Swiss real estate market, with rental demand remaining strong and steady.
- Commercial properties. These include offices, shops, business premises, logistics warehouses, industrial spaces, restaurants and hotels, healthcare facilities, etc. They are characterised by potentially high yields, but also greater economic fluctuations than residential real estate.
- Securities. This refers to holding shares in funds or companies that own properties. Examples include contractual investment funds, investment companies with variable capital (SICAVs), and limited partnerships for collective investment (SCmPCs).
This asset class is governed by specific laws in Switzerland, which guarantee their legal protection and ensure appropriate management. It plays a decisive role in wealth building thanks to its many advantages – which we will now explore.
Why choose to invest in real estate assets?
Real estate assets represent a particularly attractive opportunity within a financial investment strategy. There are several reasons for this:
- Real estate is a tangible asset, rooted in the real economy, easy to understand, and generally more stable than the stock market. This also applies to securities, since the investor holds shares in a company or a fund managing physical properties.
- The procedures for buying and selling property are transparent. In addition, this type of asset is supported by a strong legal framework
- Real estate investment requires a detailed understanding of the local market and its specificities. A carefully chosen investment is secure when made with the guidance of an experienced professional.
- A real estate asset can be acquired through direct investment (purchasing a rental property or a building with several apartments) or indirect investment (real estate funds, property companies, crowdfunding, etc.).
- Property generates rental income during its holding period and may also yield a capital gain upon resale.
- Diversification opportunities allow investors to design a personalised strategy tailored to their financial and wealth management goals.
Considering all these advantages, real estate assets are a fundamental pillar of personal wealth: strongly protected by law, they combine security, immediate income, and significant growth potential. Moreover, as an anti-inflation allocation of assets, they help preserve wealth value in fluctuating economic contexts.
Frequently asked questions about real estate assets in Switzerland
What are the different types of real estate assets?
The main categories are:
Residential properties (detached houses, rental apartments)
Commercial properties (offices, shops, warehouses, hotels, clinics, industrial spaces)
Real estate securities (fund shares, SICAVs, property companies, crowdfunding)
Why invest in a real estate asset?
Real estate investment offers several advantages:
A tangible and stable asset, supported by a strong legal framework
The ability to generate regular rental income
A potential capital gain upon resale
Protection against inflation
Wealth diversification, through direct or indirect investments
Is investing in real estate safer than investing in stocks?
Yes, generally speaking. Real estate is less volatile than financial markets as it is rooted in the real economy. However, it requires a thorough analysis of the local market and professional guidance to minimise risks.
Can you invest in real estate without directly buying a property?
Yes. You can invest through real estate funds, investment companies or real estate crowdfunding. These solutions make it possible to benefit from real estate profitability without directly managing a property.
What tax advantages are linked to real estate assets in Switzerland?
Tax rules depend on the canton and the type of investment. For example, rental income is taxable, but certain maintenance costs or mortgage interest may be deductible.
Why are real estate assets a cornerstone of wealth?
Because they combine security, immediate income, and long-term growth potential. Resilient in the face of economic fluctuations, they help preserve and increase an investor’s wealth.
