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On entering 2025, we expected a recovery in global real estate markets to gain momentum. The tariffs have created new uncertainty and will likely see a pause in transaction activity as investors take stock. We still expect positive returns this year, but slightly lower and driven by income. Residential looks most defensive and resilient.

Real estate is a famously viscous asset class: it takes time to trade real estate. This increases its illiquidity, but it also shields it from short term market panics. Most real estate investors with a well-diversified portfolio enjoy restful nights while many equity investors may find the urge to stay up late or wake up early to see what the market on the other side of the world is doing.

With lower interest rates, the recovery of the risk premium and the current high market volatility, interest in defensive Swiss real estate investments has significantly increased. Investors particularly favor residential real estate due to the continuously strong fundamentals and low dependence on the economic environment.

Asia is bearing the brunt of the US tariffs. Macro could slow again. It’s still too early to cheer for faster rate cuts. We believe the impact will be varied across different real estate sectors. There are several relative safe havens to take shelter in, but ultimately, diversification will remain crucial, especially in an uncertain world.

Uncertainty is high, but prices are still more attractive than they were at the peak three years ago. For investors who are able to take a longer-term view, 2025 may still be a good reentry point for the real estate market.

Investing in cities that already have established life sciences real estate assets provides several strategic advantages. These locations offer a proven track record of collaborative success, reduced developmental delays, and a supportive and established supply chain ecosystem.