Why location comes first
A building can be refurbished, a layout adapted, a tenant mix improved. Location, by contrast, is the one quality that can never be changed — it is the foundation of all value creation.
In established Swiss locations with durable demand, flats stay let and value development stays robust even when the broader market wobbles. This stability is the real protection for returns.
Micro-location and macro-location
The macro-location — city, region, accessibility — determines long-term demand. The micro-location — street, orientation, neighbourhood, noise — decides rent and lettability in everyday terms.
Both must be right. A first-class district helps little on a noisy thoroughfare, and the best address won't carry if the region has no demand.
When a high yield is a warning sign
A conspicuously high initial yield almost always compensates for a risk: a difficult location, deferred maintenance, short leases or structural vacancy. The market does not give yield away.
We therefore examine the substance first — location, build quality, layout, tenant mix — and only then the number. If the asset creates lasting value, the yield is the consequence, not the promise.
