November 2025

Dear investors, dear partners, dear Seraina friends and dear readers

With SMART , we present a new digital format - compact, well-founded and with substance. Not just another newsletter, but a medium that provides orientation, illuminates the background and places "developments" on the real estate market in a broader context.

We asked ourselves: Does the world really need more information? Probably not. But it does need more relevance: Thoughts that connect, insights that stick and content that inspires dialog.

SMART stands for five topics that guide us every day at Seraina Invest:
S - Seraina & Strategy: Where we are and where we are heading
M - Market & Opinion: Assessments, trends and voices from the industry
A - Analysis & Investment: Focus on products, innovations and performance
R - Rules & Reality: Regulatory, ESG and tax influences in transition
T - Team & drive: people, projects and commitment

SMART is not intended to generate a flood of information, but to create added value - precise, transparent and up-to-date. You can browse through SMART, read it digitally or download it as a PDF - just as it suits you.

We would be delighted if SMART becomes a tool for you: for reflection, categorization and further thinking.

With Seraina Real Estate AG (SREAG), we are also opening up to qualified private investors. The focus is on smaller new-build projects that generate rental income as early as the planning phase and thus co-finance the development independently. This model generates returns before construction is completed and combines sustainability with profitability.

Immanuel Malka and Diego Sieber, you received the building permit for your "Fachstrasse 74" project in Oberrieden after just one year. A remarkable speed in an environment where many projects are delayed by conditions or objections. How did you manage the balancing act?

Immanuel Malka: The decisive factor was the proactive and early involvement of the building authorities and the Oberrieden building commission. We consistently worked together as partners and ensured clear communication channels, which significantly accelerated the process.

What prospects were you able to offer existing tenants
Diego Sieber: We were able to ensure a fair transition with extended notice periods, personal support and a tenant care program that provides active assistance in finding accommodation. All previous residents have already found a new home. A clear sign of social responsibility and sustainable neighborhood development.

How will your project enhance the neighborhood?
Diego Sieber: The existing old building from the 1950s did not meet today's structural norms or current quality and energy efficiency standards. In its place, a new building is being built to the Minergie standard, which meets the highest ecological and living standards. Thanks to the careful urban planning and the high-quality design of the surroundings, the new building will enhance the neighborhood in the long term.

What is special about the usage concept?
Immanuel Malka: The plans include nine 3.5- to 5.5-room apartments and four flexibly usable studios spread over two residential floors. This innovative concept offers a clear USP: the studios make it possible, for example, to ideally separate living and working without any inconvenient commuting time.

Economic development
The Swiss economy continues to hold its own in a globally challenging environment. The domestic economy, driven by consumption, construction and net immigration, is proving to be stable. However, due to the weak international momentum, a slowdown in the pace of growth has been observed since the beginning of the year, which is also reflected in the lower creation of new jobs. On Swiss National Day, Switzerland was also hit hard when the US President announced a 39% tariff on Swiss goods exports to the USA. To date, the Swiss government has not succeeded in reducing this tariff through negotiations. There is also uncertainty about the extent to which additional tariffs on pharmaceutical exports will affect the Swiss pharmaceutical industry. The significantly more difficult foreign trade relationship with the US is further dampening the economic outlook for 2026, as lower exports and more cautious corporate investment are to be expected. The consensus forecasts for real GDP have been revised downwards accordingly; growth rates of 1.1% and 0.9% are expected for 2025 and 2026 respectively.

Private consumption and government spending are once again likely to be the main pillars of growth in 2026. Construction investment is expected to develop negatively in 2025; however, positive impetus can be expected in 2026. Civil engineering is currently picking up, while investment in building construction continues to decline. However, the recent recovery in building permits suggests that this key segment for the Swiss real estate market is also likely to recover next year and make a positive contribution to the economy as a whole again.

SNB, inflation and interest rates
Inflation remains virtually non-existent in Switzerland. The October figures show year-on-year inflation of 0.1% and core inflation (excluding the volatile food and energy components) of 0.5%. In many areas, such as food and household goods, prices are on a downward trend, while the hotel industry, rents and education are showing increases. An important factor at present is the strong external value of the Swiss franc, which is leading to imported deflation from abroad.

At its monetary policy assessment in September, the SNB kept the key interest rate at 0%. It indicated that it would refrain from introducing negative interest rates as long as inflation remained within this range. Nevertheless, interest rate futures are slightly pricing in such rates. Yields on 10-year Swiss government bonds have also fallen further and were below 0.15% at the beginning of November.

The current low interest rates combined with the uncertain international environment have meant that Swiss real estate investments are once again a highly sought-after asset class among pension funds. With a volume of over CHF 7 billion raised, indirect real estate products are likely to be among the most successful years for capital procurement this year. As the majority of the capital raised is primarily focused on residential real estate, there is strong investment pressure in this segment.

The weighted premium for listed real estate funds was 37% at the end of October, well above the long-term average of 19%. At 23%, the premium for SXI Real Estate Shares Broad was also significantly higher. The high premiums are the result of the lack of alternatives to real estate in the renewed zero interest rate environment.

Investors' persistently high appetite for real estate is currently leading to a surplus of buyers on the transaction markets. The preference of most market participants remains clearly on residential real estate. This concentration of demand is depressing net yields on transactions (see Fig. 1) and at the same time resulting in revaluations within investor portfolios, which is reflected in particular in falling discount rates.

The fact that we could observe such solid demand is also due to the fact that the rental markets are also developing solidly. As we illustrate in Fig. 2, vacancy rates remain low or have fallen even further in various cantons. This also means that construction projects that will be completed in the coming quarters are likely to continue to meet with high demand.

Residential property is also benefiting again from the fall in interest rates. This has also led to a price surge here. Residential property prices are rising again this year by over 4% across Switzerland. Significantly higher price growth can be observed in the hotspots.

Construction market and Basel III

A new regulatory framework for bank lending has been in force since this year. The introduction of Basel III has noticeably increased capital requirements; in particular, institutions must now hold two to four times more equity for construction loans. This tightening has led to higher margins and made lending in this segment much more selective. Commercial construction loans with high loan-to-value ratios, which are currently the most difficult to structure and place, are particularly challenging. As a result, the supply of construction projects is increasing as individual developers, who tend to have higher loan-to-value ratios, are forced to sell projects. This results in opportunities for predominantly equity-financed investors, such as pension funds through investment foundations.

Which topics were particularly in focus?
A key issue was the merger of the Swiss Development Residential (SDR) and SIF FOCUS vehicles. The background to this decision was the low investment volume and the low demand for commercial project developments. For investors, the merger means a more focused portfolio, greater transparency and a more efficient use of funds within the foundation.

It was also particularly important for us to open up the foundation, which now allows investors to subscribe throughout the year. This is an important step towards making investment decisions easier to plan.

Does this mean that traditional emissions are a thing of the past?
No, quite the opposite. Our issues remain an integral part of our offering. The 26th issue of Swiss Development Residential and the 3rd issue of SIF LIVING ESG were very successful - with a total volume of CHF 113 million. This shows that our approach is convincing and that investor confidence is strong. Issues continue to offer investors the opportunity to enter clearly defined investment phases and benefit from a well-filled project pipeline - with attractive prospects within a controlled framework.

How do you see the coming years, especially 2026?
I am confident. We have created a solid foundation and have many exciting projects in the pipeline. In 2026, we want to consistently continue on our path - with a clear focus on quality, sustainability and growth.

With Andreas Staub joining our team in November 2025, we are also sending a clear signal for the further expansion of our activities in French-speaking Switzerland and the deepening of our relationships with institutional investors in French-speaking Switzerland.

I would also like to take this opportunity to thank our investors for their trust, cooperation and the path we are taking together.

When two worlds come together, something special is often created - as is the case with the new collaboration between Seraina Invest and BoConcept. The common goal: to create high-quality living environments that evoke emotions, bring rooms to life and take real estate sales to a new level.

As part of the collaboration, the Danish furniture store BoConcept is completely furnishing selected show apartments through Seraina Invest - with a focus on homeliness, design and functionality. In this way, an empty space is transformed into a place that tells stories. Prospective buyers can not only orient themselves better spatially, but also connect emotionally with the home. This makes the purchase decision easier and makes the living space tangible even before they move in.

A professional photo shoot captures this atmosphere: the resulting images are used in exposés, sales brochures and social media campaigns - thus strengthening the visibility of both brands. Buyers also benefit from individual advice from BoConcept and an exclusive furniture discount from the furniture store.

For Seraina Invest, the cooperation is more than just a marketing measure. It is the expression of a philosophy: real estate is not just a space, but a place to live. With strong partners like BoConcept, it is possible to make this feeling tangible at an early stage - stylish, inspiring and with real added value for buyers.