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Contribution Details

Type Master Thesis
Scope Discipline-based scholarship
Title Comparative Analysis of Luxembourg “REITs” and Swiss Real Estate Funds
Organization Unit
  • Kristina Neumann
  • Michel Habib
  • Jacqueline Haverals
  • English
Institution University of Zurich
Faculty Faculty of Business, Economics and Informatics
Number of Pages 161
Date November 2017
Abstract Text According to valuations of real estate experts, the global real estate market is the largest asset class in the world. Residential real estate represents the largest store of wealth for individuals, whereas commercial real estate serves as space for retail, offices and manufacturing, while at the same time creating jobs, and hence, contributing largely to the economic growth. Real estate investors are attracted by high and stable total returns accruing from rental income conjunct with the lower levels of volatility compared to investments in equities and bonds. This paper focuses on indirect investments into real estate enabled by real estate investment trusts (REIT) and real estate funds (REF) by focusing specifically on two countries – Luxembourg and Switzerland. Luxembourg is currently one of the largest centers for REF creation in Europe in terms of both the number of funds established and the total capitalization of its REF market. Swiss REF market is only half its size. In order to identify the reasons for Luxembourg’s attractiveness in this space, this paper takes a deep dive into the regulatory requirements for REF formation and daily business activities, examines in detail the applicable fiscal treatment in both countries and presents the risk and return analysis of the largest REFs in Switzerland over the last five years.
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