Real estate investment decision

An investor’s decision to buy should, among other things, be based on

  • real estate research
    • seller (including reason for sale)
    • macro location
      • master plan and usage plan
      • centers
      • supra-regional transport infrastructure
      • availability of workforce
      • the location’s tax situation
    • micro location
      • location of property
      • type of property
      • extent of property
      • topography
      • views
      • sun exposure
      • slope
      • neighbors (and their real estate objectives)
      • complete Land Register extract, cadaster plan and geological information
      • accessibility to
        • public transport
        • schools
        • shopping
        • local and general access
      • emissions of noise, dust, smells, electrosmog (high-voltage power lines)
      • attractiveness of location and image of district
    • new construction:
      • suitability for development
      • terrain
        • geology
        • hydrology
        • contamination or legacy liabilities
      • archeological risk during excavation
    • existing properties:
      • plans (building permit and alteration plans)
      • description
      • historic building
      • tenancy profiles, rental contracts including documents stating conditions and tenant solvency
      • rental calculations and rental increase provisos
      • suitability for alterations, conversion and extensions pursuant to SIA Standard 469
  • analysis
    • analysis of real estate market
    • location analysis (see real estate research, above)
    • analysis of usage (including marketing concept)
    • profitability analysis
  • synthesis
  • fiscal planning
  • exit scenarios.

Latest factors


  • location, location, location
  • location beats condition of building every time


  • general
    • advantages of architect-designed buildings
      • real estate designed by famous architects is more easily rented or sold
      • mass developments lack a sense of exceptionalism, much valued today professionally or in private life
    • facades of timeless design to be preferred over trendy exteriors
    • flexible spatial division allows adjustments to different future use without major structural changes – it may even prevent a change of tenant
  • office buildings
    • sustainable, ecologically sound construction and management are advantages
    • spatial flexibility to accommodate usage changes
      • building structure that can accommodate
        • cubicle offices
        • open-plan offices
        • group offices
        • combined offices
      • job sharing
      • desk sharing / desk at home / telecommuting
  • multi-family dwellings
    • large windows
    • open-plan living (kitchen-living room combination)
    • flexibility to accommodate changes to, say, living and work space
  • owner-occupied apartments/condos
    • horizontal separation evoking rental apartments
    • vertical separation saves on fire walls, conveys the sense of an owner-occupied home, relatively free of disputes with neighbors.

Good advice isn’t expensive

Investors often want a second opinion before making a preliminary decision, or they seek a location recommendation.

Other than the above-mentioned Latest factors (see box, above), no generalizations are possible because each location and property is unique and should be judged as such.

Feel free to ask us. Our real estate specialists and architects are ready to act as your consultants on real estate purchases, project developments and sales.

Print / Share: