There is resistance to mega host UBS

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As the new leader of the Swiss housing market, UBS is receiving criticism. Will the bank have too much power in the real estate market after the Credit Suisse takeover? That’s exactly what industry insiders fear.

Following the takeover, UBS will become the new number one in the housing market. It replaces Swiss Life, which was previously the largest host in the country.

To date, UBS has about 37,000 apartments. These figures take into account all real estate that the bank holds in real estate funds and investment institutions. According to the annual report, there are 35,317 flats in the portfolio of CS.

New UBS dominates the market

Some properties are part of the Credit Suisse Investment Foundation, which was not directly affected by the merger. But even if not all real estate is transferred to UBS, one thing is clear: the takeover will make the bank the largest player in the market. A little over 60,000 rental apartments are likely to be in the hands of UBS – as many in the city of Olten SO.

According to real estate experts, this is only about three percent of the entire market. However, among institutional investors, UBS is becoming the dominant market force.

“There is a new concentration of risk in the real estate market,” says Hans R. Holdener, 56, CEO and founder of Swiss real estate fund Helvetica. He estimates that the bank currently owns half of all real estate owned by institutional investors. “It just can’t be,” he says. And the demands: The Financial Market Authority must finally act! A plan is needed on how to reduce the market power of the new UBS.

Danger of excessive rent

Green National Assembly Member Natalie Imboden (52) also wants the federal government to look into the matter more closely. It demands transparency. How many flats does UBS have? And how high are the bank’s returns on rents? How to avoid excessive rents? Imboden asked these questions in a motion of no confidence that he submitted to the Federal Council on April 12, 2023.

“The new bank will create a yield monster,” Imboden tells Blick. Problem: No one knows how much profit banks make with housing developments. “This has to change,” Imboden says. “There is a risk of misconduct” If a player as big as UBS continues to focus on high returns when it comes to rent, others may do the same. This is particularly devastating as acute housing shortages benefit homeowners. Rising rents are a harsh reality.

Source :Blick