At Le Bijou, we believe that unleashing the full potential of real estate investing demands a synergy of creativity, capital, location, and unparalleled attention to detail. Our mission? To provide investors with a genuine alternative to access their share of luxury real estate.

It’s no secret that, with rising interest rates, traditional real estate has faced headwinds in recent months. To make matters more difficult, most investors are pursuing the same “buy to let” strategy. This typical operational model leaves little room for competition and makes it nearly impossible to find an outperforming deal, as property is generally considered a commodity. As a result, most returns tend to be within the same range due to the high capital inflow in recent years. The result is that neither these investments nor their returns are particularly dynamic.

Most professional real estate investors, such as pension or real estate funds and REITs, are only incentivized by assets under management (AUM), and rarely by the performance of their assets. Because of this, real estate is often seen through the lens of the old economy. By contrast, Le Bijou looks at real estate investments with a fresh perspective, fully aware of the current economic realities. Rather than repeating old patterns, Le Bijou responds to the lack of innovation in the real estate space. The result? An operational model that has not only outperformed the traditional approach for over a decade, but continues to evolve with the times

Leveling Up the Luxury Real Estate Market

The result of Le Bijou's innovative investment model is an entirely new way of crafting bespoke opportunities for investors. Le Bijou identifies prime luxury locations with high capital growth potential, then brings to life tech-enabled apartments that transform buildings into cash-flow powerhouses. Investors are able to invest in prime real estate assets and businesses operated by an exceptionally profitable, crisis-resistant, and competition-proof business model.

Although real estate has always been a cornerstone of wealth generation and preservation, Le Bijou has raised the bar even higher by integrating elite infrastructure with enviable environments. As the saying goes, location is everything, and this pearl of wisdom is particularly true for the luxury real estate market.

The Perks of Perfect Placement

Real estate assets, when properly structured and managed, are an excellent way to preserve capital for years to come, as well as generate stable and predictable cash flow. While a decent location can add value, a phenomenal location that exceeds all value metrics makes for an unbeatable investment. Since there is a limited supply of properties in outstanding locations, this only serves to increase their value due to their uniqueness and exclusivity. Physical features and furnishings can be remodeled or replaced, but nothing can change the geographical location upon which the property has been built.

It's no wonder that the mantra (or perhaps cliché) still rings true that location, location, location are the three most important factors to consider when buying a property. However, beyond the neighborhood, ambiance, green spaces, civil infrastructure, as well as the development plans for the region, there are macro-level sociopolitical and economic factors that can significantly affect the reasons why properties in one country can carry a higher value in the long term than equivalent properties in another country.

Five Factors in favor of Swiss real estate

Few markets can compare to the prospect of investing in Swiss real estate. Le Bijou offers a suite of stunning centrally located properties to select from for investors to carve their slice of Swiss property. Beyond their aesthetic and practical appeal, there are five key reasons why investors favor Swiss properties in particular.

1. Political Neutrality

At the top of the list, investors are fond of political neutrality. Switzerland’s reputation for abstaining from conflict and instead focusing its efforts on fostering development and well-being not only make it one of the safest places in the world for storing wealth, but also one of the wisest places for growing it.

2. Stable Economy

Secondly, Switzerland has an incredibly stable economy. The country’s fiscally conservative policies perennially guide the country toward continued growth. Major upswings (bubbles) and recessions are rare. Similarly, the Swiss Government has maintained a remarkably low debt-to-GDP ratio relative to other nations. This increases Switzerland's stability and reduces risks for investors looking to protect their assets. Historically, the Swiss economy, particularly Swiss real estate, has shown great resilience to global financial crashes.

Debt-to-GDP ratio in Switzerland, Germany, and the USA (in %)
Source: tradingeconomics.com

According to our calculations*, over the past 10 years, there has been a low correlation between monthly returns (capital appreciation) from Swiss real estate versus US and global (excluding US) real estate: just 0.358 and 0.31, respectively. In contrast, the correlation between monthly returns from US real estate and global real estate (excluding US) reaches an enormous value of 0.8222.

What do these statistics illustrate? Essentially, the high level of independence of the Swiss real estate market from the global market makes Swiss real estate a good hedge against recession and global crises.

* The calculations were made using the SPDR Dow Jones Global Real Estate ETF (RWO) as US real estate, Vanguard Global ex-U.S. Real Estate Index Fund (VNQI) as global (excluding US) real estate, and SXI Real Estate® Fnds Broad TR (SWIIT) as Swiss real estate.

3. Rule of Law

Thirdly, investors value Switzerland's reputation as a strong nation under the rule of law, where fundamental property rights are enshrined. Anyone investing or storing their assets in Switzerland – whether in a secured vault in Zurich or a property situated by the pristine Lago Maggiore – can rest assured knowing that their assets will be protected.

4. Stable and Diverse Market

Switzerland’s stable and diverse property market means that investors have access to virtually every available real estate opportunity, from residential to commercial and industrial, alongside luxury options. These opportunities apply to both individual investors and corporate entities alike. In addition, the Swiss economy is considered one of the most resilient and stable in the world. Having adequate capital and liquidity as a buffer has contributed to the ongoing stability of the Swiss financial system and made Switzerland a symbol of consistency and defiance. It resembles the spirit of the Swiss people, who are always cautious and strictly neutral.

5. Well-Developed Banking System

Finally, Switzerland’s well-developed banking system, known for its discretion and sophistication, has earned a reputation as the prime financial haven worldwide. The Swiss financial industry manages over CHF 7.88 trillion in assets (as of the end of 2020) and has been undeterred by lending to foreign nationals. Consequently, Swiss residents and outsiders alike are able to obtain financing for property investments in Switzerland. The wide range of options available to choose from makes it an even more attractive investment option. However, even the most ideal politico-economic conditions can be further aided by having an inside understanding of the real estate market space.

What Sets Le Bijou Apart? Innovative Investing Opportunities

Le Bijou understands that good deals are hard to find. Quality opportunities are difficult to source, operationally intensive, and often burdened by high prices, misalignment, or poor performance. Quantitative easing (money printing) has driven real estate prices to an all-time high, while returns have declined. In light of this, Le Bijou's real estate operating model has brought investors a real alternative (with consistent above-market returns) for over a decade.

Le Bijou services hotel guests, high-margin long-term tenants, and top-tier corporations by providing a unique product in coveted prime locations worldwide. Moreover, through strategies such as working exclusively with accommodation contracts (just like a hotel), implementing a high-tech AI-supported concierge system, and creating highly diversified income streams across diverse markets, Le Bijou has masterfully streamlined its operating costs.

Investors also enjoy an extensive array of investor benefits. An investment in Le Bijou represents an entry into an exclusive network of like-minded investors passionate about real estate and keen to extend their network. The perks of investing with Le Bijou include complimentary stays, networking events, and the opportunity to host personal events.

Up-and-coming Le Bijou projects are now open to institutional and private investors. This provides you with the opportunity to invest in individual development cases and earn the developer, owner, and operator margins combined.

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