Portfolio Valuation

Determination of market value and potential of real estate portfolios for investors.

We support you in determining the market value of your real estate portfolio and prepare independent appraisals that can be used for accounting or financing purposes, or to evaluate and assess various scenarios.

We do so using standard valuation approaches and setting out the methodology and sources of information used and the assumptions made, clearly and transparently.

In addition to deriving the market value of your portfolio at a specific point in time, we can also demonstrate the impact of possible strategic decisions. Such decisions can involve the implementation of development or redevelopment projects or the acquisition or disposal of assets, increasing the quality and resilience of your portfolio. 

We assist institutional and professional investors, private real estate owners, developers, pension funds, joint heirs, small and medium-sized enterprises (SMEs), global companies, the public sector and non-profit organizations in the appraisal of individual properties, real estate portfolios and corporate real estate, and in determining all the factors relevant to making real estate-specific decisions.

We provide our valuation services throughout Switzerland and internationally. We remain close to the market, and this enables us to observe and assess trends in the relevant real estate value drivers at all times.

We distinguish ourselves by providing you with more than market values according to recognized valuation standards. We also act as your advisor in important decision-making, and we share our knowledge and expertise with you so that you can make informed decisions.

Possible concerns

  • What is the market value of your assets or real estate portfolio?
  • What factors affect the value of your real estate?
  • How can you extend the lifecycle of your real estate?
  • How would a refurbishment project affect the value of your property?
  • How would investments in, or acquisitions or sales of individual assets impact the quality of a real estate portfolio?
  • When is the best time to sell a development project?
  • What upside / development potential lies dormant in your operational real estate?
  • How and to what extent can existing upside / development potential (e.g. rezoning) be reflected in an appraisal, having regard to different accounting standards?
  • Which value added levy is to be expected in the course of a development?
  • How is the value of a real estate portfolio affected by changes in macroeconomic conditions (such as interest rates or inflation) or property-specific value drivers (for example, market rents, vacancies, etc.)?
  • How do acquisitions, sales or investments in real estate influence the diversification of a real estate portfolio?
  • How do investments aimed at improving the sustainability of assets affect the value of a real estate portfolio?
  • How have the key performance indicators (KPI) of a real estate portfolio changed (e.g. market value, yields, WAULT)? How can you influence these KPIs?
  • Which deferred taxes exist on your properties and which are relevant for the valuation?
  • What are the land values of the properties in the portfolio?
  • How can measures be quantified to reduce the risk in real estate portfolios be quantified?
  • How do investments in ESG compliance affect the return on real estate investments?
  • Which real estate values can you use to finance your business?
  • How can real estate portfolios and other assets be divided fairly when resolving inheritance or succession scenarios?

Our solutions

An awareness of a real estate portfolio’s market value is important for institutional investors, companies and private investors. Reasons include accounting requirements, regulatory principles or the need for target-oriented information as a basis for business decisions.

A holistic analysis of the relevant value drivers of all assets in a real estate portfolio can reveal upside and/or development potential and the impact of possible scenarios (such as refurbishment) or market trends (for example, ESG, sustainability requirements and the effect of inflation) on the performance of an asset or portfolio.

Your real estate portfolio can be valued on a one-off basis or regularly, applying standard valuation approaches and relevant accounting standards as they apply to you. As independent valuation experts, we prepare accredited real estate appraisals.

We can advise you and/or determine the market value of development projects, calculate redevelopment scenarios or furnish you with real estate appraisals to assist with your acquisition and divestment plans. 

Our appraisals and scenario analyses show the effects of individual real estate strategies or current market trends on the market value of the overall portfolio.

We have a broad regional and specialist presence and value all types of real estate across Switzerland, from residential, office, commercial and retail buildings to mixed-use properties, special purpose properties, complexes or specialised income-generating land and facilities (such as industrial plants, clinics and hospitals, forests and quarries).

Alongside our standard real estate valuation services, we also collaborate with KPMG’s specialist valuation team in the preparation of business valuations.

Unsere Lösung: Bewertung von Portfolios

Project examples

A selection of portfolio appraisals from our list of references:

  • As an accredited independent real estate appraiser, we provide valuations of real estate holdings on an annual basis for accounting purposes. Our clients include real estate funds, investment foundations and quoted real estate companies with property portfolios of between CHF 50 million and CHF 3 billion per investment vehicle.
  • We appraise the market values of all properties individually and report the results both at asset level and consolidated across the portfolio.
  • The majority of appraisals apply the discounted cash flow method (DCF method) in accordance with the applicable accounting standards.
  • Being active across the country, we can undertake market-based real estate appraisals in every region of Switzerland.

  • Valuation of real estate portfolios for loan applications when raising debt capital. We act for a professional investor on the regular valuation of its real estate portfolio, preparing independent appraisals for raising capital and refinancing.
  • When properties are located abroad, we collaborate with our colleagues in KPMG’s international network and consolidate the valuation results in the local currency. 

  • Deriving and quantifying the effects of individual and cumulative changes in value drivers on the overall value of a real estate portfolio. Besides appraising the market value of a portfolio at a specific point in time, we also calculate additional scenario values for various clients, taking account of changes in individual parameters of relevance to value. This enables us to demonstrate the sensitivity of the portfolio value to particular factors.
  • For example, we show the effect that changes in parameters such as the discount rate, rental income or vacancy rate could have on the overall portfolio. 
  • We can also show the quantitative impact of changes in macroeconomic variables such as the inflation rate or regulations.

  • Evaluating variations of a renovation project to provide a target-oriented basis for making decisions. In the case of a property valued on an annual basis for accounting purposes for an institutional investor, we also provided our client with an analysis of various potential renovation scenarios.
  • We determined the value of the property on completion of the various scenarios, which allowed the available options to be compared and assessed in the context of the anticipated investment. Our results formed the basis for reaching a decision on the strategy for the property.

  • Presenting the most important value drivers at portfolio level and monitoring how they have changed over time. We regularly conduct comprehensive portfolio analyses as part of annual portfolio appraisals. This includes presenting the value drivers across the whole of the portfolio and pointing out the most significant changes compared to the previous year's appraisal (for example, cash flow forecast).
  • We can also identify and show changes in certain KPIs (such as yields or vacancies) over time, and the composition of the portfolio at different levels (e.g. regionally, by use).
  • The consolidated calculation of specific KPIs such as the WAULT can also be carried out at portfolio level.

  • Reviewing a real estate portfolio to determine whether it satisfies sustainability requirements and revising property-specific investment plans.
  • We carried out an assessment of the ESG compliance of properties across the portfolio and used this analysis to review the property-specific investment plans, suggesting modifications where appropriate.
  • By considering the revised investment plans in the periodic portfolio appraisal, we could ensure that the scenarios underlying the appraisals were appropriate for the owner's sustainability strategy and conformed to trends in ESG best practice.

  • Determining land value for accounting purposes or as a basis for profitability calculations. As well as appraising the property values, we regularly determine the land values of the individual assets within a real estate portfolio for a large housing cooperative.
  • By providing a breakdown of the market value between the land and buildings, it is possible to identify the relevant depreciation factors.
  • Knowing the land value also helps in determining the economic viability of renovation or development projects.

  • As an independent appraiser, we determined the value of a small real estate portfolio held by joint heirs. 
  • Due to different interpretations among the joint heirs, our valuation considered various development potential scenarios for the portfolio.
  • Our valuation report, which was supported by comprehensive official and legal statements, formed a quantitatively objective basis which the claimants used to reach an agreement. 

  • In our reviews of financial statements for annual audits, we also act as subject matter experts on real estate issues and portfolio appraisals.
  • We do this by reviewing the plausibility of the market values of selected properties determined by the independent real estate appraisers appointed by the company being audited or the investment vehicle.
  • Verifying a large number of market valuations gives us a broad and in-depth insight into the appraisals undertaken by other experts. This information supports our overall understanding of the property market, which is important for a real estate appraiser. 

Contact our experts for more information

Ulrich Prien

Partner, Deal Advisory, Sector Head Real Estate

KPMG Switzerland

Beat Seger

Partner, Real Estate Advisory, Chief Digital Officer

KPMG Switzerland

Kilian Schwendimann

Director, Deal Advisory, Real Estate

KPMG Switzerland

Laurent Aillard

Senior Manager, Real Estate Advisory

KPMG Switzerland

Overview Real Estate

Selling, valuing, managing, optimizing real estate. We provide multidisciplinary advice.