Housing That Adapts to Every Stage of Life
Interview with Dieter Kräuchi, CEO of Novavest Real Estate AG
Housing needs are changing. Smaller households, an aging population, and rising rents create new challenges for real estate companies. Swiss-based Novavest Real Estate AG focuses on compact apartments, senior-friendly housing, and targeted development of existing properties. CEO Dieter Kräuchi explains the opportunities arising from these trends and regulatory obstacles making real estate investment difficult.
Since its founding, Novavest Real Estate AG has grown steadily and now manages a real estate portfolio valued at approximately CHF 1 billion. A major step in its development came in 2024/2025 with the acquisition of SenioResidenz AG, which strengthened the company’s position in senior-friendly housing.
Smaller Households, Changing Needs
Residential properties account for approximately 60% of the portfolio, while the remaining 40% consists of commercial properties, primarily office buildings and educational facilities. Smaller units dominate the residential portfolio, with more than 80% of apartments featuring no more than three and a half rooms, so Novavest primarily targets single- and two-person households as well as single parents.
“We expect the trend toward smaller households to continue,” explains Dieter Kräuchi. With rising rents, he also anticipates growing pressure to reduce living space per person. Demographic changes are another key factor shaping the company’s strategy. Many older people want to remain independent and continue living in their own homes for as long as possible. This requires apartments that remain accessible even as mobility becomes limited, with step-free access, appropriately designed bathrooms, and technical assistance systems such as emergency call devices. Depending on the location and residents’ purchasing power, the range extends from senior-friendly apartments to assisted living residences.
Thinking Long Term, Investing Strategically
In the commercial segment, Novavest focuses on market-based rents rather than properties in the most expensive prime locations. The vacancy rate across its entire portfolio is below 2%. When acquiring properties, the company prioritizes good public transport connections and value-creation opportunities through active asset management. “We want to position ourselves in the middle of the market,” says Dieter Kräuchi, offering properties for a broad range of residents and businesses while continuing to improve existing ones. Novavest aims for net-zero emissions by 2050, with renovations and layout adjustments wherever structurally possible. Regulation is another obstacle, says Dieter Kräuchi, citing conflicts between historic preservation and fire safety requirements. “We need a regulatory framework that encourages investment,” he argues. Looking ahead, Novavest intends to focus on selective acquisitions, enhancing the value of existing properties, and maintaining a real estate portfolio that meets long-term market demand.