40 Years of Real Estate Investments: The Countries with the Best Performance
Last update: July 22, 2025
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In 1985, Back to the Future took cinema audiences by storm, Ronald Reagan and Mikhail Gorbachev held their first summit in Geneva—and in a small Zurich office, Wüest Partner was founded. Today, four decades later, some 500 specialists support the real estate industry with data intelligence, advisory services, and software solutions. One thing has remained unchanged: Wüest Partner does not invest in real estate itself—allowing the firm to conduct its analyses independently and free from conflicts of interest.
To mark our 40th anniversary, we asked ourselves a simple yet revealing question: What would have become of your wealth had you invested 100,000 units each in listed real estate companies across 14 countries on January 1, 1985—and simply held those positions until December 31, 2024?
Methodology at a Glance
| Focus | Explanation |
| Observation Period | January 1, 1985 to December 31, 2024 (40 years). |
| Initial Investment | 100,000 units of local currency (for future eurozone countries, the euro-equivalent amount); Investment date: first trading day of 1985. |
| Countries Included | Australia, Germany, France, Hong Kong, Italy, Japan, Canada, Netherlands, Norway, Sweden, Switzerland, Singapore, United States, United Kingdom. |
| Analytical Basis | Total return indices for real estate equities (REITs, property companies, SIICs, etc.); Dividends continuously reinvested. |
| Portfolio Rule | Buy-and-hold strategy (no rebalancing, no hedging). |
| Currencies | Performance in local currency. |
| Costs | No consideration of hedging, transaction or tax costs — gross potential and pure market risk are shown |
| Data Source | GPR General Index (Total Return) by Global Property Research B.V. Includes all companies with a market capitalization above USD 50 million (for two consecutive months), a free float greater than 15%, and at least 75% of revenue derived from real estate. |
Impressive Wealth Growth by the End of 2024
The findings are striking: By December 31, 2024, real estate investments would have at least doubled—such as in Canada—or multiplied nearly 66-fold, as seen in Hong Kong. Adjusted for inflation, the results range from a real loss in Canada to an almost 19-fold increase in wealth in Norway.
Achieving such returns, however, required investors to endure sometimes significant price volatility. Moreover, the outcomes vary considerably from country to country. Behind each figure lies a distinct chapter in the real estate, capital market, and currency history of the respective nation. What follows is a look at the key developments and turning points in seven of the 14 markets analyzed by Wüest Partner Research.
| Country | Final Value (nominal terms) | Average Annual Return (nominal terms) | Final Value (real terms) | Average Annual Return (real terms) | Sharpe Ratio* |
| Hong Kong | HKD 6.63 M | 11.1% | HKD 1.75 M | 7.4% | 0.22 |
| Australia | AUD 5.96 M | 10.8% | AUD 1.57 M | 7.1% | 0.36 |
| Norway | NOK 5.87 M | 10.7% | NOK 1.83 M | 7.5% | 0.20 |
| Sweden | SEK 4.99 M | 10.3% | SEK 1.65 M | 7.3% | 0.27 |
| USA | USD 4.17 M | 9.8% | USD 1.38 M | 6.8% | 0.31 |
| Singapore | SGD 3.59 M | 9.4% | SGD 1.81 M | 7.5% | 0.19 |
| France | EUR 2.52 M | 8.4% | EUR 1.08 M | 6.1% | 0.26 |
| Switzerland | CHF 2.17 M | 8.0% | CHF 1.33 M | 6.7% | 0.46 |
| United Kingdom | GBP 1.11 M | 6.2% | GBP 0.35 M | 3.2% | 0.12 |
| Italy | EUR 1.05 M | 6.0% | EUR 0.31 M | 2.9% | 0.08 |
| Japan | JPY 0.81 M | 5.4% | JPY 0.62 M | 4.7% | 0.15 |
| Germany | EUR 0.61 M | 4.6% | EUR 0.27 M | 2.6% | 0.07 |
| Netherlands | EUR 0.28 M | 2.6% | EUR 0.12 M | 0.5% | 0.00 |
| Canada | CAD 0.19 M | 1.7% | CAD 0.07 M | -0.8% | −0.05 |
* Sharpe Ratio = the ratio of annual excess return (relative to the risk-free rate) to volatility. The higher the ratio, the more favorable the risk-return profile.
Source : Global Property Research; Calculations: Wüest Partner
Hong Kong: From Soaring High to Hard Landing—and Back Again
Few real estate markets extract as much value from so little land as Hong Kong. Between 1985 and 1997, both residential and office prices—as well as stock market valuations—soared. Then came the Asian financial crisis of 1997/98: from late 1996 to August 1998, listed real estate companies lost around 75 percent of their value, while home prices fell by 2003 to levels roughly 70 percent below their previous peak.
Yet Hong Kong’s open port and export-driven economy ignited a nearly decade-long rebound. From 1999 to 2007, real GDP grew at an average annual rate of 6 percent; real estate equities delivered average annual returns of over 18 percent during the same period. The global financial crisis of 2008/09 briefly interrupted this upward trajectory—but losses were swiftly recouped.
Since 2019, however, mass protests, new national security laws, and pandemic-related border closures have added to market unease. Studies show wider bid-ask spreads and, at times, greater intraday volatility on the Hong Kong stock exchange. By the end of 2024, real estate stocks are trading 34 percent below their April 2019 peak.
Australia: Tailwinds from the Commodity Boom and Migration
Australia is home to one of the world’s oldest REIT frameworks. Its listed property vehicles are known for high payout ratios and benefit from strong demographic support: high net migration drives sustained demand and underpins the real estate market. This combination of demographic growth, a robust dividend culture, and economic momentum from the commodities boom delivered double-digit total returns to investors over many years. An initial investment of AUD 100,000 in 1985 would have grown to nearly AUD 6 million by 2024 in nominal terms.
The downside became evident during the Global Financial Crisis (2007–2009), when the real estate index plunged by nearly 70 percent. Yet aside from this sharp decline, volatility remained relatively moderate by international standards—and losses were typically recouped quickly. Those who weathered the GFC crash—as well as a handful of smaller setbacks—were rewarded with swift recoveries, resource-driven expansion, and reliably high dividend yields.
Norway: Not for the faint-hearted
Norway offers royal returns—but is arguably best suited for patient investors with strong nerves. An investment of NOK 100,000 in 1985 would have grown to NOK 5.87 million by the end of last year. Adjusted for inflation, that amounts to 18 times the original capital (NOK 1.83 million)—the highest real wealth gain among all countries considered. The journey, however, was far from smooth: between 1989 and 1992, and again from 2007 to 2009, Norwegian real estate stocks each lost more than 70 percent of their value. And yet the market rebounded—driven by two key factors:
- The Government Pension Fund Global—today one of the world’s largest sovereign wealth funds with assets of around USD 1.8 trillion—continually injects equity into the Norwegian economy, thereby also providing stabilisation for the country’s financial sector.
- Real estate developers in Norway have traditionally operated with high levels of debt financing. This leverage results in above-average gains during upswings—but can equally lead to steep losses during downturns.
The result is a volatile yet exceptionally high-yielding real estate market over the long term. Not for the faint of heart—but a rewarding journey for those able to weather sharp market downturns.
France: Relatively Stable Performance
France’s SIIC sector (Sociétés d’Investissements Immobiliers Cotées) has delivered a solid performance: an investment of EUR 100,000 in 1985 would have grown to EUR 2.52 million—equivalent to EUR 1.08 million in real terms, a respectable outcome by international standards. The market has seen less volatility than many others, though it has not been without setbacks. The most severe downturn occurred during the global financial crisis, when the market dropped by 58 percent.
Since 2020, structural shifts such as the rise of remote work and the cost of ESG-compliant building upgrades have weighed on the outlook for traditional property types. Nonetheless, long-term investors who maintain confidence in Paris as an economic and cultural hub of global importance continue to benefit from relatively stable distributions—and from the opportunity to participate in the ongoing transformation toward more flexible and sustainable property uses.
United Kingdom: Real Returns Rather Below Average
Investments in listed real estate assets in the United Kingdom have delivered solid distributions—but currency and political risks have weighed on overall results. An initial investment of GBP 100,000 in 1985 would have grown to GBP 1.11 million by the end of 2024 in nominal terms. Adjusted for inflation, however, just GBP 346,000 remained—a notably weaker outcome in an international comparison.
The UK is a textbook case of capital market liberalisation, whose potential has been repeatedly overshadowed by currency and political uncertainties. Milestones such as the deregulatory boom of 1986 or major pound devaluations in 1992 and 2016 had a more pronounced effect on share prices than rental trends or valuation shifts in the property market. Those who weathered the recurring setbacks benefited from respectable dividend payouts. But overall, real returns and the return-risk profile have remained below average by global standards—largely due to high volatility. A bright spot is the logistics property segment, currently buoyed by stable demand. Traditional London office buildings, by contrast, face headwinds from high financing costs, ESG retrofit requirements, and increasingly cautious tenant demand.
Germany: Interest Rate and Confidence Shocks
When trust becomes scarce, investment markets take the hit. An investment of EUR 100,000 in 1985 would have grown to EUR 614,000 by the end of 2024 in nominal terms—but only EUR 274,000 in real terms. The market’s deepest crisis came during the global financial crisis, when real estate stocks plunged by 83 percent. A Sharpe Ratio of just 0.07 underscores the point: in Germany, the risk investors assumed was scarcely rewarded.
Germany’s listed real estate sector developed relatively late. Initially shaken by the crisis in open-ended property funds, it only began gaining momentum with the rise of large publicly traded residential groups. Yet much of the value generated in recent years has been eroded by the recent surge in interest rates. Investing in Germany requires, above all, patience: patience for the slow structural modernisation of the economy and the property market—and for the recurring waves of interest rate and confidence shocks that have repeatedly roiled the German market over the past decades.
Switzerland: Stability as a Success Factor
Switzerland is well known for its political and economic stability—and this has clearly worked in its favour. An investment of CHF 100,000 in 1985 would have grown to CHF 2.17 million by the end of 2024, with CHF 1.33 million remaining after inflation adjustment. That equates to steady—if unspectacular—growth over four decades. The maximum drawdown from peak stood at a relatively modest −32 percent. Most notably, Switzerland boasts the best risk-return profile among the 14 countries examined, with a Sharpe Ratio of 0.45.
What may appear at first glance to be middling performance is, upon closer inspection, a textbook case of stable and resilient market dynamics. The combination of moderate leverage, strict spatial planning, and high equity requirements offers effective protection against excesses—and thereby also against deep downturns.
Institutional investors in particular value this profile: it delivers reliable payouts, low volatility, and genuine diversification—without the extreme swings of commodity- or currency-driven markets. This is a market that doesn’t shine through spectacle, but through reliability—like a Swiss timepiece.
The Strong Franc: A Constant Headwind
We also examined what result an investor would have achieved by investing CHF 100,000 in each of the 14 countries forty years ago. Looking back, the Swiss franc has steadily appreciated against all foreign currencies considered over the past four decades. Had the starting capital been invested not in 100,000 units of each local currency, but rather in Swiss francs—converted into the respective foreign real estate indices—this currency strength would have acted as a constant headwind.
In practical terms, this means that the average annual returns of the foreign markets drop by approximately 1.5 to 3.6 percentage points—reflecting the average depreciation of those currencies relative to the franc.
There is one exception: Hong Kong. Despite currency losses, the market still delivers an average return of 8.1% p.a. when measured in Swiss francs—slightly exceeding that of the Swiss market (8.0% p.a.). However, this modest return premium comes at a cost: the annual volatility of Hong Kong’s real estate equities is around 36 percent—more than twice that of Switzerland’s relatively stable market, which exhibits a volatility of roughly 14 percent.
Even with full currency hedging, the cumulative returns of most countries remain below those of Switzerland. This is because the cost of hedging tends to offset the benefit of higher local interest rates. And in higher-risk markets—such as Hong Kong—the more volatile risk-return profile persists, despite the currency hedge.
Read more about the short- and long-term outlook for the Swiss residential property market in the Immo-Monitoring report (German and French).