Eight faces of regional development: what real estate reveals

Industry, finance, and tourism are often cited to explain regional development. Yet real estate shapes territories just as much as it depends on them.

Thanks to the concept of TREES (Territorial Real Estate & Economic Systems), eight regional configurations show how economic, financial, and real estate activities combine to produce very different trajectories in this sector.

International financial centers (Zurich, Geneva)

Highly financialized real estate, strong presence of institutional investors, among the highest rents. Real estate acts as a catalyst for urban development.

Major national cities

Cities such as Lausanne, Bern, or Basel: strong rental demand, renovation rather than new construction, significant role of insurance companies and pension funds. Real estate supports economic cycles.

High-income metropolitan regions

Affluent suburbs near financial centers. Intense commuter mobility, very high prices, high-end services. Real estate creates an attractive residential ecosystem.

Metropolitan mobility regions

Rapidly growing peri-urban areas: morphological diversity, housing boom, strong attractiveness for households. Real estate has been a major driver of urbanization.

Industrial and residential regions

Medium-sized cities with manufacturing traditions. Affordable real estate, high levels of construction, gradual economic diversification. Real estate accompanies regional transition.

Commuter-based industrial regions

Small industrial towns with very affordable housing. Strong dependence on external employment. Here, real estate is more induced than a driver.

Agricultural regions and secondary tourist resorts

Alpine valleys where real estate (often owner-occupied) helps sustain economic activity through second homes. One of the few remaining active drivers.

High-end tourist resorts (“Golden Snows”)

Davos, Zermatt, Verbier… Luxury real estate plays a decisive role: tourist infrastructure, very high prices, international clientele, small permanent populations.

What this reveals

The study analyzing these phenomena shows that real estate is no longer a simple by-product of the local economy. In many regions, it is the starting point, structuring financial flows, residential attractiveness, and development trajectories.

To understand territories today is to understand their real estate systems.

Source: The role of real estate in the development of cities and regions: Territorial real estate and economic systems, Crevoisier, Theurillat, Rota, Segessmann, Merchoffer, 2025.