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14 Investment Property

In CHF million
        2021   2020
Balance as at 1 January       38 120   34 866
Additions       2 813   3 580
Capitalised subsequent expenditure       238   206
Disposals       –935   –1 351
Gains/losses from fair value adjustments       1 505   847
Classification as assets held for sale       –69  
Foreign currency translation differences       –439   –28
Balance as at end of period       41 234   38 120
of which pledged as security for mortgage loans       2 342   1 464
             
Investment property consists of            
completed investment property       40 395   36 771
investment property under construction       727   1 248
Right-of-use investment property       112   101
Total investment property       41 234   38 120

Investment property held by the Group includes residential, commercial and mixed-use properties primarily located within Switzerland, and comprises both completed investment property and investment property under construction. Property held for investment purposes comprises land and buildings owned by the Group to earn rentals and/or for capital appreciation. Property that is used by the Group itself or leased to, and occupied by, another entity of the Group is classified as owner-occupied property under property and equipment. Property acquired with a view to its subsequent disposal in the near future is carried under assets held for sale.

Rental income from investment property was CHF 1361 million for the period ended 31 December 2021 (2020: CHF 1242 million). Operating expenses arising from investment property that generated rental income amounted to CHF 316 million for the period ended 31 December 2021 (2020: CHF 291 million).

The undiscounted lease payments to be received under operating leases were as follows.

In CHF million
    31.12.2021   31.12.2020
Less than 1 year   767   705
1 to 2 years   761   653
2 to 3 years   705   577
3 to 4 years   656   532
4 to 5 years   595   517
More than 5 years   2 410   1 870
Total undiscounted lease payments   5 893   4 855