The demand for office spaces in Switzerland is slowing down, leading to a slight increase in available office spaces.
However, prices are expected to remain relatively stable as many potential buyers maintain significant purchasing power.
On the five major office markets in Switzerland – Zurich, Geneva, Bern, Basel, and Lausanne – there has been a slight increase in office spaces available at the end of 2023 compared to the previous year.
The supply rate increased by 0.1 percentage points to reach 4.6% during this period. Zurich and Geneva recorded an increase in supply, while it remained stable in Bern and slightly decreased in Lausanne and Basel compared to the previous year.
Despite this increase, the office vacancy rate in Switzerland remains below 5%, comparatively lower than the European average of 7.7% last year. Opfikon and Wallisellen in the Zurich agglomeration, as well as the airport areas of Geneva and West Lausanne, are the only places with comparable rates.
Demand for office spaces showed a slight deceleration towards the end of the year, although it has not yet had a significant impact on supply. The office market in Switzerland remains liquid, even though the number of purchase transactions is currently lower than usual due to divergent expectations between sellers and buyers. However, signs indicate that some sellers may be willing to accept lower prices, although the price discovery and reassessment phase is still ongoing.
Notably, insurance companies and funds have been particularly active in the bidding process, although in the current interest rate context, they may begin to reduce their involvement or even sell properties. New owners include family offices, extremely wealthy individuals, high-net-worth individuals (UHNWI), and housing cooperatives.
Source: Handelzeitung Banking
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