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Switzerland Real Estate Market View

Robert Hauri, FRICS • 1/30/2023
Economic recovery after the pandemic 
The Swiss economy continues to recover from the economic restrictions imposed during the COVID-19 pandemic. This has led to low unemployment rate and dynamic consumer behavior.  

Further tightening of monetary policy 
The Swiss National Bank (SNB) further tightened its monetary policy in mid-December 2022. The SNB policy rate has been raised by 0.5 percentage points to 1.0 %. Additional rises in the SNB policy rate may take place to ensure price stability. The SNB forecasts inflation at a rate of 2.4 % for 2023, compared to 2.9 % in 2022. However, forecasts vary greatly across institutions. 

GDP growth 
Weaker demand from abroad and high energy prices as well as energy-supply uncertainties are likely to limit economic activity in 2023. The State Secretariat for Economic Affairs (SECO) predicts a growth rate of 0.7 % next year, down from 2.1 % in 2022. The forecast for Switzerland, as for the global economy, is subject to high uncertainty. Owing to stable domestic consumption, the risk of recession remains low. 

The demand for rented housing is currently very high and prices have risen by 1.1 % in comparison with the same quarter of the previous year. Immigration growth is one of the main reasons of rising prices. Another factor is smaller construction activity of developers due to higher financing costs, less building land, and more expensive building materials.  

Owner-occupied apartments and single-family houses also recorded price increase (+6.6 % for apartments and +7.2 % for single-family houses compared to the same quarter of the previous year). However, a small decline in demand for owner-occupied apartments has recently been noticed for the first time in years and the number of advertised flats has slightly increased. This can be explained with the economic slowdown and the rise in financing costs. Nevertheless, the demand remains high and exceeds supply.  

Developments in the labor market are becoming increasingly detached from the economic cycle. Employment figures continue to rise strongly despite economic slowdown and are fueling demand for office space. At the same time, the pace of new construction is likely to settle at a low level. Little new construction activities are taking place in the main Swiss cities, which may soon be reflected in rising rents. 

The environment remains challenging for the retail space. In context of worsening economic situation and the decline in purchasing power, retail sales are expected to stagnate in the coming months. Therefore, demand for retail space will decrease and rents will probably fall again. 

Since interest rates have risen further, debt-financed investments in real estate have become even less attractive. Nevertheless, Switzerland is still facing a high demand for residential property. Increased immigration, lower inflation than in neighboring countries and the lack of new building land support this tendency. Finally, office and retail properties in top locations remain attractive for institutional investors. 

05 December 2022

No Corona restrictions

Currently, no national measures are in place due to the COVID-19 pandemic. No proof of vaccination, recovery or testing is required for entry into Switzerland. Since the return to normal, responsibility for measures to protect the population has been delegated to the cantons.

Tight monetary policy and high inflation

The Swiss National Bank (SNB) tightens monetary policy further and increases the base interest rate by 75 bps to 0.5%. Further hikes are possible in December, which will cause rise of interest rates on SARON mortgages.

Due to higher prices for goods, in particular energy and food, inflation rose to 3.5% in August. According to the Swiss Federal Statistical Office the annual inflation forecast in Switzerland is 3% in 2022, 2.4% for 2023 and 1.7% for 2024. However, it is still expected to remain below the levels of most major industrialised countries.

GDP growth 

The Swiss National Bank (SNB) expects GDP growth of around 2% this year. This is about half a percentage point lower than at the latest assessment. Forecast uncertainty remains high. A global economic downturn, a worsening of the gas shortage in Europe and an electricity shortage in Switzerland pose the greatest risks.


The average asking rents for apartments in Switzerland compared with the same quarter of the previous year have risen by 0.6%. It is mainly due to strong population increase and shortage on the construction of new apartments for rent.

Transaction prices for apartments and single-family homes have continued to rise despite the higher cost of financing. Demand for owner-occupied apartments declined, but at the same time supply in this segment fell sharply. This resulted in a significant price increase of 7.3% in average. In the single-family home segment supply increased but demand remains on a high level. This explains the continuing price increase of 8.8% in average.

According to the Swiss Federal Statistical Office the vacancy rate fell from 1.54% to 1.31% within a year. In all seven major regions, fewer vacant apartments were offered for sale or rent than a year earlier.


The strong momentum on the Swiss labor market during the last few months is currently offsetting the structural consequences of the home office on the office space market. This has led to a slight increase in asking rents for office space of 0.6%. 


For retail space, the environment remains challenging. Online retailing and shopping tourism abroad have recently become more attractive due to the appreciation of the Swiss franc. This has a negative impact on the sales of some Swiss brick-and-mortar stores and is reflected in a rising number of bankruptcies. The supply of retail space has therefore increased and is expected to return to pre-pandemic levels. Rents remain under pressure.


As interest rates have risen, debt-financed investments in real estate have become less attractive, and further value corrections for direct real estate investments are foreseeable. However, properties in top locations remain attractive. In large parts of Switzerland, housing is in extremely short supply, which makes this segment still interesting for many investors.

10 October 2022

by Gregory Grobon

Rising electricity prices and risk of shortage

Electricity prices will surge in 2023. The Federal Electricity Commission ElCom has estimated an average increase of 27% for a typical household in Switzerland. It also ascertained that Swiss SMEs would be subject to a 24% increase of their total tariffs, considering average grid and energy costs,.

On its side, the Services industriels de Genève (SIG) has estimated an average increase in electricity tariffs of 22%, which places the canton in the low range at national level. The General Manager of SIG, Christian Brunier, recently spoke on this issue and presented the main factors behind the energy crisis in the European markets:

  1. the decline in available fossil fuels,
  2. the return of a logic of national energy security in Europe to the detriment of the notion of a European network,
  3. the increase of gas prices,
  4. the phasing out of nuclear power and the reduction of dependence on fossil fuels,
  5. speculative operations of traders and producers.

Thanks to the dams installed along the Rhône and the solar parks, Geneva benefits from a moderate impact. Indeed, SIG produces almost 40% of the electricity consumed at the regulated tariff and benefits from long-term contracts with Swiss hydroelectric producers. However, part of the electricity obtained on the markets is directly impacted by the sharp rise in tariffs and the risk of shortages.

In this respect, last month the authorities of the canton of Geneva wanted to quickly move towards a drastic reduction in its energy consumption, based on the cantonal climate plan and the new energy regulation.

To achieve this, the real estate sector must inevitably make its contribution. Geneva's building stock accounts for more than half of the canton's final energy consumption. Moreover, the lowering of the heat expenditure index (IDC) threshold from 600 to 450 MJ/m2/year now places 60% of the building stock, i.e. 29,000 buildings, above the upper limit. Owners are now required to undertake comprehensive renovation work or energy optimisation measures.

Since 70% of a building's energy consumption is attributable to heating, it would be important to revise the heat production system and consider installing photovoltaic panels. In the meantime, capping the maximum heating temperature at 20°C would significantly reduce a building's consumption without affecting user comfort. Other energy saving measures can be applied, such as:

  • the implementation of systems to coordinate weather and heating installations,
  • improvement of the thermal envelope,
  • optimisation of the lighting system in common areas,
  • ventilation and air-conditioning renovation,
  • revision of the heating system and installation of correctly sized heating circulators,
  • replacement of old appliances in the laundry room,
  • instruction and advice to tenants or owner-occupiers.

23 September 2022

by Robert Hauri

Market dynamics
The Swiss economy continues to recover from the restrictions during the COVID-19 pandemic - we are seeing strong employment growth, a historically low unemployment rate (July 2022 at 2%, -0.8% YOY) and dynamic consumer behavior. Nevertheless, a more turbulent period is likely to reach Switzerland and there is a risk of economic cooldown. As its neighbours, Switzerland is experiencing a historic increase in inflation (3.4% - highest level since 1993) and interest rates have been raised (Federal Funds Rate, June 22: increase of 0.5% to -0.25%) and further increases are foreseeable.

Swiss Corporate Real Estate
The strong momentum on the labor market is currently offsetting structural consequences of working from home. A slight increase in asking rents for office space was observed across Switzerland (+0.6% YOY).

The environment for retail space remains challenging. Online trade and shopping tourism have become even more attractive with the Swiss franc further strengthening against the euro. This weighs on sales of Swiss based Retailers and is reflected in an increase in bankruptcies. Available retail space has therefore increased, and rents are under pressure.

Office Letting Market
The positive development of H1 2022 continues. In the city of Zurich, 2.6% of the office space was available at the end of Q2 2022. Due to strong demand for offices in prime locations and a handful of very exclusive offers, prime rents have risen further and have reached CHF 900/m2/pa (net). Very different vacancy rates are seen in Zurich's agglomeration: in Opfikon/Glattbrugg a third of the space is unused, in Wallisellen and Kloten the vacancy rates are 9.3% and 8.9% respectively.

Office Investment Market
The CRE market also continues to look stable on the investment side. Investors previously focused on residential property have ventured into the office market as they were unable to buy in their original segment. This has put further pressure on prime office yields, which for the first time, are almost on a par with that of first-class residential properties.

However, a cooling off or at least stagnation of the investment market is foreseeable. Further increases of interest rates are expected. Further is the supply side under significant pressure due to the scarcity of major construction materials which could lead real estate investors to put projects with tight margins on hold.

17 August 2022

by Gregory Grobon

Swiss Energy Strategy 2050

Switzerland decided to reduce its greenhouse gas emissions to net zero by 2050 and to include this target in the country’s long-term climate strategy. The Swiss Federal Office of Energy (SFOE) presented, earlier this year, the vision for its building stock in 2050, as well as the issues and priorities that should be addressed to making this concept a reality. 

The Swiss building stock intake amounts to some 40% of the country’s final energy demand and one third of its CO2 emissions. Buildings also account for a substantial number of material consumption, and waste production. Beyond the environmental purpose, there is a great economic interest in exploiting the considerable savings potential in the building sector.

Switzerland’s 2050 Energy Strategy foresees that its building stock will go from 90 TWh to 65 TWh by 2050. Although the Confederation plays only a subsidiary role in all matters related to buildings energy consumption, the SFOE intends to contribute to the realisation of its idea. 

The SFOE's vision is symbolised by the German acronym “ROSEN”:

  • Reduction: The final energy consumption (heat and electricity) of the Swiss building stock will be reduced to 65 TWh by 2050.
  • Optimisation: The optimisation of energy consumption will become a mandatory measure for all types of buildings by 2030.
  • Substitution: Oil, gas and fixed electric resistance heaters will have been replaced by systems powered by renewable energy by 2050.
  • Renewable energies: Every building, neighbourhood and municipality will provide as much as possible of their own energy supply.
  • Sustainability: The legal framework for spatial planning must be in line with the 2050 Energy Strategy and further encourages densification.

The SFOE has therefore set itself nine priorities for action:

  1. Strengthen the “Buildings Programme” based on the 2015 Harmonised Cantonal Promotion Model (ModEnHa).
  2. Encourage a better consideration of the buildings operating phase within the country’s main standards and labels.
  3. Ensure the exemplarity of the Confederation, its close partners, and new economic players, in terms of energy efficiency.
  4. Develop and support the four main standards and labels as references for Switzerland’s building sector: CECB, Minergie, SNBS and Site 2000 watts.
  5. Promote research in the field of energy renovation with a view to climate neutrality throughout a building’s life cycle.
  6. Ensure the availability of a sufficient number of competent building professionals through the development of training.
  7. Improve instruments encouraging energy renovation, such as the one-off payment (RU), public tenders (AdPu), and CO2 compensation (Comp. CO2).
  8. Stimulate the development of initiatives related to the Energy Performance Contracts (CPE).
  9. Monitor the energy consumption of the Swiss building stock and produce statistical reports.

In short, the objectives of the energy policy for the building stock contributes to moving towards climate neutrality as planned by the SFOE. Although the cantons are primarily responsible for implementing measures to normalize buildings’ energy consumption (Article 89, paragraph 4), the 2050 Energy Strategy leads the way.


14 June 2022

by Gregory Grobon

The start of 2022 was marked by a rise in oil and energy prices, against a background of persistent geopolitical tensions.
The EU zone, weakened by the restrictive measures put in place during the two-year health crisis, is seeing its economic recovery restricted by the Ukrainian war and inflation.
Purchasing power has fallen significantly in France, Germany, and the United Kingdom, with a first quarter decline of between 4% and 7.5%.
As a safe haven in times of crisis, the strong Swiss Franc has preserved the country’s economy from inflation, with the rate stagnating at 2.1% in the first half of 2022. 
Happening in the wake of the health crisis and its consequences for the supply of raw materials, the war in the Ukraine is further amplifying the inflation phenomenon. 
Despite the inflationary context, growth above inflation is still expected, attesting to the good health of the Swiss economy which, despite a steep decline of the stock markets, is doing well.
Government bonds are following this upward trend, despite yields being still slightly below inflation rate.
In parallel the rise in mortgage rates, which began in January 2022 to curb an overly rapid economic recovery, is being confirmed without affecting institutional investors eagerness to purchase commercial real estate portfolios, that are better protected against asset depreciation thanks to rent indexation.
In the first quarter of 2022, SPGI Geneva alliance partner of Cushman & Wakefield, has sold portfolios that reached record values with yields of 2.2% on 120 Mio. 
The relative size of the Swiss real estate market favours this trend, with demand outstripping supply, resulting in yields that remain aggressive despite the global economic context.


05 May 2022

by Robert Hauri

Corona restrictions lifted
The Federal Office of Public Health has lifted the national restrictions and bans. The cantons may take measures if required. 

Inflation above average
The Swiss National Bank (SNB) is retaining its expansionary monetary policy. It is keeping the policy rate at -0.75 %. In addition, if needed, it is willing to intervene in the foreign exchange market to reduce pressure on the Swiss franc. Russia’s invasion of the Ukraine has led to worldwide uncertainty. This is one of the reasons why the Swiss franc remains highly valued. In February inflation reached 2.2 %. This is mostly due to the significant increase in the price for oil products and goods. The pressure on the prices is likely to persist further due to the war in the Ukraine. The SNB’s new conditional inflation forecast stands at 2.1 % for 2022, and 0.9 % for 2023 and 2024. The forecast assumes that the SNB policy rate remains at -0.75 %. 

GDP growth slowed 
Economic growth has slowed in Switzerland. The SNB expects GDP growth of around 2.5% for 2022. However, the forecast for Switzerland is subject to high uncertainty due to the future course of the war in the Ukraine and further sanctions as well as the tight supply of raw materials. 

Liquidity in the rental housing market has generally declined. Advertised apartment rents fell by an average of 2.6 %. Blurring the boundary between home and work encourages a reassessment of the housing situation. Various real estate market indicators such as search subscriptions, vacancies and insertion times continue to confirm a shift in demand towards less central locations and larger apartments. Additionally, the second-home market is currently booming.

A decline in supply and demand for home ownership still on a high level is noticeable. This led to price increases of 6.7% for a medium-sized condominium and 8.3% for a medium-sized single-family house in the last 12 months. Nevertheless, the purchase of residential property is still attractive in terms of housing costs because mortgage interest rates are still very low. In 2022, further price growth is expected owing to supply shortage. Across all sub-segments, an average increase is of 2.5% for condominiums is forecasted and 3.0% for single-family houses.

After the pandemic-related restrictions were lifted in March, many people have returned to their offices. However, we assume that about 30% of working time will still be spent outside the office, which may curb space demand by ca 10%. Average rent has decreased by 2.6% compared to prior-year quarter. 

The recovery in the retail market continues to progress. This can be explained, among other things, by the fact that more foreign visitors can travel again and are spending their money in Switzerland. On the other hand, the effects of structural change in the retail sector are still observable. Average rent has decreased by 2.9% compared to prior-year quarter. Nevertheless, retail space in central locations is still in demand. 

Swiss real estate investments remain attractive. The transaction market has been active, especially in the residential sector. Retail and office properties in top locations are still perceived as good investment. 


10 March 2022

by Robert Hauri

Corona restrictions eased
The Federal Office of Public Health announced easement of further Corona restrictions from the 17 February. Masks and Covid certificates are no longer required to enter shops, restaurants, cultural venues and other public settings and events. The recommendation to work from home has also ended. Only the requirements to isolate in the event of a positive test and to wear masks on public transport and in healthcare institutions are to remain till the end of March.

Inflation above average
The Swiss National Bank (SNB) is maintaining its expansionary monetary policy. It is keeping the policy rate at −0.75%. The SNB’s new conditional inflation forecast for 2022 is slightly above that of September 2021. This is primarily due to higher import prices, above all for oil products and for goods affected by global supply bottlenecks. According to the Swiss Federal Statistical Office the annual inflation rate in Switzerland reached 2.2% in February of 2022. It was the highest inflation rate since October 2008. It is still to remain below the levels of most major industrialised countries, but above its average of the last 10 years.

GDP growth
According to the State Secretariat for Economic Affairs SECO, Swiss GDP grew by 0.3% in the last quarter of 2021, following a 1.9% increase the previous quarter. The recovery continued at a more moderate pace. 

Despite high demand, advertised apartment rents fell by an average of 2.7% compared to the previous year. This decline is due to the still large supply volumes in some places and a shift in the overall market towards more peripheral locations. The trend towards home offices is also increasing the demands on bigger apartments. The number of search subscriptions for rental apartments with 3 to 5½ rooms has increased sharply, while the demand for small apartments with 2½ rooms or less has decreased. 

Widespread demand for home ownership is noticeable in the dried-up market. In the last 12 months, the supply fell by a further one-fifth. Vacant building land is generally in short supply in many regions. This again drove up transaction prices for residential property. According to the Swiss Federal Statistical Office, prices of single-family houses rose by an average of 6.0% last year, and prices of condominiums by an average of 5.5%. The increase in single-family house prices was particularly pronounced in the urban municipalities of a medium-sized agglomeration. Prices for condominiums rose most strongly in the rural municipalities.

Due to the easement of pandemic-related restrictions, many people are returning to the offices. As a result, most companies expect demand for office space in top locations to remain stable. There are large regional differences in terms of supply. High market liquidity can be observed in the transaction market on Lake Geneva, in southern Ticino and in the Zurich conurbation. In Switzerland's five largest office markets - Zurich, Geneva, Bern, Basel, and Lausanne - the supply ratio of available space increased from 4.3% to 4.7% within twelve months. This is also due to the construction of new office space.

As e-commerce has gained further share in the retail market, it can be assumed that demand for retail space will remain under pressure. Average rent has decreased by 1.3% compared to prior-year quarter. Rents for retail space away from top locations are expected to continue to decrease. However, retail space in unique locations is still in demand.

Swiss real estate investments have remained attractive. The transaction market has been lively, especially properties in top locations. Despite some concerns about inflation, many institutional investors express interest in real estate. 


27 July 2021

by Robert Hauri

After weeks of decreasing coronavirus infections despite the easing of lockdown measures, cases are increasing again. The vaccination rollout is continuing across the country; however, Switzerland is lagging most countries in Western Europe. Since the end of June, eligible travellers who are fully vaccinated can enter Switzerland without restrictions. The Swiss population accepted the COVID-19 Law in June 2021, which grants the federal council additional powers to mitigate the negative impacts of the corona pandemic on society and the economy. The most important measures are payments for short-time work (furlough leave), compensation for loss of income, assistance in cases of hardship, and support for cultural and sports organisations. 

Due to the high investment pressure of institutional investors, the Swiss real estate market was highly resilient during the whole pandemic. The ongoing investor appetite generates a high demand for real estate with stable cash flows, particularly in good locations. Yields for CBD Offices and high street retail properties are almost unchanged. 

Additionally, owner-occupied housing also experiences an unprecedented price growth. This derives from a surge in interest for owner-occupied housing due to the pandemic with a combined decline of supply over the last few years.


25 May 2021

by Robert Hauri

The improving epidemiological situation in Switzerland has allowed the easing of lockdown restrictions. As of 19 April, restaurant terraces, sport facilities, leisure and cultural facilities were able to reopen. Universities could go back to teaching in the classroom with a maximum of 50 people and events with capacity restrictions are permitted.

The vaccination roll-out is in full swing, with around 1,000,000 people fully vaccinated and people over the age of 16 now able to register for the vaccination in most cantons. Private gatherings are still limited to a maximum of 10 people, clubs, bars and the inside of restaurants remain closed and working from home remains mandatory. 

Due to the lockdown measures by the Federal Government, parts of the service sector have seen a decline in business activity. The SECO (State Secretariat for Economic Affairs) therefore assumes a prop of Switzerland’s GDP in the first quarter. If the epidemiological situation permits further easing of the lockdown measurements, the domestic economy is expected to recover. For 2021 the SECO expects GDP growth of 3%, which would be an above average growth rate. The unemployment rate is expected to decrease gradually to 3.3%.

Institutional investors and pension funds continue to have high investment pressure, which led to the high resilience of the Swiss real estate market. However, the real estate investment market is increasingly characterised by geographical and sectoral differentiation, which has been further reinforced by the COVID-19 pandemic. Investors are focusing on the main cities of Zurich, Basel, Lausanne and Geneva and the residential market. At the same time interest in storage and logistics properties is further growing due to the increased e-commerce activities sparked by the pandemic. Investment properties in good locations and secure cash flows were particularly sough after, and limited supply of such properties let net initial yields tighten even more. 

Residential rents in the major cities are expected to remain stable or slightly increase. Outside of the major cities, the residential rental market is increasingly becoming a tenant’s market due to higher vacancy rates. 

The supply of office space in Swiss agglomerations increased as a result of the pandemic-related home office obligation. Companies are feeling uncertain about the future and postponed decisions regarding their office space planning. While demand has fallen in the
agglomerations, the major cities have seen an increase in demand. The changes in the demand are also reflected in the rent price as well as the yields for office properties.  

Asking rents for retail properties on high streets have remained stable. The stability is due to the inertia of the retail market with its long contract terms and termination periods. In addition, the financial assistance from the federal government in form of short-time work compensation and bridging loans likely had a stabilising effect.


14 January 2021

by Robert Hauri

The count of COVID-19 cases could not be brought under control so the Federal Government decided to take further measures. The number of customers per square metre in shops has been reduced, there is a two-household rule for private gatherings and restaurant visits, and there are now various restrictions for ski resorts. Furthermore, the Federal Government continues to strongly recommend working from home.

The net yields for Swiss residential properties remain stable throughout the COVID-19 pandemic. The vacancy rate in the top cities such as Zurich and Geneva remain very low with stable median rent prices of CHF/sq m 330 in Zurich and CHF/sq m 370 in Geneva. The interest rates are expected to remain low until at least the end of 2021, which makes residential properties in sought after locations still a favourable investment for pension funds, other institutional investors as well as wealthy private investors.  

The office market in Zurich, Geneva and Basel remained stable during the year of 2020. Prices declined slightly in the middle of 2020 but surged again towards the end of the year. The vacancy rate in Geneva stayed the same (5%), office space in Basel slightly increased from 1.8% to 2.2% and in Zurich the vacancy rate dropped from 1.4% to 1.1%. The median rents per square metre are CHF 360 in Zurich, CHF 240 in Basel and CHF 470 in Geneva. In peripheral locations and locations with weaker infrastructure the impact of COVID-19 is noticeable. The economic outlook as well as the increasing demand for a modern working environment make these locations less desirable. Potential tenants in peripheral locations are highly price sensitive, which drives prices down. 

The rent prices for retail space in the high street of Zurich increased to CHF/sq m 440 from CHF/sq m 400 at the beginning of the year. Retail properties in the cities of Basel, Lausanne, Berne as well as Geneva also experienced a slight increase in its rental prices. Non-food retail space located within walking distance of the high street as well as on the outskirts experienced a decrease in demand with consequent price decline. 

In summary, demand for real estate with stable cash flows in good locations remains high amongst Swiss investors. Net yields for residential, CBD offices as well as high street retail properties are almost unchanged. The yields for office and retail in secondary locations experienced a noticeable increase. 


29 October 2020

by Robert Hauri

The number of new COVID-19 cases has risen almost exponentially over the last weeks, and as of today, the federal government in Switzerland has decided on several additional measures that will drastically impact everyday life.

Gatherings in public spaces and private events are now limited to 15 and 10 people, respectively, and masks must be worn practically everywhere.

Sports and cultural activities are restricted to an extent that will make most of them impossible. Nightclubs must close and there is a curfew from 23.00 to 6.00, universities must switch to distance learning, and working from home is strongly recommended. 

Appetite for real estate investment remains high, also driven by Swiss pension funds and insurance companies whose cash surplus increased during the first lockdown.

We have seen a lot of traction on transactions relating to property types including:

  • residential;
  • mixed-use; and
  • commercial/industrial including developments.

Investors are still looking at core offices, but there are currently only smaller properties on the market. We expect most ongoing deals to be closed before end of the year - now accustomed to the pandemic situation, most investors have experience on how to deal with it.

Office space demand from occupiers is fluctuating, with some corporates still securing large spaces going forward, while others are now focusing on more flexibility. 


19 August 2020

by Robert Hauri

The outbreak of the COVID-19 pandemic led to the most serious slump in economic activity in Switzerland for over four decades. Even though there are signs of the business situation easing, there is still a measurable decline in demand.

The development of the Swiss economy will remain dependent on that of the pandemic. In updated scenarios, a leading Swiss Economic Institute forecasts that output will shrink by 4.9% this year, based on the assumption that a likely increase of new infections in the winter months can be contained.

Nevertheless, the Swiss economy is coming through the crisis relatively well compared with the rest of Europe, with a 2021 GDP growth rate of 4.1% expected after all. Residential real estate and certain core products crystallise as a safe haven for investors, and the importance of new asset classes like data centers is elevated. 


5 August 2020

by Robert Hauri

Switzerland has had very few new COVID-19 cases since the middle of May, so that in June most restrictions have been lifted. Due to slightly rebounding case numbers in July, it is since then mandatory to wear a mask on public transport and self-quarantine for ten days upon entering Switzerland from high-risk territories. Business continues as usual. 

Corporate occupiers are bringing people back into their offices (with and without social distancing) and there is a debate as to whether they would be looking into reducing the existing footprint. Though we have some examples of companies putting excess space on the market, this seems to be rather linked to a difficult economic situation and decline in business turnover as opposed to implementation of alternative workplace strategies. 

Office and retail letting activities are picking up again as tenants with expiring leases are searching for attractive opportunities. Even with demand being slightly less than normal, because of low supply, the major centres of German-speaking Switzerland exhibit paradox increase of market rent in certain submarkets (e.g. Zurich CBD). However, differences in office vacancy rates and market rents are expected to widen between city and fringe locations. 

The funding situation of Swiss institutional investors has not changed, and they are still looking to invest in core and core+ real estate with a home bias. Large transactions initiated pre-COVID are now continued, with the sale of the 53,000 sq m Glatt Centre in Zurich and other notable transactions having been announced lately. 


23 April 2020

by Robert Hauri

Last Thursday the Federal Council announced a plan for ‘the way back’ to the ‘new normal’: 

  • 27 April: some shops can open again, such as: hairdressers, DIY/garden centres, florists
  • 11 May: all retail shops can reopen, schools as well 
  • 8 June: universities to reopen, as well as museums and zoos 

Borders are still more or less closed, people are still being told to stay home and work from home. No specific date for restaurants, bars, coffee shops and sports facilities to reopen has been announced. This said about 75% of Swiss companies are still working normally. 

The commercial real estate market starts to react to the slowing down of the economy. Landlords with restaurants and shops in their portfolios face a lot of pressure to reduce rents or even waive rent. We see that the retail real estate-sector and the hospitality and leisure-industry are for the time being almost ‘dead’. In the office market, we see transactions go further as if nothing had changed and others are put on hold or are even stopped. In the investment market we see transaction-processes not being started, some are put on hold, some deals still will close. 


16 April 2020

by Robert Hauri

Since last week, the lockdown in Switzerland has been extended to 26 April. Schools, universities, shops (grocery stores, gas stations still open) and restaurants remain closed.


9 April 2020

by Robert Hauri

In Switzerland the lockdown was announced on 13 March. Schools, universities, shops (grocery stores, gas stations remain open) and restaurants are closed at least until the 19 April. People have been told to stay at home. Offices, construction sites and factories are still working - although everyone is asked to work from home wherever possible.  

The authorities have developed several packages to try to help those affected by measures taken by the Federal Council (Bundesrat). Such as: 

  • loans
  • short time work for all sectors 

The commercial real estate market has started to react to the slowing down of the economy. Landlords with restaurants and shops in their portfolios face pressure to reduce rents or even waive rent - at least until the end of the lockdown.  

Even though some landlords already face difficulties in securing rents for commercial space the real estate industry has not reacted so far.  

There is no clear vision for the future, but it seems the retail-sector, is for the time being almost ‘dead’, particularly as all shops are closed right now.  

There is also uncertainty in the office market. Some transactions are proceeding as normal whereas others have been put on hold or are even stopped entirely.  

In the investment market we see transaction processes not being initiated, some being put on hold, some are closed. Pricing still looks quite high and unchanged. 


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Insights • Economy

Spain Real Estate Market View

A regular update on the commercial real estate market in Spain, reflecting all our service lines: Offices, Industrial, Capital Markets Group, Retail and Hospitality.
blue duotone graphic of people in office
Insights • Economy

EMEA Markets View

Our EMEA local market research colleagues share the latest real estate market views from their countries.
Carros eléctricos, Lisbon, Portugal
Insights • Economy

Portugal Real Estate Market View

A regular update on the commercial real estate market in Portugal.
Andreia Almeida • 12/20/2021
Insights • Economy

Bulgaria Real Estate Market View

A regular update on the commercial real estate market in Bulgaria.
Simona Luiza Mircheva • 11/23/2021
Brussels Office Marketbeat
Insights • Economy

Belgium Real Estate Market View

A regular update on the commercial real estate market in Belgium.
New Perspectives (image)

New Perspective: From Pandemic to Performance

As a global leader in the commercial real estate (CRE) industry, Cushman & Wakefield offers clients a new perspective on COVID-19’s impact on CRE and beyond, preparing them for what’s next.
Michael Boonshoft


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