The office real estate market in Switzerland is enjoying a positive outlook, driven by economic recovery and accompanying job growth, according to a Credit Suisse studyexternal link published Wednesday.
Credit Suisse says office space is now playing a more prominent role than residential housing in leading a recovery in the real estate market.
Following an “exceptional” performance by the Swiss economy in 2018, employment growth has increased significantly – especially in the corporate services, health, and information technology sectors – which has reinvigorated demand for office space.
The growth represents a rebound from last year, which saw these sectors lose some 10,000 jobs, the report states.
Meanwhile, traditional office sectors like financial services, wholesale trade and telecommunications are still seeing reduced employment and are no longer driving demand for Swiss office space.
The growing demand has been seen mainly in the office markets of large urban centres, which are being targeted by “companies seeking to position themselves as attractive employers for skilled labour”, according to Credit Suisse.