The CSL Real Estate Market Report provides facts, figures and estimates on the investment, residential and office market in Switzerland and in particular in the Zurich economic region. The CSL Real Estate Market Report is based on a broad range of rents and prices, data from statistical offices and assessments by experienced market participants, economic promoters and experts. In addition, findings from expert interviews with key players in the sector are incorporated.
 
And last but not least, it also reflects the experience our employees gain in their daily work.

SWISS OFFICE MARKET 2019

Agglomeration offer rents
Market changes price band
CHF/m² p.a.
Median
CHF/m² p.a.
Aarau 27 640 66 % 130 – 275 180
Baden-Brugg 28 980 9 % 125 – 310 180
Basel 111 820 -24 % 155 – 335 225
Bern 113 225 8 % 130 – 375 220
Biel 11 195 -14 % 110 – 220 155
Chur 7 020 -16 % 125 – 395 175
Fribourg 16 520 -18 % 150 – 230 195
Genf 411 935 -4 % 200 – 590 370
Lausanne 143 450 -6 % 145 – 365 230
Lugano 72 360 41 % 150 – 365 235
Luzern 32 660 -47 % 125 – 305 185
Neuchâtel 13 190 43 % 125 – 305 190
Olten-Zofingen 22 670 -4 % 120 – 270 180
Schaffhausen 17 725 9 % 115 – 225 165
Solothurn 7 310 -9 % 130 – 235 160
St. Gallen 36 405 -11 % 120 – 265 190
Thun 6 510 -36 % 135 – 220 185
Winterthur 44 065 57 % 155 – 315 220
Zug 73 673 24 % 135 – 465 260
Zürich 559 565 -7 % 135 – 485 230
Agglomerationen 1 757 918 -4 % - -

SWISS OFFICE MARKET

The positive economic growth and significant reticence to construct new property resulted in a stabilisation of the office market in most regions. A total of approximately 1.75 million m² of office space was available within six months in the Swiss agglomerations. This represents a decline of 4% compared with the previous year. The Zurich agglomeration registered the largest supply of 560,000 m2 in 2018, followed by Geneva with a supply of around 412,000 m2. The Lausanne, Bern and Basel agglomerations trailed behind with significantly lower supplies.

While the change in supply showed regional variations, there was a new development in terms of rents. The median figure did not increase in a single agglomeration in 2018, with quoted rents remaining stable at best. The sound economic fundamentals conceal the fact that the Swiss office market remains a tenant’s market. The rising demand is primarily concentrated in central locations or up-and-coming districts of the economic centres. Locations with poor public transport links and properties that do not meet the flexible criteria of the changing working environment are struggling to find new tenants.

Furthermore, owing to valuation mechanisms, owners maintained their rental levels despite the tepid demand in recent years, preferring to make concessions in the form of incentives such as capital contributions towards fit-out and rentfree periods. With occupiers’ willingness to pay remaining limited, quoted rents are falling nationwide. This trend will also continue in 2019.
 
„The positive economic growth is not a sufficient driver for the recovery of the Greater Zurich office market. Rents moved sideways in 2018 or even declined. 2019 will not see any reversal of this trend.“
Giuliana De Rinaldis
Head of Marketing
"The office market is functioning in central locations. In less sought-after areas, the story is quite different. These require in-depth analysis as well as bold and creative restructuring of the supply."
Jill Schlageter
Head of Property Management