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Commercial Real Estate - Switzerland

Switzerland
  • The Commercial Real Estate market market in Switzerland is anticipated to reach a value of CHF US$1.09tn by 2024.
  • It is projected to exhibit a compound annual growth rate (CAGR 2024-2029) of 0.77%, leading to a market volume of CHF US$1.14tn by 2029.
  • In terms of global comparison, the United States is expected to generate the highest value in the Real Estate sector, amounting to US$25.3tn in 2024.
  • Switzerland's commercial real estate market is experiencing a surge in demand for office spaces due to the country's reputation as a global financial hub.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

In-Scope

  • Office buildings
  • Retail spaces
  • Warehouses
  • Industrial properties

Out-Of-Scope

  • Residential real estate
  • Publicly owned buildings used by the local government
  • Buildings used for public health care services
Commercial Real Estate: market data & analysis  - Cover

Market Insights report

Commercial Real Estate: market data & analysis

Study Details

    Value

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Analyst Opinion

    Switzerland, known for its picturesque landscapes and high standard of living, has a thriving Commercial Real Estate market. Customer preferences in the Swiss Commercial Real Estate market are driven by a combination of factors. The country's stable political and economic environment, along with its strong legal framework, make it an attractive destination for both domestic and international investors. Additionally, Switzerland's strategic location in the heart of Europe and its well-developed infrastructure further contribute to its appeal. Trends in the Swiss Commercial Real Estate market are shaped by various factors. One notable trend is the increasing demand for office spaces in major cities such as Zurich and Geneva. This is driven by the growth of industries such as finance, technology, and pharmaceuticals, which require modern and well-equipped office spaces. Another trend is the rising popularity of mixed-use developments, which combine commercial, residential, and retail spaces in a single project. This trend reflects the changing preferences of businesses and consumers, who seek convenience and a diverse range of amenities in their surroundings. Local special circumstances in Switzerland further influence the Commercial Real Estate market. The country's strict zoning regulations and building codes ensure that developments adhere to high standards of quality and sustainability. This not only enhances the attractiveness of the market but also contributes to the long-term value and durability of commercial properties. Additionally, Switzerland's limited land availability, particularly in urban areas, creates a scarcity of prime real estate, driving up demand and prices. Underlying macroeconomic factors play a crucial role in the development of the Swiss Commercial Real Estate market. The country's strong economy, characterized by low unemployment rates and high purchasing power, supports a robust demand for commercial properties. Furthermore, Switzerland's status as a global financial hub attracts foreign investment, which further fuels the growth of the market. Additionally, the country's stable currency and low interest rates create favorable financing conditions for investors, encouraging them to enter the market. In conclusion, the Commercial Real Estate market in Switzerland is thriving due to customer preferences for stability, strategic location, and well-developed infrastructure. The market is characterized by trends such as the demand for office spaces and mixed-use developments. Local special circumstances, including strict regulations and limited land availability, further shape the market. Underlying macroeconomic factors, such as a strong economy and favorable financing conditions, contribute to the market's growth and attractiveness.

    Methodology

    Data coverage:

    Figures are based on value of commercial real estate.

    Modeling approach / Market size:

    Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

    Forecasts:

    In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

    Additional Notes:

    The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

    Financial

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    Commercial Real Estate: market data & analysis  - BackgroundCommercial Real Estate: market data & analysis  - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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    Commercial real estate in Europe - statistics & facts

    After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.
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    Industrial and logistic real estate in the Nordics - statistics & facts

    Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.
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