Building boom continues while offices stay empty
Last year a record high CHF47.3 billion was invested in new commercial properties in Switzerland, despite dwindling demand for office space. Many of the new buildings are struggling to find tenants. (SRF/swissinfo.ch)
Despite many empty offices, building continues. In the north of Zurich a dozen new office towers are under construction. Real estate expert Yonas Mulugeta has studied the office space market in Zurich. His findings have revealed that in the first half of this year 5% of all offices stood empty. This isn’t much compared to other countries, but enough to worry investors in Switzerland.
With the oversupply it’s a renters market. Zurich is not alone with the problem. Geneva also has a 5% vacancy rate.
One of the biggest building projects in the pipeline is near Zurich airport, named “The Circle”. It’s a vast structure for offices, a hotel and congress centre. The costs are estimated at CHF1 billion. The final decision to go ahead with the project was only taken in December and work will begin next year.
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