RICS study: Swiss commercial real estate is "very expensive
According to the Switzerland Commercial Property Monitor Q3 2016 of the Royal Institution of Chartered Surveyors (RICS), 36 percent of the experts surveyed consider commercial property in Switzerland to be "very expensive. In the previous quarter, 26 percent of survey participants considered prices to be very high.
In terms of international perceptions of commercial property values, as reflected in the RICS Global Commercial Property Monitor, Switzerland topped the rankings in each of the last two quarters (Q2 and Q3 2016), far ahead of neighboring France, Germany, Austria and Italy. According to the survey, 90 percent of the real estate experts polled here consider Swiss real estate to be overpriced.
For the Switzerland Commercial Property Monitor, 500 individual RICS members in Switzerland were surveyed. Study participants expect both capital values (-0.6%) and rental income (-1.3%) for prime office properties to decline over the next twelve months. The averages for commercial properties are -3.4 and -3.5 percent.
Second-tier retail properties are rated the worst compared to all other sectors. Survey participants expect capital values (-7.5%) and rental income (-6.6%) to decline over the next twelve months.
Many respondents consider a decline in demand for rental space to be more likely than an increase in prices. According to the study participants, the supply of leasable space is rising sharply, with an increase of 45 percent. As a result, landlords are offering attractive special terms. (ah)
