Review 81st Swiss Real Estate Conference: "New user behaviour, new real estate strategies".

"The Corona pandemic has changed many things in our daily lives, and the consequences for the real estate industry and the various asset classes are sometimes enormous. Moderator Prof. Markus Schmidiger from the Lucerne University of Applied Sciences and Arts put it in a nutshell at the beginning of the latest Swiss Real Estate Talk, which was held online for the first time. With the changed basic conditions based on government-imposed protection regulations, hygiene measures and lockdown regulations, the framework conditions for the hotel and gastronomy industry, for example, have been turned upside down. But the office, retail and residential segments are also feeling the effects of the ongoing pandemic, Schmidiger continued.

Office market in transition

For Jan Eckert, CEO of JLL Switzerland and the first speaker at the event, "a hybrid continuum" is emerging in the office property market as a result of Corona. On the one hand, the decision-making process for transactions and lettings is significantly more difficult in view of the difficulty in forecasting further economic developments. On the other hand, the real estate market is exceptionally robust in view of the current mood and the forecasts of market participants: In a survey initiated by JLL at the beginning of 2021, 42 percent of respondents said they expected more real estate acquisitions during the course of this year. The majority of 54 percent expect at least a similar purchase volume as in 2020, with only four percent of real estate players forecasting lower investment volumes for property purchases. The other side of the coin also gives reason for cautious optimism, according to Eckert. Only 14 percent assume that there will be more sales this year. 61 percent expect a similar level as last year and 24 percent expect fewer property sales over the year.

The demand for office space, on the other hand, presents a different picture. "There is still no discernible pattern here," said Eckert, summing up the situation. The "impact on demand for space" is undoubtedly there, but there are signs pointing in different directions. With regard to company and personnel developments, various trends would overlap. On the one hand, the home office issue will inevitably have an impact on the hours of presence in company offices, and on the other, office space must offer much more than just a desk and chair according to the "state of the art". Above all, in order to attract new and young talent, the company building would have to become a centre of attraction - with a wide variety of areas for individuality and team meetings, but also for personal training and the casual (knowledge and information) exchange among each other. "Taken together, this means a larger space requirement," says Eckert.

Mega topic in retail: mixed-use destinations

Marcel Stoffel from the Swiss Council of Shoppingplaces and owner of the retail consulting agency stoffelzurich was the second speaker to explain the precarious situation in the retail sector in many places. "The aging and rather boring shopping centers in particular must now transform themselves into attractive and interesting marketplaces," he put it somewhat exaggeratedly. In general, retail space in this segment will decline. But the problem is: "We can't cut the shopping centers in half. Solutions could be found in the form of alternative uses. Stoffel includes the areas of sports, fitness, yoga and wellness, but also medical or cosmetic service providers. "The mega-topic here is mixed-use destinations."

On the other hand, a certain degree of saturation has been reached when it comes to mixing the centers with gastronomy concepts, says Stoffel. "The current share of around eight to ten percent is probably the cap". He sees higher demand for prime locations in the city centers, even if there will also be some store closures there sooner or later. However, there are other and usually more flexible concepts ready to fill these gaps. His future thesis for the retail trade: "There are three decisive trends: diversity, flexibility and place making". In this context, the right positioning of business concepts and brand identity are the most important factors. Those who have a clear profile and clearly distinguish themselves from the competition will continue to be relevant. Customers must also be offered an experience. Or as Stoffel put it in other words: "Products are interchangeable, but emotions are not.

New requirements for future living spaces

Anja Meyer, CEO of the real estate company Smeyers, then reported on her experience in marketing practice in the Residential business segment. "The demand for residential space is unbroken. Decisive criteria in real estate development and marketing are proximity and distance. This already came up with the topic of densification years ago, but has now become even more accentuated with the pandemic," Meyer explained. In terms of home ownership, he said there has been increased pressure in the market over the past six to nine months, looking at supply and demand. "On the rental market side, the fourth quarter in 2020 and the current first quarter in 2021 showed much higher attrition." Say: Now many more people are looking for new and for the current needs suitable four walls than also already, according to Meyer. There are increased demands and new expectations of living space.

The factors of privacy, route and distance to the place of work, but also the type of public space have become more important. The availability of usable outdoor space has also become more important. Many now want coworking opportunities in the neighbourhood and also simply the café next door and a weekly market, if possible, right on the doorstep. The "green factor" also plays an important role, be it small gardens, balconies or the possibility of urban gardening in the neighbourhood. These topics and needs must also be addressed and served by project developers without delay. In the future, "much more user-oriented planning" will be required, said Meyer.

• You will find a detailed review of the event in the next issue of Schweizer Immobilienbrief and in the May issue of the trade magazine IMMOBILIEN Business.

• Presentation Marcel Stoffel (Swiss Council Community GmbH)
• Presentation Anja Meyer (smeyers AG)
• Presentation Jan Eckert (JLL)

Click here for the recording of the event.