Zurich is known as the banking capital of Europe and several of the world’s leading financial institutions have their headquarters in the Swiss city. This combined with a thriving economy, strong currency and natural beauty attracts a host of entrepreneurs, start-ups and corporate offices to the city.
It is important to take into account that Zurich is a compact city with limited space for new building development and older areas of the city are also protected under heritage legislation. This combined with the high demand for office space creates a unique problem; although there is a need for more office space, there are only a few new developments underway.
This problem is less prevalent in the suburbs surrounding Zurich city centre, with areas like Kloten (where Zurich airport is located) experiencing a boom in property development, especially for industrial and commercial use. Another factor that attracts companies to the outskirts of Zurich is the lower cost. Zurich city centre is one of the most expensive areas in Europe, rivalled only by its fellow Swiss city, Geneve.
Property development forecast for 2020 and beyond
Zurich is experiencing a shortage of rentable office space and measures to rectify this is well underway. Although there are only a few limited developments in the Zurich city centre, more developments are underway in the areas surrounding the city.
Office space for smaller companies are especially in demand and property developers are responding by constructing premium office space for this purpose. It is estimated that an additional 6% office space will be available for occupation by mid-2020. This will ease the market and provide some relief in terms of rent prices in the Zurich area.
Zurich is a prime location for any office and company and this trend is set to continue for the foreseeable future. Additional office buildings are being constructed and will be ready for use in 2020 and beyond, which means that it may become easier for entrepreneurs to find the space that they need to conduct their business.