Covid-19: what impacts on the real estate sector ?

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Experts in the real estate sector seem to be unanimous: the consequences of the coronavirus on the real estate industry will vary considerably from one segment to another. However, overall, as a recent study conducted by Credit Suisse indicates, the Swiss real estate market will not collapse under the current crisis.

Nevertheless, the luxury housing segment is likely to lose some of its appeal, along with commercial space, office space and rental buildings, for which a temporary decline in demand is likely to be observed. As a result, renters are likely to be the big winners in 2020, with new rents falling by an estimated 1.5 to 2% this year.

According to the consultancy firm Wüest & Partner, transactions for investment properties will also decline, especially for commercial or craft properties, which are more vulnerable than residential properties with a lower risk and comparatively still more attractive because of low interest rates.