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Demand for office space set to rise in long term – Credit Suisse

ZURICH, Dec 8 (Reuters) – Demand for office space is set to rise in the long term as the trend toward digitalising work offsets the pandemic-triggered impact of more people working from home, a study by Swiss bank Credit Suisse (CSGN.S) found.

Its analysis of the Swiss office property market showed supply was outstripping demand during the coronavirus pandemic. The home working trend “is likely to cast its shadow over the office property market for several more quarters,” it said.

But prospects are more upbeat in the long run, it said, based on a study the Swiss government commissioned on what is likely to happen by 2060.

The average proportion of workers in Switzerland carrying out office-based activities rose from 34% to 45% between 2000 and 2019, and should reach 60% by 2060, the study found.

“Over time, this effect should offset the decline in demand caused by home working, resulting in a significant increase in demand for office space in the long term,” it said.Reporting by Michael Shields; Editing by Angus MacSwan

Our Standards: The Thomson Reuters Trust Principles.

This article was originally published by Reuters.

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