The Swiss office property market has rebounded from pandemic-era disruptions, supported by employment growth, limited new construction and tighter homeoffice policies. According to a study published Thursday by Raiffeisen, available office space has tightened, with asking rents recovering after years of weakness and newly listed properties being absorbed at a steady pace.
Raiffeisen Chief Economist Fredy Hasenmaile cautioned that the market now faces a new structural challenge: artificial intelligence. An analysis of roughly 600 occupations indicates that about two-thirds of office workers in Switzerland hold jobs highly exposed to AI integration, raising questions over whether the technology will augment or displace labor.
"The impact of homeoffice on office demand is now more predictable, but AI presents the next major structural shift," Hasenmaile said. While current employment data shows no broad-based reduction in office-based jobs, the effect varies by sector and role. Sectors such as finance, IT and public administration—where office concentration is highest—are most vulnerable to AI-driven efficiency gains.
Regional disparities are also evident. Major economic hubs, including Zug, Zurich and Geneva, face greater exposure due to their concentration of office-based industries. Raiffeisen projects a realistic scenario in which office demand declines by between 1.6% and 7.9% over the next five years, depending on AI adoption speed and labor market adjustments.
Owners and developers are advised to consider adaptive strategies, including repurposing or redesigning office spaces to align with evolving demand patterns.
