| Ramzi Chamat
Geneva's real estate market is one of Switzerland's most dynamic and constantly evolving sectors. In the second quarter of 2023, this market recorded significant developments, offering interesting opportunities for investors and businesses alike. This article explores in detail the trends, key figures and outlook for the Geneva real estate market in Q2 2023.
At the beginning of the year, the Geneva market had been marked by a supply rate of 6.7%. However, in the second quarter, this figure experienced a notable reduction, reaching 6.1%. This decrease in the supply rate indicates a gradual stabilization of the local real estate market, offering investors a more favorable outlook.
After several quarters of rent pressure, "prime" rent has finally recorded a significant increase, reaching CHF 875.-/m²/year. This rise is welcomed by property owners and investors, ending a period of historically low rates.
Demand for well-located offices in downtown Geneva remains robust. The Central Business District (CBD) on the left bank has a vacancy rate of only 3.2%, equivalent to 20,400 m² of available office space. However, the scarcity of large contiguous areas over 1,000 m² and floorplates over 250 m² presents a challenge for companies seeking spacious spaces.
The Praille/Acacias/Lancy sector has delivered outstanding performance, recording a supply rate of only 4.4% in the second quarter. This peripheral area has recently seen a substantial increase in its supply with the delivery of the Alto and Esplanade 3 projects, making it an attractive area for investors.
The airport zone has also been dynamic, with several significant transactions in the new Étang neighborhood during Q2. The supply rate has thus been reduced from 19.4% in Q1 to 17.7% in Q2.
The Plan-les-Ouates area has followed the downward trend, displaying a supply rate of 7.8% in Q2, compared to 9.1% in the previous quarter.
In the second quarter of 2023, the key statistics for the Geneva real estate market are as follows:
These data indicate an overall improvement in market stability, with a decrease in the supply rate and an increase in "prime" rents.
The Geneva real estate market in the second quarter of 2023 shows signs of recovery after a period of tension. Investors and companies looking to establish themselves in the region should closely monitor these promising trends to make informed decisions. The ongoing demand for spaces in the city center and positive developments in peripheral areas offer interesting opportunities for market participants.
The Geneva real estate market is constantly evolving, and the second quarter of 2023 presents an opportunity for investors to capitalize on these positive trends. The decrease in the supply rate and the increase in "prime" rents are encouraging indicators for the future of this dynamic real estate market.
