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As part of this year's panel discussion on January 17 at The Swiss Property Fair in Zurich, Dr. Juerg Syz, Partner at Asia Green Real Estate together with Dr. Stephan Kloess, Owner of KRE KloessRealEstate and Dr. Rainer Suter, Co-Head of Core Funds at AXA Investment Managers discussed how changes in work practices and consumer behavior pose new challenges for the real estate industry.

There are numerous distinctions among the global real estate markets, but there are also similarities. Across sectors such as office, retail, industrial, multifamily, and hotels, there is a universal decline in investment volumes, as potential buyers and sellers have different expectations. Currently, we are experiencing a situation with few transactions happening, similar to the initial stages of the Covid-19 pandemic. But while volumes recovered swiftly in 2020, there is currently still little evidence of a normalization of the market.

It's however not only price expectations that are relevant, but also tenants' requirements that have changed in terms of space and specifications. It's intriguing to observe how this factor differs among various regions particularly regarding the evolving demands in the office segment.

What can be observed across all regions is the importance of central locations. Centrally located properties consistently experience high occupancy rates, while properties located further away may encounter challenges in securing tenants and, at times, remain vacant for longer.

Besides the location the amenities increasingly gain on relevance. Modern facilities like cafeterias, showers, and lockers for individuals commuting to the office by bike are now considered essential elements.

The emphasis on flexibility should be part of sustainability, considering that buildings are constructed to serve for many decades and the office usage is likely to evolve over time.

Overall, the office landscape shows a mixed picture both in terms of space requirements per capita and affinity to working from home. In Asia, there is a noticeable return to the office, in US and EMEA however, employees tend to prefer working at least partly from home. In the long term, global growth in the office sector remains pivotal. Over the past 20 years, global office-using employment has more than doubled, with a growing emphasis on central locations, quality, and flexibility.