Scandinavia & Switzerland: Value slump on the way

Despite the contraction in economic activity in Q1, property values in Scandinavia and Switzerland held broadly steady. However, in a large part this reflected uncertainty and low deal flow, which meant that it was not possible for agents to provide a robust assessment of values. Other indicators suggest that investment activity look a hit and occupier demand fell sharply. As such, we think that declines in values will become widespread in Q2. Looking ahead, even though lockdowns are being loosened we expect the economic recovery to be slow and uncertainty to remain high, which will delay the recovery in property values.