LONDON, March 10 (Reuters) - Swiss office vacancies could rise for the first time in three years in 2009 as an expected surge in financial sector job losses squeezes demand for business space, a report from Credit Suisse showed.
Economists at the bank said the Swiss commercial property sector -- broadly seen as one of Europe's most resilient real estate markets -- would feel the effects of a cooling economy this year as up to 18,000 layoffs and a rise in office supply threatened to put rental growth into reverse.
The average office vacancy rate in Geneva and Zurich was 2.2 percent in 2008, compared to 5 percent in London, 6 percent in Paris, 7 percent in Barcelona and 13 percent in Frankfurt, Credit Suisse said.
"The prospect of substantial job reductions coupled with the end of the consumer boom will bring about a slump in demand," the report showed.
"Although (we are) not expecting office users to downsize their floorspace drastically, only very few companies are now planning to expand their office accommodation."
In contrast, Credit Suisse said the Swiss housing market would remain relatively stable in 2009 compared to debt-drenched markets in Britain and Spain.
According to the report, a continued spurt of immigration into Switzerland was likely to prevent any sharp fall-off in residential property demand.
"Thanks to unexpectedly high immigration, the residential property market has not yet seen the sort of supply overhang that typifies the late stages of the house-building cycle," Credit Suisse said, adding that population growth is estimated to reach an above-average 1 percent in 2009. (Reporting by Sinead Cruise; Editing by Rupert Winchester)
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