Hybrid working threat to city real estate

Hybrid working practices, invoked after Covid lockdowns sent millions of office staff home to work, could erase as much as $1.3 trillion off the value of real estate in nine major cities by 2030

ESTIMATED DECLINE IN OFFICE SPACE DEMAND BY 2030 (%)


San Francisco
New York
London
Munich
Houston
Paris
Beijing
Tokyo
Shanghai
1
2
3
4
5
6
7
8
9
8
7
9


$800bn-$1.3tn could be wiped off value of office buildings


RETURN-TO-OFFICE RATES (%)
58
24
18
79
75
48
Asia-Pacific
Europe
Americas

-22.4
-17.6
-14.9
-10.5
-9.5
-8.2
-7.8
-7.4
-5.9

100
75
50
25
0
2021
2022
2023


5
2
1
6
3
4


Sources: Bloomberg, McKinsey Global Institute
Picture: Thirdman (Pexels)
Note: Figures are compared to pre-Covid levels