Bern is setting fire to older blocks of flats

Bern is proposing a mandatory refurbishment scheme for energy-inefficient buildings. Anyone currently owning a property with a GEAK rating of E, F or G would be required, depending on the rating, to achieve at least a building envelope rating of D within 10, 15 or 20 years. This will increase the financial burden on owners and the risk of higher rents for tenants.

The Federal Council approved the report on 2 September 2026, but has not yet drawn up any direct proposals for new or amended legislation based on it. Nevertheless, the mechanism has already been clearly outlined. The cantons would have to incorporate any such provision into their energy legislation, and the deadlines would only begin to run from the date this comes into force.

Under the preferred model, the obligation specifically targets the least energy-efficient building envelopes. Houses with a GEAK rating of G would have to be refurbished to at least D within 10 years, buildings with a GEAK rating of F within 15 years, and buildings with a GEAK rating of E within 20 years. The report describes this combined strategy of incentives and requirements as the best possible implementation concept, although, according to the report, the constitutional basis for implementation at federal level is currently lacking and coordinated implementation by the cantons is considered challenging.

Costs will initially affect the existing housing stock
The funding shortfall is a particularly pressing issue for the property sector. The implementation concept cited by SVIT Switzerland anticipates additional investment of around 1.4 billion Swiss francs per year, whilst the Confederation and the cantons have earmarked only around 90 million Swiss francs per year for increased support for ambitious comprehensive refurbishments. It is precisely this shortfall that turns a debate on energy policy into a rent issue, because owners would have to finance extensive refurbishments to the building envelope before negotiations can take place on returns, affordability and the impact on rents.

The pressure is concentrated on the older housing stock. There are around 3.1 million buildings in Switzerland, of which around two-thirds are residential. Around 60 per cent of the total energy-consuming floor area of residential buildings was constructed before 1980, and more than half of the building envelope elements have still not been renovated. From the federal government’s perspective, this is where the greatest potential for action lies, as space heating (70 per cent) and hot water (16 per cent) account for the bulk of energy consumption in residential and commercial buildings.

Funding remains politically uncertain
the Building Programme adds further urgency to the proposal. In March 2026, Parliament decided to continue the cantonal Building Programme, albeit on a reduced scale. The Federal Council report itself also states that the programme must be redesigned following the decision on ‘Relief Package 27’. It therefore remains unclear how any future obligation would be financially supported should Parliament and the cantons proceed with the proposal.

Industry warns of a wave of costs
SVIT Switzerland rejects the proposed mandatory refurbishment requirement for GEAK classes E, F and G and warns against placing the burden solely on property owners and tenants. The association also points out that, according to the report, around half of the buildings with an existing GEAK fall into the affected classes. The only positive aspect it highlights is that the Federal Council has abandoned the originally demanded 80 per cent target and has staggered the deadlines. The next point of contention is therefore less the target itself than the question of who will ultimately foot the bill for the refurbishment.