Federal government adjusts cost limits for housing subsidies
On 1 February 2025, the revised ordinance of the Federal Office for Housing (BWO) will come into force, setting new cost limits and loan amounts for rental and owner-occupied properties. This takes into account the increased land and construction costs and improves the funding opportunities for non-profit projects in mountain areas.
The revision responds in particular to the high construction and transport costs in Alpine regions. Non-profit property developers in mountain regions now receive targeted subsidies, as it has been shown that the costs of building materials in these regions are significantly higher than in valley and midland areas.
Increase in cost limits for affordable housing
The cost limits for the construction, renovation and acquisition of housing were last adjusted in 2022. Since then, land and construction prices have continued to rise, making the new values necessary. This adjustment ensures that affordable housing continues to be subsidised and maintained.
- Rental flats average increase of 5.3 %
- Owner-occupied flats and detached houses Increase of between 4.0 % and 6.7 % depending on property type
Promotion via guarantees and loans
The federal government continues to promote housing indirectly, mainly via guarantees and the Fonds de roulement. The latter is managed by the umbrella organisations Housing Switzerland and Housing Cooperatives Switzerland and provides low-interest loans to non-profit property developers.
Broad approval for the amendment to the ordinance
The proposed amendment was submitted to the cantons and umbrella organisations for comment – all parties involved were in favour of the amendments. The new ordinance thus creates the basis for continuing to provide affordable housing even in times of rising construction costs.