The Wrong Approach to Addressing the Housing Crisis
The Federal Council wants to impose stricter restrictions on real estate purchases by foreign nationals. The goal sounds reasonable. Reducing foreign demand is intended to ease pressure on the housing market. However, the planned revision of the Lex Koller law risks missing the mark on the core problem. It will not create a single new apartment, may hinder investment, and will affect, of all people, the very market players who finance housing and infrastructure.
According to the explanatory report, the federal government’s regulatory impact assessment concludes that the effect on prices and housing supply would be negligible. The number of transactions affected is small. At the same time, restrictions could further slow investment in housing projects and thus reduce supply.
Switzerland needs housing to become available more quickly in regions experiencing rapid growth. However, more permitting requirements, uncertainty, and capital barriers do not resolve planning bottlenecks, objections, or the shortage of skilled workers. Above all, they increase complexity.
Stock Exchange Under Scrutiny
The planned intervention has particularly far-reaching implications for publicly traded real estate companies, funds, and real estate SICAVs. Stock exchange participants would be required to verify, prior to certain transactions, whether buyers are subject to approval requirements under the Lex Koller. Companies whose assets consist of more than one-third Swiss real estate, based on market value, would also be affected.
The Zurich Chamber of Commerce warns of disproportionate burdens and potential delistings. This would be particularly relevant for Zurich as a financial center. Banks, securities firms, fund providers, and real estate companies would have to establish new verification processes without this resulting in additional housing.
The Airport Is Also in the Spotlight
The ZHK cites Flughafen Zürich AG as an example. Because Swiss real estate accounts for a large portion of its assets, transactions involving its shares could also be subject to the proposed due diligence requirement. This would not only create bureaucracy but could also make it more difficult to raise capital for infrastructure and flight operations.
This is precisely where the scope of the draft becomes apparent. The Lex Koller would no longer be merely a tool for limiting foreign real estate acquisitions. It would deeply interfere with capital market processes and the financing of major infrastructure projects.
The political debate continues
At the same time, the Aeschi motion calls for largely reversing the deregulation of the past four decades and rolling back the rules to their 1985 status. The National Council’s Economic Affairs Committee recommended adopting the core of the motion by a vote of 14 to 8, with one abstention. The Federal Council rejects the motion, citing international obligations it has since entered into.
The debate touches on a legitimate issue concerning land, property, and affordable housing. However, an effective solution lies in increasing supply. Faster procedures, reliable regulatory frameworks, and more housing construction will alleviate the pressure. A stock exchange review of fund shares will not do the trick.