Affordable housing is becoming scarcer in many regions of Switzerland. Families, young adults, and older adults are particularly affected by high market rents and a limited supply of housing. Now, Mobiliar—which sees itself as a cooperative-based company—wants to help address this challenge by making its own commitment to nonprofit housing construction.
In the coming years, Mobiliar plans to build up to 1,000 nonprofit apartments throughout Switzerland. To this end, it intends to invest up to 200 million Swiss francs of its own capital. This amount does not represent the total investment or construction costs of the future projects, but rather the planned equity contribution. Depending on the project, additional funds are likely to be raised through debt financing or other sources of funding.
The apartments are to be rented out based on the cost-based rent principle. The rent covers the actual expenses for construction, financing, operation, and maintenance. A profit-oriented return is not intended. This can help decouple rents from the profit-driven pressures of the free market in the long term. However, the specific level of initial rents will continue to depend on factors such as land prices, location, construction costs, and financing.
New Company as the Foundation
Mobiliar has founded Dedicasa AG for this new initiative. The company pursues a charitable purpose and is intended to serve as the sponsoring entity for the construction of affordable housing. Swiss Mobiliar Asset Management AG is responsible for operational implementation. It will develop suitable projects on behalf of Dedicasa and manage the resulting apartments.
In this way, Mobiliar combines its social commitment with its existing real estate expertise. Stefan Mäder, Chairman of the Board of Directors, attributes this move to the company’s cooperative tradition. He notes that community and Switzerland’s long-term viability are integral to the company’s identity. The focus is on securing affordable housing over the long term and creating sustainable social value.
The search for and evaluation of suitable projects is already underway. However, implementation is to take place in stages. Specific construction projects, locations, partnerships, or initial move-in dates have not yet been announced. The initiative should therefore be viewed, for the time being, as the strategic development of a new nonprofit housing construction activity.
A Complement to Public Housing Construction
This commitment is also noteworthy because Mobiliar, a major private insurance group, is entering a field that in Switzerland has thus far been dominated primarily by housing cooperatives, foundations, and cities and municipalities. While public owners such as the City of Zurich expand their housing stock and land reserves by purchasing properties, Mobiliar is providing private equity capital for a new, nonprofit organization.
