Lausanne plans to spend 200 million on property purchases

Lausanne is sticking to a policy of large-scale property purchases. The 2025 budget documents once again include a budget of 200 million Swiss francs for the right of first refusal for the period 2027 to 2031. Whilst this measure can help secure affordable housing stock, it does not, as a rule, create additional housing.

The figure of 200 million Swiss francs is politically contentious, but as of 9 September 2026, no decision has yet been taken. The report on the 2025 Lausanne budget debate includes a capital appropriation for 2027 to 2031 as a continuation of the 2021 to 2026 framework for the municipal right of first refusal. This therefore represents a provisional planning figure for the time being, not a formal appropriation decision.

It is precisely this distinction that is key. The city has been making consistent use of this instrument since it came into force in the canton of Vaud on 1 January 2020, in order to transfer existing properties into the social housing stock. Between February 2020 and the end of February 2023, Lausanne exercised its right of pre-emption on eleven occasions. This involved twelve plots of land with existing rental or mixed-use buildings, totalling just over 93 million Swiss francs. At the time, the city expected to be able to recognise 195 flats as social housing.

Securing the existing stock, but barely increasing supply
This is precisely where the dividing line in housing policy lies. The right of first refusal under the LPPPL is intended to help local authorities secure affordable housing and create social housing. However, in 2023 the canton itself noted that most cases to date had concerned existing buildings and had therefore not resulted in any new flats being built. For the market, this makes a significant difference. The owner changes, but supply does not increase.

For investors, owners and developers, this shifts the debate. Lausanne is strengthening its non-profit housing stock through purchases, but the issue of expanding supply remains separate from this. The instrument is no substitute for densification or planning permission. Ultimately, anyone wishing to alleviate the shortage needs more living space on the market, not just changes to ownership structures in the land register.

The canton has tightened the rules
The Vaud Cantonal Government clarified the rules in November 2023. Municipalities must provide the necessary funds themselves and become the owners of the property before it can subsequently be transferred to third parties. Furthermore, any pre-emptive rights exercised must be reported to the canton. The scope of application was thus narrowed, even though the basic instrument remained in place.

A subsequent move demonstrated how Lausanne is reorganising its secured portfolio. In July 2025, the city announced that it would transfer seven properties acquired through the right of first refusal, under building lease, to cooperatives and a city-owned company. Half of the proceeds of over 50 million Swiss francs are to be channelled back into the acquisition fund, whilst the other half is to be used for energy-efficiency refurbishments of the municipal housing stock. This strengthens the long-term public benefit, but does not address the actual issue of supply. It is precisely for this reason that the possible new framework for 2027 to 2031 is likely to further intensify the debate over acquisition policy and new-build projects in Lausanne.