Swiss housing crisis sparks crackdown on foreign property ownership

Against the backdrop of a worsening housing crisis, the National Council has approved an SVP motion that will make it harder for internationals to buy property in Switzerland. 

Proposal brings back “Lex Koller” rules in Switzerland

Put forward by SVP parliamentary group leader Thomas Aeschi, the proposal seeks to reintroduce stricter rules on international ownership of investments in the Swiss property market. 

The motion calls for a return to the “Lex Koller” law of 1985, originally known as Lex Friedrich, which would mean that internationals would need approval to buy commercial property and invest in publicly listed real estate companies and funds, reports Blick.

The National Council approved the proposal by 123 votes to 54, with 17 abstentions, with the motion’s success attributed by Blick to “an unusual alliance of the Social Democrats, the Greens and parts of the SVP.” The FDP, Centre Party and GLP largely opposed the idea.

Swiss housing crisis driving up prices

SP National Councillor Jacqueline Badran threw her support behind the motion, explaining that “the Swiss real estate market is the most attractive real estate market in the world. Everyone wants to be here.” This can pose a problem when “there is a shortage of land” and a dropping national vacancy rate, causing house and land prices to “explode”, reports Watson. 

A return to the 1985 restrictions on foreign property investment will help resolve the “excessively speculative land purchases in Switzerland by international capital,” added Badran.

Not everyone was in agreement, however, with National Councillor Sidney Kamerzin (Centre) asking: “Do you really believe that a ban on the sale of holiday apartments and chalets in Valais, Ticino, Graubünden and Bern will improve the situation in the cities? The answer is, of course, no.”

The amendment is not yet final and still needs to be passed in the Council of States, where the “hurdles [...] are likely to be considerably higher” with a FDP and Centre Party majority.