Vacant apartments are a rare commodity, especially in Swiss cities. This applies to rental apartments as well as condominiums. The high demand in the centers meets with a supply that is far too small.
The situation got even worse during the pandemic. Because the construction boom has cooled noticeably since Corona, confirms Ursina Kubli (41), real estate expert at Zürcher Kantonalbank (ZKB): “Contrary to expectations, the major real estate players have shown a high level of risk awareness.”
Construction investments are falling
The figures from the Federal Statistical Office confirm this: construction investments by private clients decreased by 1.2 percent in renovation projects in 2020 and by 1.3 percent in new construction projects. This does not apply to construction projects by public clients – i.e. the federal government, cantons and municipalities. According to the ZKB, the number of projected apartments in the building applications has decreased by as much as 23 percent since 2018.
“The sales of 2019, the last year before Corona, should no longer be achieved in residential construction,” says Matthias Engel (42), media spokesman for the Swiss Association of Builders (SBV). The construction industry has shown itself to be crisis-resistant during the pandemic, Engel said. Nevertheless, the SBV anticipates that construction activities in residential construction will decline slightly in the medium term.
A slowdown in construction activity is definitely desirable in certain regions. Because the building boom has led to ever higher vacancies in the past. According to the real estate expert at ZKB, there is less construction, especially in regions with high vacancy rates. For example in Aarau and Olten SO. “Lively construction activity with a high vacancy rate can only be observed in a few exceptions,” says Kubli.
The largest residential projects
It looks different in the centers. Some of the largest housing developments in Switzerland are being planned here. Over 3000 apartments are to be built in the ten largest residential projects that are currently in the pipeline. This is shown by the figures from ZKB, which are exclusively available to Blick.
The ten largest residential projects are major construction sites that have been approved since 2020. The catch: a building permit is by no means a guarantee for the implementation of such projects. Objections can delay or even prevent the start of construction. According to the ZKB, the regulatory hurdles are high in urban areas, which severely inhibits new construction activity.
Controversial overbuilding
A well-known example of this is the replacement building at Brunaupark in Zurich for the Credit Suisse pension fund. It is the largest residential project in German-speaking Switzerland. According to the building permit, the investment volume is around CHF 250 million.
The replacement building is particularly controversial because an existing housing estate with 240 apartments will have to be demolished. The permit for a total of almost 500 apartments was granted. In the meantime, however, it has become clear that this new replacement building cannot be implemented as planned.
Back and forth in Regensdorf
The large Stockenhof project in Regensdorf ZH was on the brink. The building application was initially fought by the local council. The problem: The BVK pension fund not only wants to build around 400 rental apartments, but also a care center with retirement and care apartments. According to the authorities, this is not zone-compliant and could create an oversupply of care places. In the meantime, the parties have found a deal – now they are building.
The groundbreaking ceremony has now taken place for the third largest Tivoli Garten development in Spreitenbach AG. But even this project started with a delay of years. It took over ten years before a building permit for the project was granted.
The tallest residential buildings in Switzerland
But not all projects are doomed to failure: There are better chances with the three high-rise buildings in Dübendorf ZH, which occupy second place among the largest new residential developments. The investment costs for the residential project amount to 436 million francs – including the land.
Construction of the development called “Three Point” has already started. It should be the tallest residential buildings in Switzerland. With 265 condominiums and 180 business apartments. All apartments have already been sold.