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Housing shortages in cities are driving the middle class into the countryside. Middle-income households can now barely afford a city flat. They are looking for a place to stay, where the rents are still affordable and further and further away from the city centre. Handelszeitung spoke with Astrid Heymann, Director of the Zurich Real Estate City, about the high-rise building boom. And how to find affordable real estate.
The real estate market in the city of Zurich is very attractive to female investors, with the highest prices for construction sites. To what extent does this magnetic effect make it difficult for 30 percent of apartments to meet the municipal nonprofit target?
Astrid Hayman: Real Estate City of Zurich is very active in the real estate market. Despite the high prices, we always come across affordable properties as we are well connected and reliable. But also because we can pay reasonable prices. However, it is not only our goods that contribute to the third purpose, but also the goods of building cooperatives and municipal foundations.
As has just been stated: In the future, approximately one-third of the population should benefit from non-profit and rental housing. As a result, is there a risk that some of the middle class will pay more for housing on the open market?
I can’t see this link. In addition, many properties are still owned by private owners who, like us, generally have a fair rental practice. We feel that in those who sell us their property. They want their tenants to be in safe hands.
Traditional shops on Bahnhofstrasse are closing, international chains are spreading. Are retail outlets in the city of Zurich still attractive?
I can’t speak for Bahnhofstrasse because we don’t rent any outlets there. But on the other side of the Limmat, in Niederdorf and Oberdorf, our commercial space is still in demand. We felt this last time we rented a property in Torgasse and received many good applications in a short time. This is of course also due to our low rents. It looks different on the outside. A rental can be difficult.
And has the boom in work from home hurt Zurich as an office location? Can such facilities be easily rented?
Fortunately, we also had no issues worth mentioning when it comes to office space. We are in close contact with tenants and act long-term. We have just been able to rent a large area in the “Airgate” office building in Zurich-Seebach, which we bought in 2015. The Zurich location is still in demand.
More than half a million people are expected to live in Zurich by 2040 – an increase in St. It corresponds to the population of the city of Gallen. Where will all these newcomers find an apartment?
This is a question for our colleagues in urban development. But Immobilien Stadt Zürich makes a contribution. With additional living space in annex and replacement buildings. For example, 126 flats will be occupied in the Eichrain housing estate this month. About 1,200 more will be added over the next decade. It should be noted that the minimum occupancy rates of our apartments. The space consumption of our tenants is low.
Noise protection and other requirements make residential construction difficult – 1,000 projects for new apartments have been blocked due to objections, according to Credit Suisse. Should regulations be relaxed to build more apartments?
This is a political issue currently being discussed in Bern. The fact that the well-established “Zurich practice” can no longer be maintained after a relevant decision by the Federal Court also limits our residential construction projects – but something seems to be going on here. (Editor’s note: Zurich practice: If the maximum allowable noise values are observed in at least one window (suitable for ventilation), not in the entire noise-sensitive room.)
High-rise buildings are again in demand in Zurich and other major cities. How important are such buildings to urban development – and why do they evoke so much resistance?
Tall buildings have been part of the Zurich cityscape since the 1970s. This story continues, I have no doubt about it. Tall buildings are a kind of concentration and contribute to the housing supply in the city of Zurich – again in the affordable segment. Immobilien Stadt Zürich owns two important high-rise housing estates and, with years of experience, knows its advantages and disadvantages – such as a more anonymous life. Tall buildings also arouse resistance, as they set new standards in a neighborhood and, in the worst case, represent a symbol of power.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
