Zurich’s city government plans to use an expected CHF 2.5 billion accounting gain from the revaluation of municipal properties to help keep rents affordable, without adding to the city’s debt.
The proposal, set out in the 2027 budget, would channel the gain into an “extraordinary housing package” aimed at securing affordable rents in city-owned and other non-profit housing, while supporting the city’s target of ensuring that one-third of housing is affordable.
Zurich says land and property prices have risen sharply and continue to climb, making it harder to keep rents affordable through conventional means.
The city council proposes three measures, all of which would go before voters.
- A further CHF 750 million injection into the existing housing fund, on top of CHF 50 million already budgeted, bringing the total new allocation to CHF 800 million. The money will be used for investment contributions to municipal and non-profit housing to keep costs low.
- A CHF 1.75 billion framework credit to speed up the transfer of properties from financial assets into administrative assets for non-profit housing, reducing the need for repeated referendums.
- A change to the municipal code allowing the city to grant building rights to private non-profit developers and foundations on favourable terms, keeping land costs low and rents affordable over the long term.
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The gain is not new cash. Zurich is required to revalue its properties every four years, and the city expects a CHF 2.5 billion revaluation gain in January 2027 because cantonal land values are being adjusted for the first time since 2009 and property prices continue to rise. The city stresses that the gain is purely a book entry.
Finance councillor Daniel Leupi said the package secures affordable housing without increasing debt, while housing delegate Philippe Koch said it ensures that the city’s active land policy continues to produce affordable homes.
It will increase Zurich’s balance-sheet value and equity base, but will not generate additional income or liquidity, and will not reduce the city’s rising debt.
The proposed measures would improve Zurich’s 2027 net result by CHF 1.75 billion, turning a previously budgeted deficit of CHF 407 million into a surplus of CHF 1.34 billion. The city says the budgeted cash flow remains unchanged at CHF 353.3 million.
The revaluation gain itself is still provisional. The final figure will only be known in spring 2027 and could differ from the CHF 2.5 billion currently assumed.
The new package is intended to build on an earlier housing package already included in the 2027 budget, which the city says keeps the one-third affordable-housing target realistic by 2050 without overburdening public finances.
The proposals will be submitted to Zurich’s city parliament and then put to voters, since they involve changes to the municipal code and a delegation of authority to the city council.
The outcome will depend partly on the final revaluation result, which is not expected until spring 2027.
For tenants, the practical promise is simple: more money and more land channelled into non-profit housing, with the aim of keeping rents down even as property values rise. For the city, it is a way to convert an accounting windfall into long-term housing policy without new borrowing.
