Zurich (awp/ats) – Building more remains the best recipe against the housing shortage, says Swiss Life boss Matthias Aellig. The slowness of building authorization procedures often delays projects, he notes.
“We continue to build and happily put housing on the market […] but we have to let it happen,” explains the director of the life insurer in an interview broadcast on Sunday by SonntagsZeitung. “Building permit procedures partially prevent or delay our projects.”
Swiss Life favors densification during renovations, which makes it possible to create additional housing, adds Mr. Aellig, who emphasizes that three quarters of tenants remain in their accommodation in the event of renovation.
The head of Swiss Life says he is skeptical of initiatives to prevent rent increases after renovations. “In Geneva, this had the effect of making the real estate stock obsolete.”
Generate income
Despite the housing shortage and rising rents, the insurance group feels primarily indebted to its customers, assures Mr. Aellig: “Our duty is to generate income in line with the market with our housing for our policyholders”, this is why the company invests in different housing segments and sizes.
Around 80% of Swiss Life’s real estate and construction projects are located in the Zurich metropolitan area, in that of Geneva and in the north-west of Switzerland, he estimates. “We are where the economic activity is and where the demand is greatest.”
Swiss Life is one of the largest private housing landlords. It has nearly 40,000 housing units.
