Zurich housing market: Pension funds drive apartment demolitions

In Zurich, a surge in apartment demolitions is being driven significantly by pension funds and investment foundations. In the first half of 2026, nearly 1,000 apartments were demolished in the city, a figure approaching the record highs seen in 2021. These institutions invest in the housing market to secure returns for pensioners, but the resulting redevelopment often leads to higher rents and the displacement of long-term residents, including elderly people and families.

In Küsnacht, a subsidiary of UBS, Turintra AG, issued eviction notices to over 50 tenants in two residential blocks to facilitate total renovations. Following a settlement with residents, some units are being offered as temporary sub-leases at significantly lower rates than previous levels until March 2027. While these temporary rents are low, the long-term trend in the region shows a shift toward higher-priced housing through redevelopment projects.