Zurich pension fund residential redevelopment

Pension funds and investment foundations are driving a significant increase in apartment demolitions and residential redevelopment in Zurich. In the first half of 2026, nearly 1,000 apartments were demolished in the city, a figure nearing record highs from 2021.

While pension funds own approximately 10% of Zurich’s housing stock, they are responsible for 25% of all apartment demolitions since the start of the year, totaling 235 units. These projects typically involve replacing older buildings with new constructions that command significantly higher rents, sometimes more than double previous rates. This trend has raised concerns regarding the displacement of long-term residents, including families and the elderly.

Specific developments include the Brunaupark project in District 3 by the Credit Suisse Group Pension Fund. Despite court rulings halting the project due to concerns over green spaces and noise protection, the fund plans to submit a revised application to replace 1980s-era housing with a project that would double the number of available apartments. The BVK pension fund has also been identified as a leading entity in these demolition activities.