Geneva's Housing Crisis: Navigating Shortages and Seeking Solutions

Geneva is grappling with an increasingly severe housing crisis. With demand far outstripping the available supply, the shortage of housing in the canton has become a major concern for residents, local authorities, and real estate experts alike. Every year, Geneva falls short by 7,000 to 10,000 new housing units needed to meet the needs of its population. While the situation is complex, it is not insurmountable. A series of proposed measures and potential solutions are being considered to tackle this ongoing crisis.

A Strategic Plan to Address the Urgency

In response to the critical situation, a strategic action plan was recently discussed by representatives from cantons, cities, and the construction and real estate sectors. Federal Councilor Guy Parmelin presented a catalog of 30 measures aimed at easing the regulatory framework for housing construction. This action plan focuses on several key areas, including simplifying construction procedures, improving urban planning, and combating frivolous objections that delay building projects.

The discussions surrounding this plan were marked by constructive criticism, but there seems to be a consensus: urgent action is needed. However, as noted by Jean-François Steiert, the State Councilor of Fribourg, the implementation of these measures must be cautious to avoid an excess of regulations, which could further complicate the construction process. Simplifying rules while ensuring the protection of tenants, property owners, and investors is crucial for a smoothly functioning real estate market.

Innovative Architectural and Urban Solutions

Among the potential solutions to increase Geneva’s housing supply, building higher structures stands out. Constructing taller buildings in already urbanized areas, such as the Praille-Acacias-Vernets (PAV) district, would increase the number of available housing units while providing high-quality public spaces, including green areas. This urban densification would address the need to house more people within a limited space.

Another significant approach could be converting existing buildings. Some experts propose repurposing vacant office spaces into residential units. Currently, the total area of unoccupied office spaces in Geneva has doubled in the past year, reaching nearly 315,000 m². Transforming these spaces into housing could help alleviate the shortage. However, this solution is not without its challenges: commercial buildings are not always suitable for residential conversion due to architectural constraints or high renovation costs.

Legal and Economic Hurdles

Legal rigidities present another major obstacle to resolving Geneva's housing crisis. Current zoning laws limit the construction of housing in certain areas, such as industrial zones or noise-sensitive areas. Additionally, Switzerland’s Lex Koller, which restricts foreign nationals from purchasing real estate, further complicates the transformation of commercial spaces into housing.

From an economic standpoint, property owners are often hesitant to invest in converting office spaces into housing due to the high costs and financial risks involved. The residual value of commercial buildings is often difficult to absorb into a conversion project, making these operations less attractive than constructing new buildings.

The Need for Political Will

Despite these challenges, recent initiatives have shown that quick solutions are possible when there is political will. For instance, the conversion of 600 administrative offices into temporary housing to accommodate Ukrainian refugees demonstrated that swift action can be taken when needed. This responsiveness must now be extended to a broader and more sustainable strategy to address the housing crisis.

Conclusion

Geneva's housing situation presents a significant challenge, but it is not an insurmountable one. A combination of political will, architectural innovation, and legal reform will be required to resolve this crisis. Measures such as urban densification, repurposing existing buildings, and simplifying construction procedures offer promising pathways. However, to be effective, these solutions must be implemented in a coordinated manner that is tailored to the local context.

Created At: 08/08/2024