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In Zurich‘s Brahmsstrasse, UBS plans to construct a luxury replacement building, displacing numerous tenants with a CHF 3500 “accommodation” payment.
Key Points
- UBS has terminated all leases on brahmsstrasse, effective March 2027.
- The bank is offering a CHF 3500 payment per tenant as an “accommodation”.
- The redevelopment project aims to increase the number of apartments from 22 to 60, likely with higher rents.
UBS is set to radically transform Zurich’s Sihlfeld district. The plan involves demolishing two buildings containing 22 apartments on the Brahmsstrasse and replacing them with a new structure featuring 60 units.Notices have been issued, requiring all tenants to vacate by the end of March 2027.
Amidst Zurich’s challenging housing market,where such actions often spark protests,UBS is offering a lump sum of CHF 3500 to each affected tenant.
One anonymous neighbor described the payment as “hotte money,” while UBS refers to it as an “accommodation.” walter Fear of the Zurich Tenant Association considers the payment “exceptional,” at least in principle.
Similar tactics were reportedly used during the clearing of the Heuried settlement by Credit Suisse, now under UBS ownership, where tenants with long-term contracts were compensated for voluntary departures.
A chapter Closes
UBS has not provided specific details regarding the project, stating that it is focused on creating “enduring living space” and pursuing a “long -term investment strategy”. The bank anticipates that new rental rates will align with the “Middle local segment for new buildings”.
However, comparable UBS projects suggest that a 3.5-room apartment could exceed CHF 3,400 per month, a price point likely unaffordable for current tenants.
UBS cites densification and the creation of modern living spaces as justifications for the project. The financial institution has become a major real estate player in Switzerland, with a portfolio of 70,000 apartments, including approximately 6,500 in Zurich.
While UBS emphasizes sustainability and urban development, many tenants face displacement, albeit with a financial bonus. The adequacy of CHF 3500 to offset rising rents and neighborhood displacement remains questionable.
