Swiss Council moves to bar foreigners from buying real-estate fund shares, risking price drops
The Swiss Federal Council plans to tighten the Lex Koller law, prohibiting foreign persons from acquiring stakes in real-estate funds or companies, which could push fund prices lower.
Under the leadership of Beat Jans, the Bundesrat intends to amend the Lex Koller regulations so that non-Swiss investors can no longer purchase shares in property funds or related firms. Officials warn that the restriction may trigger an outflow of foreign capital, putting short-term pressure on the market value of real-estate securities. Swiss investors could face falling prices and higher management fees as a result.
Why it matters
Restricting foreign buyers could lower fund values and raise costs for Swiss investors, affecting the broader housing market.
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