Overview

• The cabinet mandate requires municipalities to grant building permits within two months and allows exceptions to local zoning rules for new housing and conversions through 2030.
• The package extends the ban on converting rental units into condominiums by five years in tight markets to help curb rising rents.
• Federal planners estimate the reforms will cut 2.5 billion euros in administrative costs by speeding up approval procedures.
• Funding for social housing will rise from 6.7 billion euros in 2024 to 7.4 billion in 2025 and 7.6 billion in 2026, forming part of a 23.5 billion-euro commitment through 2029.
• Critics warn the measures lack mandatory affordability quotas and may benefit profit-driven developers, and experts urge land-price controls to address underlying cost drivers.