The city of Zug is planning to build a 60-meter-high-rise

The city of Zug is planning a 60-meter-high tower at Theilerplatz that will include affordable housing and commercial space.

This development comes at a time when the city faces a significant housing shortage, especially for affordable units. The project is part of Zug’s broader initiative to provide more reasonably priced housing for its middle-class residents. By 2040, the city is projected to grow by 10,000 residents, which increases the demand for affordable housing.

Head of Finance Urs Raschle (left) and Mayor André Wicki inform interested parties and media representatives. 
Photo: Matthias Jurt (Zug, 24.09.2024).

In June 2023, the "2000 Affordable Apartments for the Zug Middle Class" initiative was approved. It mandates that 20% of all Zug apartments should be affordable by 2040. Currently, only 14% of the city's apartments meet this criterion, which underscores the urgency of the initiative. The city has a long way to go to meet these targets.

The proposed 19-story high-rise at Theilerplatz will cover a 7,240-square-meter site, including the old Landis & Gyr train station, which Zug will purchase for 65 million Swiss francs. Park Lane Zug AG, the seller of the property, gave a 20% price discount during negotiations. According to Urs Raschle, Zug’s finance director, the city is prioritizing affordable housing on the site. The city is working with housing cooperatives and non-profit developers to create the units, which will help meet its affordable housing goals.

At least 25% of the planned high-rise (about four floors) will be allocated for commercial use, with the rest devoted to residential space. A minimum of three floors will be reserved for affordable housing, but the city council aims to exceed this minimum. They view this project as an essential contribution to meeting the goals of the 2000 Apartments initiative.

The project is part of Zug's larger real estate strategy. The city plans to influence the design and public use of the area significantly. The building plan is expected to move through Zug’s city parliament and various commissions in fall 2024 before being finalized. If approved, the final decision will be brought before the public for a vote, due to the significant financial investment required. The acquisition of the property and its subsequent development represent a major step for Zug in addressing its affordable housing crisis.

Read the full article in German here