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Sign InThe Swiss Federal Council is proposing a significant tightening of the 'Lex Koller' law to restrict real estate ownership by non-EU/EFTA nationals. Under the new plan, foreign residents will be required to obtain authorization to purchase primary residences and must resell their property within two years if they relocate from Switzerland. Additionally, the government aims to limit foreign acquisition of commercial properties intended solely for rental investment purposes to combat housing shortages. These measures are a direct response to political pressure regarding population growth and the 'No 10 Million Switzerland' initiative. Analysts suggest that these restrictions could reduce liquidity in the Swiss property market and negatively impact the valuations of Swiss Real Estate Investment Trusts (SREITs). The move reflects a broader shift toward prioritizing domestic housing needs over foreign investment capital.