31.12.2025Think in terms of needs rather than returns

“The city is a manager, investor, and builder all at once,” explains alumna Kristina Bussmann. Together with her team, she manages the entire real estate portfolio of the city of Bern. This includes administrative assets, i.e., buildings used for public purposes, as well as apartments and commercial properties in the financial assets. Unlike private real estate companies, the public sector does not think primarily in terms of returns, but rather in terms of needs. “We provide a service to the population,” says Bussmann. Accordingly, all transactions are public. This presents a number of challenges.

The Viererfeld/Mittelfeld project is a prime example of how many levels an urban construction project encompasses – from urban planning competitions and ecological requirements to referendums: a new urban district for around 3,000 people is being built in the north of Bern on an area of 190,000 square meters. The plan is to create a lively, green neighborhood with a large park, schools, and commercial space. But there is still a long way to go. Ten years have already passed since the rezoning, and construction of the buildings is scheduled to begin in 2030. With this project, the city wants to show how sustainable densification can work, despite rising construction costs, climate regulations, participatory procedures, and political processes. “In Bern, every individual plan requires a referendum, which alone usually takes a year,” explains Bussmann. Technical reviews and public requirements are therefore always accompanied by political debates that take time.

The mobility concept for the Viererfeld/Mittelfeld district is a good example of what this means in practice. It was decided early on that parking spaces in the district would be concentrated in three central underground garages. “That sounds simple, but it's highly political,” explains Bussmann. This is because opinions on how many parking spaces are needed and how they should be managed vary widely. Private developers want sufficient parking spaces, preferably their own, for tenants, customers, and employees, while the city insists on promoting cycling, a low number of car parking spaces, and no fixed allocation of parking spaces to tenants. Added to this are new developments such as cargo bikes, which require more space.

The Viererfeld/Mittelfeld is representative of many other development areas currently being planned in Bern. Such projects are complex, require patience, and demonstrate how challenging it is to pursue urban development under democratic conditions.

Unsurprisingly, conflicting goals are omnipresent in Bussmann's everyday life. The ongoing housing shortage is just one example of many. The city of Bern offers affordable apartments in its own housing stock with targeted rent caps. It also ensures that the apartments are fully occupied. For example, a 4½-room apartment should be occupied by a family, not a single person. Clear rental criteria apply to subsidized apartments. Those who no longer meet the occupancy or income limits pay a higher rent but are allowed to remain in the apartment. In this way, the city aims to maintain social cohesion while making optimal use of the available space. Where possible, it also buys properties from private individuals in order to remove them from speculation and keep them in the rental segment permanently. At the same time, the city is pursuing ambitious climate goals. When buildings are extensively renovated, high ecological standards apply, such as solar panels, timber construction, and district heating. This is costly, and rents cannot simply be increased. The city is consciously accepting lower returns, explains Bussmann. “Whether it can afford this in the long term remains to be seen. But at the moment, the ecological component is clearly the top priority.”

Digital real estate processes and AI could make procedures more efficient, but such projects quickly reach their limits in the public sector due to a lack of funds, complex procurement procedures, and long decision-making processes. “We're working step by step,” says Bussmann. More leeway for investments would be more important to her than any new tool. "Sometimes I wish I had more financial flexibility, but in the end, it's the right way to go. Democracy is part of our business model.“ Despite all the hurdles, Bussmann's conviction is palpable. The diverse tasks and interaction with people from all areas of urban life enrich her everyday life. ”What motivates me is the meaningfulness,“ she says. ”We design living spaces for people, not just for returns."

• Public real estate management combines economic, political, and social goals.
• Urban development is always a negotiation process between politics, planning, and the public.
• Urban construction projects often take many years, with political procedures and referendums significantly prolonging the planning process.
• Transparent decision-making processes and democratic control slow down planning, but make it legitimate and comprehensible.

Kristina Bussmann has been managing the approximately 540 employees of Immobilien Stadt Bern since 2021. She studied political science, economics, and law at the University of Bern and completed a Master of Advanced Studies in Real Estate (CUREM) at the University of Zurich. She previously worked for Wüest Partner and the City of Zug, among others, and has been with Immobilien Stadt Bern since 2014.

Text: Maura Wyler, photo: Caroline Krajcir, source: Oec. Mag. #24

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