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Over 44,000 People in Switzerland Have Used the
Swiss Property Owners Association to Achieve Better
Results in Buying or Selling Their Home

Find out what real clients have to say

Over 44,000 People in Switzerland Have Used the Swiss Property Owners Association to Achieve Better Results in Buying or Selling Their Home

What is the Lex Koller – a brief explanation

The Lex Koller, officially the Federal Act on the Acquisition of Real Estate by Persons Abroad (BewG), has, since the 1980s, restricted who is permitted to acquire real estate in Switzerland. In principle, ‘persons abroad’ require a cantonal authorisation to purchase residential property. Propertyowner.ch has already reported on this: Lex Koller – a strict reputation, a relaxed reality.
Anyone who is lawfully resident in Switzerland and holds a valid residence permit is currently not generally regarded as a “person abroad” and may purchase a main residence without requiring authorisation – regardless of their nationality. It is precisely this point that the planned tightening of the law addresses.

An overview of the key planned changes:

New permit requirement for third-country nationals without a settlement permit: This is the change with the greatest implications for foreign nationals living in Switzerland. Third-country nationals – that is, people from countries outside the EU/EFTA – without a permanent residence permit (C permit) will once again require authorisation to purchase a main residence. This permit requirement for third-country nationals residing in Switzerland had previously been abolished; the bill provides for its reintroduction. Citizens of EU and EFTA states are not affected by this tightening of the rules, as the Agreement on the Free Movement of Persons applies to them. People with a C settlement permit – regardless of their nationality – will also remain exempt.

Ban on listed residential property: In future, people living abroad will not be permitted to acquire either shares in listed residential property companies or regularly traded units in property funds. Until now, foreign investors have been able to gain access to the Swiss residential property market via the stock exchange without being subject to the existing Lex Koller regulations. This loophole is to be closed.

Commercial property exempt from authorisation only for own business use: Purchases of commercial property by persons residing abroad will only be exempt from the authorisation requirement if the property is used for their own business. Purely financial investments would therefore now require authorisation.

Halving of holiday home quotas: The quotas within which non-residents may purchase holiday homes are to be halved.

Relief for staff accommodation in hotels: As a counterbalance to the tighter restrictions, the bill implements a motion by Council of States member Martin Schmid (FDP/GR): hotels owned by persons resident abroad are to be able to build or acquire staff accommodation more easily. In future, these will be regarded as part of the business premises and will therefore be exempt from the Lex Koller – a measure to help tackle the shortage of skilled workers in tourist regions.

What is the status of the political process – and when could the stricter measures come into force?

The consultation on the revision ran from 15 April to 15 July 2026. During this phase, cantons, political parties, associations and other interested parties were able to submit their official comments. The feedback was wide-ranging: practically the entire spectrum was represented, from clear approval to sharp criticism from business associations and parts of the property sector.

Next, the relevant department will evaluate the comments received. On this basis, the Federal Council will decide how to proceed with the bill and will subsequently adopt a dispatch for Parliament. The National Council and the Council of States will then debate the bill, usually in several readings with the resolution of differences, before a final vote takes place. An optional referendum may be called against the adopted law; should this happen, the electorate will decide at the ballot box.

There is currently no specific date for the law to come into force – nor can there be at this stage, given the ongoing procedure. Experience shows that such controversial legislative amendments take several years from the consultation phase to their final entry into force, particularly if differences of opinion or a referendum are to be expected in Parliament. Until then, the current Lex Koller will continue to apply unchanged.

What does this mean for you as a property owner?

For the time being, nothing is changing from a legal perspective. Anyone who currently owns, wishes to sell or purchase residential property can continue to follow the provisions of the current Lex Koller.

The Swiss Property Owners’ Association is monitoring the ongoing legislative process and will provide updates on propertyowner.ch as soon as the Federal Council adopts its message to Parliament or there are further decisive procedural steps.

Sources
– cash.ch (Ringier Media Switzerland, AWP agency): ‘Tighter Lex Koller polarises politics and business’, 15 July 2026
https://www.cash.ch/news/top-news/verscharfte-lex-koller-polarisiert-politik-und-wirtschaft-953201

– GMX.CH News (sda news agency): “Federal Council’s plans for the Lex Koller are causing divisions”, updated on 15 July 2026
https://www.gmx.ch/magazine/schweiz/bundesratsplaene-lex-koller-sorgen-frontenbildung-42505960

Definition:

The real value of a property is based on a simple assumption: a buyer today will only pay as much for a property as they would have to pay for the purchase of the building plot and the construction of the building. Accordingly, two elements are crucial: the land value and the current market value of the building.

When is the real value method used?

The real value method (commonly referred to as the asset value or net asset value method) is used for properties where there are few comparable properties and where the value is not determined by rental income. This therefore applies to owner-occupied properties which are, however, so unique in nature that there are hardly any comparable properties available. The real value method is also suitable for so-called ‘collector’s items’ with many distinctive features.
Examples include a rustico in Ticino, a remote, converted farmhouse in the Alps or a flat in a listed castle.

How is the real value calculated?

To calculate the real value, experts use the following formula:

New-build costs + land value – depreciation due to age = real value

The individual components of the formula are calculated as follows:

New-build costs
Firstly, the cost of constructing the same building from scratch is calculated. The construction costs for the building are determined by applying a reference price per cubic metre of volume. In most cases, the reference price is derived from the Building Cost Plan (BKP), which was developed by the Swiss Central Office for Building Rationalisation (CRB). In addition to the price per cubic metre for the building itself, ancillary construction costs (including planning and design costs, site development costs, financing costs, and administrative and processing costs) and the costs of site works must also be taken into account.
Land value
When using the real value method, the value of the building plot is usually determined using statistical data per square metre from price comparison services such as Wüest Partner, IAZI or Pricehubble. It should be noted, however, that these values are relative, as they do not take into account the specific usability of the plot.In addition, the land value must take into account the demolition costs for the existing building.To value building land, experts recommend the residual value method, which is also used by the Swiss Landowners’ Association.
Age -related depreciation: Age-related depreciation is calculated by first determining the refurbishment cycle of each part of the building, i.e. the average time span until complete renewal. The technical age of the building – the average of the differences between the service life and the remaining useful life of the individual parts of the building – can be used to determine the extent to which the building is already ‘worn out’. The timing of the next cyclical refurbishment indicates when renewal will be required. Based on the proportion of the respective renewal costs relative to the total value and the duration of the refurbishment cycle , the annual depreciation due to age is calculated, which reflects the building’s annual loss in value.

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What other valuation methods are there?

Provided there are sufficient comparable properties – as is usually the case with detached houses and flats – hedonic models (the comparative value method) are used in most instances.

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For investment properties, the value is determined using the income approach or the discounted cash flow method. These methods focus on current and future annual rental income and the expected annual return for a potential buyer.

As already mentioned, the residual value method should be used for building land. With this method, a project study is used to determine the realisable potential (number of buildable units and square metres of floor area), which is then valued. The expected construction costs, including the contractor’s profit and risk, are then subtracted from this value, resulting in the final land value.

A comparison of the main valuation methods

	Real value	Hedonic	Residual	DCF / Income value
Short definition	New construction costs + land value – age-related depreciation	Value based on comparable data from similar properties (statistical model)	Land value = project value – construction and ancillary costs	Value = discounted future income (cash flows)
Suitable property types	Special properties, unique properties, few references	Apartments, single-family homes, solid base of comparable properties	Building land	Apartment buildings
Advantages	The substance of the building is taken into account	Market potential is optimally considered	Calculation based on the optimal use of the plot	Current and future cash flows are considered, sustainable approach
Disadvantages	The market (supply and demand) is not sufficiently considered	Limited reliability when there are few comparable properties	Very time-consuming; a project study is essential	Very complex calculation; discrepancy between target and actual rents

Conclusion

The real value method is an indispensable tool in property valuation. It is always used when comparative values are lacking or when rental income does not provide a reliable basis. Particularly in the case of unique or highly customised properties, it enables an objective and transparent valuation. Despite its limited scope of application, it remains essential for experts – not so much as a standard method, but rather as a precision tool used in specific situations.

The sale of building land proves particularly challenging – that is, not the traditional detached house, but undeveloped plots or properties with existing buildings and untapped development potential. This requires not only a keen sense of the market, but also sound knowledge of construction. It is precisely at this point that professional advice makes all the difference.

Sell or build on the land yourself?

If you are the sole owner, this decision is relatively straightforward. In the case of a community of heirs, however, the whole group must reach a consensus – a challenge that should not be underestimated.

In any case, the first step is to make a fundamental decision: Can I imagine living on this plot of land? Do I have the determination, the courage, the energy and the necessary resources – not just financially, but also in terms of time – to build a new home? Anyone who answers this question with a clear ‘no’ can move straight on to the selling process.

If the decision depends on financial circumstances, it is worth obtaining a professional property valuation. The residual value method, recommended by experts, kills two birds with one stone: A potential building project is outlined, and the property value is derived from this, taking into account the income value and construction costs. The result provides both a realistic estimate of the new-build costs and the current market value in the event of a sale – a solid basis for an informed decision.

The Swiss Landowners’ Association offers such a property valuation free of charge.

Step-by-step guide to selling a plot of land

The decision has been made: the property is to be sold. What is the best way to proceed?

Clarify your priorities
The first step is to ask yourself what your priorities are: what is really important to me as the seller? Possible answers might include:

I want to get the highest possible price – I don’t mind who buys the property.
It is important to me that the property remains in familiar hands and, if possible, goes to relatives or acquaintances.
I want the property to continue to be used in much the same way as before – whether for emotional reasons, such as family history attached to it. Large-scaledevelopment is out of the question for me.

If the highest price isn’t the main priority, it may be sensible to initially discuss the forthcoming sale discreetly amongst friends and family. However, caution is advised: experience shows that such information spreads quickly, and suddenly you’ll be contacted not only by acquaintances but also by estate agents in droves. In this case, too, it may be worth engaging an estate agent who can specifically advocate for your preferences.

On the other hand, if you’re aiming for the best possible price – and this is usually the case – professional support is essential.

Assessing marketability
Before the actual sales process begins, it is important to establish whether the plot is even marketable. Several factors play a role here:

The size of the plot – it is hardly possible to build a house on a plot of just 100 m².
The type of zoning – building zone, core zone, agricultural zone, etc.
Any entries in the land register, such as restrictions on sale or building.
The current hazard map.

Much of this information can be found in the ÖREB cadastre. ÖREB stands for ‘public-law restrictions on ownership’ and is publicly accessible via Cadastre.ch, for example. The extract contains, amongst other things, details of the building zone, the plot size, hazard zones, any development plans and building lines.

In addition, it is advisable to check the land register extract, which is available from the relevant land registry office. If the land register contains, for example, a restriction on disposal, this must be removed before the sale – otherwise the property is legally considered non-transferable.

As many of these documents are difficult for laypeople to understand, it is advisable to seek professional assistance at this early stage.

Obtaining documents
Potential buyers absolutely must have the following documents to make their decision:

Land registry extract
ÖREB extract
Municipal building regulations
Wording of easements and encumbrances (restrictions on disposal, building restrictions such as rights to build adjacent to the property, etc.)
Any applicable development plans
Hazard map
Depending on the plot, further plot-specific documents

Determining the sale price
A fair market value and plausible sale price can be determined on the basis of a professional property valuation. How such a valuation works is explained further down in the article.

When is the right time to sell?

Contrary to popular belief, there is no ideal time of year to sell a plot of land. In the competitive Swiss property market, there are prospective buyers ready to purchase in most locations throughout the year.
However, it makes sense to keep an eye on interest rate trends: low interest rates improve financing conditions for buyers and have a positive effect on the price you can achieve. If a rise in the base rate is expected in the foreseeable future, it may be worth not delaying the sale unnecessarily.

Sales strategy: on-market or off-market?

The priorities established earlier play a decisive role in determining the sales strategy. An off-market strategy – that is, foregoing a public listing in favour of discreet marketing within your existing network – can make sense in certain situations. However, anyone aiming for the highest possible price would be ill-advised to use this method: it simply does not reach all potential buyers.

Practical tip: Many estate agents claim to already know a suitable buyer within their network. However, the likelihood that this buyer is actually a good fit for the specific property is low. Such claims should always be viewed with a critical eye.

A listing within an internal network may, at best, make sense as a supplementary measure for a limited period. For price optimisation, however, a public listing with maximum visibility remains the superior tool: the more potential buyers are reached, the greater the variety of offers – and the higher the achievable sale price.

Attractive, professional sales documentation is essential for successful marketing. When it comes to plots of land, the aim is to demonstrate the potential of the plot to prospective buyers – ideally with a feasibility study drawn up by architects and appealing visualisations of a possible construction project. A single photograph of the undeveloped plot, by contrast, is not very convincing.

When it comes to pricing, there are also two approaches to choose from: the price is communicated transparently in the advert, or it is listed as ‘price on application’. The latter is often interpreted in professional circles as a sign of an inflated price. Those who opt for a professional valuation have a plausible, justifiable price – and therefore nothing to hide. Transparency builds trust among buyers and reinforces the credibility of the listing.

Start the sales process

Once the strategy, priorities and pricing have been clarified, the actual sales process can begin. Following the listing, you will hopefully receive enquiries from numerous interested parties.

It’s important to note that enquiries regarding plots of land are far more complex than those for flats or houses. Instead of questions about the flooring in the children’s bedroom, topics such as the cancellability of a water rights licence or detailed provisions from the building regulations suddenly come to the fore. Price negotiations are also more challenging, as you are often dealing with professional buyers who are tactically savvy – offers are deliberately made or withdrawn to exert pressure.

Anyone selling a plot of land on their own must be aware of this complexity. And that’s not all: there’s also the choice of the right notary’s office, the legal review of the contract of sale, ensuring the reservation process is carried out correctly, and dealing with tax issues.

How do I determine the ideal selling price?

As mentioned several times in this article, there is no getting round the need for a reputable, professional property valuation. The linked article on property valuation explains exactly how this works .

Common pitfalls when selling property

Mistakes when selling land can prove costly. The most common ones are:

Unprofessional sales documentation: Buyers are unable to form a clear picture of the plot’s potential – and banks lack a solid basis for their financing assessment.

Lack of market knowledge and negotiating skills: Land in sought-after locations is highly competitive. Professional property developers and institutional investors are on the lookout for bargains – and ill-informed private sellers are easy prey. Purchase offers should therefore always be reviewed by an independent expert.

Overly high asking prices: A plot of land that remains on the market for too long at an unrealistic price becomes a slow-moving property. Subsequent price reductions are then of little help – the property has been ‘burned’.

Overconfidence: Even well-informed and committed private individuals underestimate the effort involved in such a transaction. The flood of emails containing complex questions about buildability, encumbrances, hazard maps or financing details can quickly overwhelm even experienced sellers.

Failure to secure commitments: The building land market also attracts dubious prospective buyers. They submit supposedly binding offers – only to pull out shortly before the contract is signed. The seller is then left to foot the notary’s fees. Therefore, the rule is: always work with deposits, reservation agreements, financing confirmations and irrevocable payment undertakings.

Which buyer groups are suitable?

This depends heavily on the plot’s suitability for development. Smaller plots in single-family residential areas generally attract private households. Where plots are suitable for a block of flats, professional property developers and institutional investors – such as pension funds – quickly come onto the scene.

Given the political trend towards denser development, multi-family homes are now possible even on smaller plots. Even a standard detached house with an appealing footprint can thus become an attractive building plot – and appeal to a correspondingly broad range of buyers.

What costs are involved in selling a plot of land?

The following overview shows the main cost items:

Cost type	Amount
Notary fees	Up to 0.8% of the transaction value
Land registry fees	0.1% to 1% of the transaction price
Real estate transfer tax (varies by canton)	1.0% to 3.3% of the transaction price
Land value levy (in case of rezoning)	20% to 40% of the land value increase
Property gains tax	Varies depending on the gain, holding period and deductions
Brokerage fees	Usually around 5% of the achieved sale price

Conclusion

Selling a plot of land is significantly more complex than selling a flat or a detached house. In addition to legal, tax and structural issues, the correct valuation, a well-thought-out sales strategy and professional sales documentation play a crucial role.

Anyone who sells their plot of land below its value or neglects important checks risks significant financial losses. Conversely, careful preparation pays off: it helps to achieve the best possible price and ensures the entire process is handled efficiently and in compliance with the law.

Particularly in the case of building land or plots with development potential, it is worth consulting experienced specialists at an early stage. Professional guidance provides certainty, reduces risks – and helps to realise a plot’s full potential.

What is often forgotten: Many real estate purchases made by ‚persons from abroad‘ are not subject to the Lex Koller. This is because not only nationality is decisive, but also residency status. In practice, someone who has a residence permit is often not considered a ‚person abroad‘ within the meaning of the Lex Koller – and therefore does not need permission

What does the Lex Koller regulate and to whom does it actually apply?

In principle, the Lex Koller requires foreign nationals to apply for a permit before acquiring land or property in Switzerland. At first sight, this seems restrictive, but in reality the law only applies to a small proportion of cases. The reason is that many buyers are not considered foreign citizens under the law.

They are not considered foreign nationals within the meaning of the Lex Koller

all persons in possession of a residence permit C and domiciled in Switzerland
nationals of EU/EFTA countries who reside in Switzerland and hold at least a B residence permit

In practice, this means that, for example, German nationals with a B permit or US citizens with a C permit living in Switzerland can buy a house without any problems – and without having to obtain a permit. This puts them on an equal footing with Swiss citizens as far as real estate transactions are concerned.

The following diagram shows the scope of application of the Lex Koller according to use and type of property:

Exceptions to the authorisation requirement – clearly regulated

If it is indeed persons from abroad within the meaning of the Lex Koller, the law nevertheless provides for several exceptions for which no authorisation is required. The main exceptions are as follows:

Third-country national s holding a B residence permit and domiciled in Switzerland may purchase a property as their main residence.
Cross-border commuters may purchase a second home in the border area of their place of work .
Permanent establishments: commercial properties used for operational purposes can be purchased regardless of the residence status or origin of the owners.
Holiday flats: in recognised tourist regions, up to 1,500 units may be sold to foreign residents each year throughout Switzerland. Quotas are allocated by the cantons and municipalities may also set their own restrictions or refusals.

Restrictions on exceptions

Anyone requesting an exception is subject to specific restrictions on the use and nature of the property.

Surface :

main residence (third-country nationals): max. 3,000 m².
holiday accommodation: max. 2,000 m².
Cross-border commuters: max .1,000 m².

Living space :

Holiday flats: max . 200 m².
For the other categories, there is no legal limit on living space.

Other features:

Renting is not permitted in all exceptional cases.
For building land: constructionmust begin within one year.

Principle: if a permit is needed, it is usually a problem.

If permission is nevertheless required as part of a transaction, special care must be taken. In advisory practice, the principle is that an acquisition subject to authorisation is a special case and should always be examined with a critical eye. In such cases, it is advisable to involve the competent cantonal authorities at an early stage and, if necessary, to ask for prior clarification (request for a statement of facts)

Procedure and powers

The cantonal authorities are responsible for verifying the need for an authorisation and for granting it . In case of uncertainty , a request for a ruling can be submitted to obtain clarification on the applicability of the Lex Koller

Conclusion – Understanding and applying the Lex Koller

At first sight, the Lex Koller appears to be a comprehensive and restrictive law. In practice ,however, itisnot appliedin many cases, as a large percentage of buyers are not considered foreigners within the meaning of the law. The decisivefactoris notnationality, but residency status.

Only when a permit is required does more care need to be taken. In these cases, a thorough examination should be carried out, possibly with the participation of the cantonal authorities.

The rule for real estate professionals is therefore: do not be discouraged – provide differentiated and legally secure advice.

1 year ago

What does the Lex Koller regulate and to whom does it actually apply?

They are not considered foreign nationals within the meaning of the Lex Koller

all persons in possession of a residence permit C and domiciled in Switzerland
nationals of EU/EFTA countries who reside in Switzerland and hold at least a B residence permit

The following diagram shows the scope of application of the Lex Koller according to use and type of property:

Exceptions to the authorisation requirement – clearly regulated

Third-country national s holding a B residence permit and domiciled in Switzerland may purchase a property as their main residence.
Cross-border commuters may purchase a second home in the border area of their place of work .
Permanent establishments: commercial properties used for operational purposes can be purchased regardless of the residence status or origin of the owners.
Holiday flats: in recognised tourist regions, up to 1,500 units may be sold to foreign residents each year throughout Switzerland. Quotas are allocated by the cantons and municipalities may also set their own restrictions or refusals.

Restrictions on exceptions

Anyone requesting an exception is subject to specific restrictions on the use and nature of the property.

Surface :

main residence (third-country nationals): max. 3,000 m².
holiday accommodation: max. 2,000 m².
Cross-border commuters: max .1,000 m².

Living space :

Holiday flats: max . 200 m².
For the other categories, there is no legal limit on living space.

Other features:

Renting is not permitted in all exceptional cases.
For building land: constructionmust begin within one year.

Principle: if a permit is needed, it is usually a problem.

Procedure and powers

Conclusion – Understanding and applying the Lex Koller

Only when a permit is required does more care need to be taken. In these cases, a thorough examination should be carried out, possibly with the participation of the cantonal authorities.

The rule for real estate professionals is therefore: do not be discouraged – provide differentiated and legally secure advice.

Background for the renewed interest rate cut

One of the main reasons for the interest rate cut is the very weak inflation. In May 2025, consumer prices fell by 0.1 % compared to May 2024.

Why has inflation fallen so sharply? The very strong Swiss franc has caused the prices of imported goods to fall and oil prices have fallen by an impressive 9.6 % compared to the previous year. In important areas, however, the picture is different: prices for services have risen by 0.6 % and residential rents have even increased by 2.6 %. There can therefore be no talk of broad-based deflation as yet.

Consequences for the property and mortgage market

Mortgage interest rates had already fallen significantly in the run-up to the interest rate decision and ten-year fixed-rate mortgages are available for well under 1.5% in some cases. SARON mortgages are reacting directly to the interest rate cut, although the banks will continue to try to widen their margins. It can therefore be assumed that SARON mortgages will fall by slightly less than 0.25%.

Falling mortgage rates lead to increased demand for property and rising property prices. The shock of the interest rate turnaround from 2023 has now definitely been overcome and even a return to negative interest rates seems to be within reach.

1 year ago

Background for the renewed interest rate cut

One of the main reasons for the interest rate cut is the very weak inflation. In May 2025, consumer prices fell by 0.1 % compared to May 2024.

Consequences for the property and mortgage market

Lucerne: Pioneer with 90-day rule

Since January 2024, a maximum of 90 rental days per year have been permitted in residential zones. The city wants to counteract the misappropriation of living space. The regulation is seen as a model for other cities and regions in Switzerland.

Zurich: Interventions at municipal and cantonal level

A revised building and zoning code has restricted commercial short-term rentals in residential zones since 2024. In addition, the SP is planning a municipal popular initiative for a 90-day upper limit. Cantonal regulations are also under discussion

Basel-Stadt: visitor’s tax and possible upper limit

A new law is to centralise the collection of the tourist tax. At the same time, a 90-day limit is being debated, accompanied by proposals for stricter reporting obligations.

Bern: Old town under protection through „Lex Airbnb“

Since 2022, a special regulation has been in force in Bern’s old town that restricts commercial holiday flats on upper floors. No further cantonal regulations are currently planned.

Geneva: Pioneer with established 90-day limit

In Geneva municipalities with a tight housing market, a 90-day limit has been in place for several years. Providers must register their lettings and adhere to local guidelines.

Valais: local solutions instead of cantonal law

Zermatt, Verbier & Co. have introduced their own restrictions via zoning plans or tax law. A cantonal regulation is still lacking, but is being called for.

Interlaken and Bödeli region: strict regulations

Registration requirements and a minimum stay of five nights in residential zones have been in force since 2019. A new regional popular initiative wants to introduce an additional 90-day limit.

Thun: regulations in progress

In October 2024, the municipal council approved a motion calling for municipal regulations. The actual drafting is currently underway.

Graubünden: Analysis before legislation

A study on the effects of short-term rentals was commissioned in 2023. A decision on specific regulations will only be made once this has been analysed.

Conclusion: 90-day rule as the Swiss standard?

The 90-day limit is increasingly seen throughout Switzerland as a suitable instrument for harmonising tourist use and the protection of residential space. While some cantons have already passed legislation, others are still in the analysis or implementation phase. One thing is clear: political interest in fair, transparent platform rentals is growing

1 year ago

Lucerne: Pioneer with 90-day rule

Zurich: Interventions at municipal and cantonal level

Basel-Stadt: visitor’s tax and possible upper limit

A new law is to centralise the collection of the tourist tax. At the same time, a 90-day limit is being debated, accompanied by proposals for stricter reporting obligations.

Bern: Old town under protection through „Lex Airbnb“

Since 2022, a special regulation has been in force in Bern’s old town that restricts commercial holiday flats on upper floors. No further cantonal regulations are currently planned.

Geneva: Pioneer with established 90-day limit

In Geneva municipalities with a tight housing market, a 90-day limit has been in place for several years. Providers must register their lettings and adhere to local guidelines.

Valais: local solutions instead of cantonal law

Zermatt, Verbier & Co. have introduced their own restrictions via zoning plans or tax law. A cantonal regulation is still lacking, but is being called for.

Interlaken and Bödeli region: strict regulations

Registration requirements and a minimum stay of five nights in residential zones have been in force since 2019. A new regional popular initiative wants to introduce an additional 90-day limit.

Thun: regulations in progress

In October 2024, the municipal council approved a motion calling for municipal regulations. The actual drafting is currently underway.

Graubünden: Analysis before legislation

A study on the effects of short-term rentals was commissioned in 2023. A decision on specific regulations will only be made once this has been analysed.

Conclusion: 90-day rule as the Swiss standard?

Increasing natural events in the Alps

The Blatten landslide will be remembered – not least because it is not an isolated incident and is unlikely to remain so. There have been comparable events in Brienz GR (major landslide in 2023; rock activity with evacuation in October 2024) or in Kandersteg BE, where the impending demolition of the „Spitzen Stein“ is causing concern.

Reactions from the property markets so far

How are the property markets in risk zones developing? Is the holiday apartment market in the Swiss Alps affected overall?

According to a report by Wüest Partner, between 2022 and 2024, only eleven properties in the highest risk class 5 for debris flows were sold. Although this data is limited, the prices of these properties were on average 30% below those of comparable properties outside the hazard zones. In hazard classes 3 and 4 (medium to increased risk of debris flow), the price decline was significantly lower at just 0.6 %.

Overall, the figures show that Across all recorded natural hazards (floods, surface runoff, landslides, avalanches, hillslope debris flows), the price declines in zones 3 and 4 (low to medium hazard) were only between 0.6% and 1.4%.

A remarkable paradox can be seen in the area of avalanche danger: in danger zones 3 and 4, prices rose by up to 8.1 % during the period under review. Only in zone 5 was a price reduction of 4.9 % recorded. Many of the properties concerned are in attractive locations with spectacular views. For many prospective buyers, the residential or holiday experience apparently outweighs the perceived risk. This development also emphasises the continued high stability of the second-home market in Switzerland.

Conclusion

A general collapse of the second-home market in the Alps is not to be expected at present. Nevertheless, the Blatten landslide has attracted widespread media attention and significantly increased awareness of natural hazards – both among the population and among authorities and financial institutions. It is therefore to be expected that the framework conditions for property purchases (including more precise hazard zones and stricter lending criteria) will become more stringent in future.

One thing is certain: Natural hazards – especially debris flows – remain a key issue for mountain regions and pose challenges for the stakeholders involved at many levels.

1 year ago

Increasing natural events in the Alps

Reactions from the property markets so far

How are the property markets in risk zones developing? Is the holiday apartment market in the Swiss Alps affected overall?

Conclusion

One thing is certain: Natural hazards – especially debris flows – remain a key issue for mountain regions and pose challenges for the stakeholders involved at many levels.

Market value

In their daily advisory and valuation work, the valuation experts of the Swiss Landlords Association rely on the definition of market value given by the renowned valuation expert FrancescoCanonica(Immobilienwertmittlung (SIV), Canonica Francesco 2009):

Market value is the maximum unrestricted price that a potential buyer would be willing to pay for the property in question on the day of valuation in normal commercial transactions, taking into account all influences on value.

We consider this to be the lightest and most accurate definition of a complex subject

Market value broken down into individual elements

For a better understanding, let us break down the definition of market value into its main parts and follow Francesco Canonica’s explanations here as well:

Maximum price: corresponds to the maximum price still acceptable for the typical group of buyers. If a single, particularly interested buyer pays a price above the maximum price, we speak of an amateur price.

No price limit: when determining the market value, no restrictive rules, such as those applied by banks, insurance companies or valuation agencies, should be taken into account.

The potential buyer: every property has a specific circle of buyers, whose needs are best met by the property being valued.

Thevaluation day: the market value estimate is a snapshot of all factors that can be identified on the reference date and that have an influence on the property to be valued. Francesco Canonica talks about the ‚here and now‘ and points out that factors influencing value (e.g. mortgage interest rates) can change in a short period of time and have a positive or negative impact on the maximum price to be achieved.

It is therefore advisable to be cautious with old property valuations. The market value is only valid if the factors influencing it do not change.

Practical example: an owner of a single-family home had the market value of his home appraised in January, and the appraiser indicated a market value of 1,250,000. Now it is June and the Swiss National Bank has changed the reference interest rates three times since January, reducing them from 1.5% to 0.75%. The estimate of the market value is no longer valid due to the abrupt change in the interest rate environment and must be adjusted.

In the case of normal business transactions: the seller and the buyer do not act under pressure and do not have relationships that would hinder normal business transactions (e.g. family relationships).

Taking all influences on value into account: the estimate of the market value must take into account all factors influencing the value formation process of the typical buyer’s circle.

For the property in question: the estimate of market value applies only to the property under assessment and not to other properties.

Not to be confused: market value is not a price
The two terms ‚value‘ or ‚market value‘ and ‚price‘ are often confused, even by experienced market practitioners.

The Swiss Valuation Standards (SVS) define them as follows: ‚The value of a property represents a forecast of the price that could be obtained on the market in the event of a transaction. The price of a property, on the other hand, is the amount actually obtained when it is bought or sold‘.

And what about market value?
The terms ‚market value‘ and ‚market value‘ are identical and can both be used

What is not a market value?

It is always surprising which terms are wrongly equated with market value. It is time to get to the bottom of this with a list – derived from Canonical.

The following are not market values

Bank valuations
Property valuations prepared by banks are used for financing purposes and are often characterised by a conservative attitude that has nothing to do with market value. The bank’s guarantee value, which defines the maximum amount of the mortgage granted by the bank, has even less to do with market value.

Insurance value
Insurance values are used to determine potential payments for insurance claims and premiums and are calculated as replacement value or current value. Insurance values are not market values, nor can they be converted to market values.

Practical example: a valuation expert from the Landowners‘ Association values a single-family house built in 1956 in the canton of Aargau at CHF 900,000. The owner is disappointed by this value and suspects a valuation error, since the insurance value of the building is higher than CHF 900,000 and still does not take into account the value of the land. Unfortunately, this logic is flawed, as the insurance value of the building is a replacement value (taking into account the current costs of a new construction) and does not take into account the huge backlog of renovation work on the property.

Tax values
Tax values (e.g. official value, tax value, etc.) are determined at cantonal level and are used for income and wealth tax purposes. The calculation is completely different from market value and is based on political and fiscal objectives. The Landowners‘ Association strongly advises against the widespread ‚magic‘ conversion of tax values into market values.

A practical example: a potential buyer wants to buy an apartment building in Berne offered by the Landowners‘ Association, but is put off by the price of CHF 1.2 million. His argument that the official value is ⅔ of the market value and that therefore the purchase price should not exceed CHF 900,000 is inadmissible. The potential buyer must therefore revise his price upwards or look for another property.

Amateur value
According to the Swiss Valuation Standards (SVS), amateur value includes not only economic motives, but also subjective aspects that the amateur values higher than most market participants (or the typical circle of buyers of the object). The amateur value is therefore higher than the market value.

Liquidation Value
Liquidation value is the value created under time pressure. Liquidation values are lower than market values