Newsletter January 2019
Dear real estate enthusiasts,
On the 10th February, there will be a vote on a referendum proposing restrictions on increased urban development. This will have the objective of freezing Swiss building zones at today’s quotas in order to protect nature reserves and agricultural land. What - to all intents and purposes - might appear to be a sensible measure is in fact fallacious on the basis that, assuming the motion is accepted, landowners will fear being re-designated into an exclusion zone and will rush to secure planning permission to build on existing development reserves without any obvious demand. In the long term, the initiative will lead to a shortfall in available land and a corresponding increase in land prices. The costs will ultimately be borne by tenants and purchasers of freehold property. An appropriately measured framework for the treatment of Swiss land transactions has already been legislated for under the regional planning laws amended in 2014.
Friendly greetings,
Claude Ginesta
