Newsletter July 2020
Dear Real Estate Friends
The Federal Court has handed down a landmark ruling on the Secondary Residence Act. Article 11 of the law states: "Apartments under the old law may be extended within the building zones by a maximum of 30 percent of the main floor space existing on 11th March 2012, provided that no additional apartments are created." Now the Federal Court has clarified this interpretation and prohibits the extension of the floor space in the case of replacement buildings, even if this does not create additional housing units. This means that many developers whose projects have not yet been approved will have to start planning again from scratch. This decision will contribute to a further shortage in the supply of secondary residences and thus reduce the options for buyers.
Sincerely yours
Claude Ginesta
