Real estate Your route to home ownership: finding and buying land

In almost all cantons there is still enough building land for sale to be able to to realize your dream of owning a home. Read our tips on how to find and successfully buy the right plot of land.

by UBS Insights 20 Mar 2023 6 min read
Building zones and available plots in the countryside
Image: Getty Images

If you want to build a house but still don’t have your own plot, you must find and purchase building land. Choosing your plot carefully is at least as important for your quality of life as the design of the building, and is central to the overall price of the property. You’ll find answers to frequently asked questions on the topic of building land in the following article.

Building land in Switzerland in figures

  • Building zones make up only 5% of Swiss territory
  • 46% of building zones are residential
  • 16% of residential building zones are undeveloped and are available for construction

Where in Switzerland is there available building land?

In the canton of Valais, 33 percent of residential building zones have not been built on, which is the highest rate in Switzerland. In the cantons of Geneva, Vaud and Neuchâtel, many residential zones – up to 25 percent – are still undeveloped. In most cantons in German-speaking Switzerland the reserves are smaller, up to a maximum of 12 percent, of which Basel City has the lowest amount of undeveloped land.

Map of Switzerland with information on vacant building areas per region

Undeveloped residential building zones as a percentage of total building zones.
The Swiss average is 16%.
Sources: ARE, UBS

How has the amount of land available for building changed?

The total buildable area in Switzerland has hardly changed in the last five years. The exceptions are: in the cantons of Zug and Bern, 1.5 and 1 percent respectively of the buildable area has been rezoned and released for development. And in some parts of West Switzerland, large areas were dezoned or rezoned, meaning land was assigned a new intended use. For example, this includes industrial land which was rezoned as residential, or vice versa if the area was dezoned.

Where can new zones be expected?

The available residential building zones should be sufficient to meet demand over the next 15 years, according to the Federal Act on Spatial Planning. According to a study by UBS’s Chief Investment Office, there is surplus capacity in several cantons, especially in West Switzerland. There is a greater need for new zoning, i.e., for additional land to be assigned to building zones, in particular in the cantons of Zurich and Aargau.

The building loan for your project

With the building loan offered by UBS, you have access to a building account where all costs related to your dream of home ownership can be managed.

Where can I find a plot of land?

You can find general information about the population, taxation levels and the development of land prices in your chosen municipality in the UBS Municipality guide. Here are the main ways you can find a plot:

  • Take a look at the advertisements in daily and weekly newspapers, both online and printed.
  • You can search according to specific criteria or save a search request, for example, on real estate portals such as Homegate or ImmoScout24.
  • Appoint an estate agent to search on your behalf.
  • Foreclosures can also occasionally provide an opportunity to find building land. These are published in official registers, although these are not always easily searchable.
  • Take a look at the zone plan in your chosen municipality and contact the municipal administration. Asking around in your local restaurant or among other well-informed sources in the area may also help find some land.

All the facts on your chosen municipality

Do you already have an idea of where you’d like to search for land? The municipality guide gives you information on the development of real estate prices as well as the population of a municipality. You can also find out the classification of the location or the tax burden with the tool, which is easy to use and free of charge.

Municipality guide

How much does building land in Switzerland cost?

The price per square meter is between 200 and over 2,000 francs. The average is between 600 and 800 francs. Prices depend not only on the location but also on the Ausnutzungsziffer, i.e., the ratio between the plot size and the maximum area which can be built on, infrastructure provision at the site and the building regulations. Full utility connection including access, water and wastewater piping, electricity, telephone and fiber optic cabling can cost from 100 to 150 francs per square meter according to hausinfo.ch. If a site is not already connected to the utilities, this must be taken into account in the price comparison with other offers where they are included. Real estate portals such as Homegate allow you to search according to the price, or in a specific canton, for example.

What should I pay attention to when buying a plot of land, and which mistakes should I avoid?

  • You should carefully study the municipality’s zone plan and building regulations: is it definitely building land? Which building regulations apply, for example, those relating to the roof pitch, height or soundproofing? What is the maximum percentage of the plot of land that can be developed?
  • A look at the land registry will reveal whether there is a right of way (formal permission for neighbors to cross your property for access), which could restrict building on the land.
  • If possible, obtain planning permission before purchasing the plot.
  • If the site is not yet fully connected to utilities, establish the additional costs this will incur.
  • Do not rely entirely on information provided by the seller; study all available documents including sales documentation.
  • Consider not only the price of the land, but also the overall costs of the house, financing of the mortgage and its affordability. When buying land, land registration fees will apply and, depending on the canton, land transfer tax. Altogether this can total up to 5% of the purchase price.

How does financing a land purchase in Switzerland work?

If you cannot finance the purchase from your own funds, the building land will generally be financed together with the building project itself. 20 percent of the total amount should be financed with your own equity.

Advice on buying land and financing real estate

Our advisory teams have extensive expertise and will be glad to support you, whether with assessing the quality of your chosen location or with financing your building project.

Ready to purchase your plot?

As you can see, there is enough available land in Switzerland for your building project – with just a few regional exceptions. With a moderate amount of effort it’s usually possible to find a plot, and the potential pitfalls are avoidable. With our tips and recommended tools you are in a good position to take the next step towards realizing your dream of owning your own home.

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