Buy a property in development zone in Geneva
July 26, 2019
When you want to become an owner in Geneva, it is important to do some soul-searching before investing. Indeed, several possibilities are available to you that is why it is better to inquire beforehand. Among the possible choices, there is the purchase of real estate in development zone. This is particularly interesting to buy a property cheaper than the market price.
What is a development zone?
First of all, you should know that the development zone is a geographical area in which new constructions are subject to control by the State of Geneva. The rules are set by the law of June 29, 1957. The development zone is a specificity of Geneva which offers a unique opportunity for the middle class to buy a property.
How is the price of a property in a development zone fixed?
It is good to know that the maximum initial price of property in development zone is set by the State of Geneva. The sales price is estimated at the beginning of the project as part of the building permit application. In addition, the cantonal office of housing and land planning approves an average selling price per square meter for all dwellings according to the characteristics of the project (plans, location, environment…)
This capped price is then checked for ten years from the average entry date of the first owners.
Which conditions do you have to respect?
Since November 2016, any new owner of a property in a development zone must live in the accommodation purchased. It is under this condition that he can benefit from a price up to 40% less than the market price. In any case, he can’t leave the dwelling empty or buy several apartments in the development zone. On the same hand, only people can buy in these areas, excluding purchases by companies.
Is it possible to rent a property in a development zone?
Yes but for the rental of the property during the control period, the owner must ask in writing to the cantonal office the maximum rent he can apply. And that, before the conclusion of the lease.
How to resell a home in a development zone?
The owner of an accommodation in a development zone can resell his property during the period of legal control of 10 years but only at a maximum price authorized by the cantonal office of housing and land planning. The price must also be indexed to the Geneva consumer price index. For those interested, the State of Geneva publishes here plans for the sale of dwellings in development zones.