The right of superficies

Investing without owning the land: Baurecht changes the rules of the Swiss market

What is it and why is it becoming increasingly popular?

In Switzerland, where land prices are among the highest in Europe, building rights (Baurecht) offer an alternative to traditional purchasing.
It is neither renting nor timeshare: it allows you to build on someone else’s land, paying an annual fee, usually for a period of between 30 and 99 years.

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How does it work?

Those who access Baurecht do not purchase the land, but obtain the exclusive right to build on it. In exchange, they pay an annual fee to the landowner, who is often a public body or foundation. This mechanism allows the landowner to maintain long-term control over the area, while the user can enjoy an independent, transferable and mortgageable real right.

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Where is it most commonly used?

• Zurich: the municipality uses building rights to promote cooperative housing and student accommodation.
• Bern and Lausanne: numerous projects on municipal land with 60–99-year contracts.
• Canton Ticino: growing interest from public bodies and foundations in creating social housing.

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Advantages

• Access to lower-cost housing: you don’t pay for the land, only the right to build, which reduces the initial price — particularly useful in cities with high prices.
• Tax deduction: the ground rent can be deducted for tax purposes in some cantons, reducing the tax burden.
• Promotes sustainable and social housing: municipalities and cooperatives can use Baurecht to develop affordable housing projects without permanently transferring ownership of the land.

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Risks and limitations

• Decreasing value over time: the right has a limited duration (usually 30–100 years), and when it expires, the property may revert to the landowner (a phenomenon known as “Heimfall”).
• Financing difficulties: many banks are reluctant to grant mortgages for properties under Baurecht or impose more restrictive conditions.
• Complexity in valuation and marketing: calculating the value of a property with Baurecht is complicated, and its resaleability may be limited.

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Conclusion

Baurecht is a useful tool for accessing properties in central and expensive areas, but it is not suitable for everyone.
It requires careful technical and legal assessment, but for those looking at the long term or social projects, it can be a real opportunity.
Have you ever thought about buying without owning the land?

Your anfina