Real Estate

Assessing the Development Potential of Your Land

When you own a plot of land and are considering selling it, it is essential to assess its value as accurately as possible. Many factors must be taken into account, including applicable regulations, the characteristics of the land itself, and its intrinsic qualities. Let us look at the key elements to consider when carrying out a valuation.

What Should Be Taken into Account During a Valuation?

Laws and Regulations

Plots of land are subject to a wide range of laws and regulations at federal, cantonal and municipal levels.

In the Canton of Vaud, municipalities establish most of the applicable regulations, whereas in Geneva this responsibility lies primarily with the canton.

At federal level, the Federal Act on Spatial Planning (LAT) sets out the main principles governing construction and land use. It may sometimes conflict with more local regulations, such as Municipal Land Use Plans (PGA).

This complex regulatory framework plays a major role in determining the value of a plot of land. It is therefore essential to work with a specialist who can fully understand and assess all of its implications.

Constraints and Restrictions

Easements (private-law restrictions) can also affect the sale value of a plot.

These may relate to construction rights (building authorisations, encroachments, building areas, etc.), but also to rights of way, planting and fencing restrictions, or utility networks and pipelines.

All of these factors should be carefully identified during the valuation process.

The characteristics of a site, such as the presence of forests, watercourses or protected vegetation, may limit the area on which construction is permitted. Tree removal, for example, is subject to very strict regulations.

Similarly, the absence of an access road, or the inability to widen an existing access route, may reduce what can be built on the site.

The presence of existing buildings can also have varying implications. An old farmhouse protected by heritage regulations, and therefore impossible to demolish, may negatively affect the value of a plot.

Two reference systems are particularly important when determining whether an existing building is protected:

ISOS (Federal Inventory of Swiss Heritage Sites of National Significance), maintained by the Swiss Federal Office of Culture.
The inventory maintained by ICOMOS (International Council on Monuments and Sites).

These two organisations assess the heritage value of buildings and help determine what may be demolished, altered or preserved, with the overall objective of safeguarding the quality of living environments.

NewHome Services, Your Preferred Partner for Land Valuation

Founded in 2007, NewHome Services has extensive expertise in real estate development throughout the cantons of Vaud and Geneva.

Specialising in land acquisition and development, our team can assist you in assessing the value of your land to ensure a fair price aligned with current market conditions.