SWITZERLAND Trends and Developments Contributed by: Andreas F. Vögeli, Fabiano Menghini, Charles Gschwind and Annina Fey, Niederer Kraft Frey
Sustainability and ESG ESG as an investment criterion
Digital platforms are streamlining property transac - tions, leasing, and asset management, increasing transparency and accessibility. Smart buildings Smart building technologies are being installed more frequently in new developments. Such systems can reduce operating costs, improve sustainability perfor - Lex Koller continues to shape cross-border invest - ment in Swiss real estate by restricting the acquisi - tion of property by foreign individuals and entities and remains one of the most prominent regulatory consid - erations in the Swiss real estate market. While no fundamental overhaul has yet been imple - mented recently, political signals suggest renewed momentum toward tightening aspects of the regime. In practice, the authorities conduct thorough and detailed examinations in borderline cases. This applies in particular to situations involving foreign lenders with “owner-like” influence, mixed-use properties with var - ying usage profiles, and intra-group financing arrange - ments that may blur control structures. mance, and enhance tenant comfort. Regulatory and Policy Landscape Lex Koller As a result, transactions now routinely incorporate detailed regulatory assessments and conserva - tive financing structures. Lex Koller considerations increasingly extend beyond direct residential acqui - sitions by foreign buyers and influence financing, restructuring, and structuring of collateral. Zoning, planning, heritage protection, and ISOS Planning procedures have become more complex and time intensive. Densification policies, environmental standards, heritage protection, and political participa - tion rights intersect in ways that extend project time - lines and increase execution risk. The ISOS inventory (Federal Inventory of Heritage Sites of national importance) continues to signifi - cantly affect redevelopment potential in designated areas. Developers must carefully balance preserva - tion objectives with economic feasibility and housing demand.
Sustainability considerations have become embed - ded across the real estate life cycle. Energy-efficiency standards, CO₂ reduction targets, and environmental reporting obligations increasingly shape development approvals, asset management strategies, and trans - action documentation. Planning authorities frequently require low-carbon systems and energy optimisation measures. Larger asset owners face growing expectations regarding climate reporting and life cycle transparency. Institu - tional investors integrate ESG metrics into acquisition models. Financing structures may include sustainabil - ity-linked components. It is, therefore, advisable to conduct a technical due diligence of energy installations, environmental per - mits, and compliance with sector-specific require - ments. In asset classes such as data centres, energy sourcing and grid stability are fundamental to invest - ment viability. Energy transition and building retrofits Switzerland’s climate targets are driving large-scale building retrofits. Owners are investing in: • insulation upgrades; • renewable energy systems; • heat pumps; and • smart energy management. Retrofitting existing buildings represents both a chal - lenge and a major investment opportunity. Technology and Innovation Digitalisation Digitalisation is transforming the real estate life cycle. Building Information Modelling (BIM) and advanced data analytics improve planning accuracy, reduce costs, and enhance operational efficiency. The appli - cation of artificial intelligence in areas such as valua - tion, asset management, and predictive maintenance is also attracting increasing attention.
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