Is your villa located on a plot within a development zone? The sale price of the land itself is not regulated by the State. However, the future sale or rental prices of the units to be built by a property developer are controlled, as is the developer’s profit margin. In practice, this means that while your land’s sale price isn’t fixed, the amount you can ultimately receive will be strongly influenced by what is known as its “replacement value”. Put simply, this is the maximum amount a developer can include in the financial plan of a real estate project on your plot.
Be aware that both the State and the relevant Municipality hold a pre-emption right on your plot. This means they can choose to replace the buyer and acquire the land themselves, possibly at a different price than what was initially offered. In such a case, it’s essential to contact the relevant authorities to understand their intentions before finalizing any sale.
Get in touch with the GRANGE Properties team to discuss your situation and receive an estimate of your property’s replacement value.
What is a development zone?
The development zone (ZD) refers to areas where new constructions must comply with the conditions laid out by the General Law on Development Zones (LGZD – L 1 35) dated June 29, 1957, and its implementing regulations (RGZD – L 1 35 01).
For more details, refer to the administrative guidelines of the Cantonal Office for Housing and Land Planning (OCLPF).
Excerpt from our guide: Selling Your Home in 42 Questions