The property professionals’ solution

In Switzerland, the construction of new housing is decreasing mainly because of the growing number of objections and appeals, which today represent a major obstacle to the development of real estate projects.

What is the role of objections?

Before any construction site, the project manager must obtain a building permit, an obligatory administrative authorization for any new construction, transformation, elevation, or demolition of a building.

An objection can be filed during the authorization procedure, that is, before the issuance of the building permit. This right offers the possibility to persons or entities directly concerned by a construction project to assert their interests. In particular, may oppose it:

• Private individuals, generally the neighbours, whose private interests are directly affected by the planned construction;
  
• Private organizations whose statutes provide for the defence of interests protected by the legislation on spatial planning (e.g. associations for the protection of nature, landscape, or heritage);
  
• Municipalities, associations of municipalities, or the State, when they are concerned by the project.

What are the reasons for objection?

Among the most frequent reasons for objection are:

• The noise generated by the construction work;
  
• The height of the building or the obstruction of the view;
  
• The protection of the site, the landscape, or the heritage;
  
• The increased traffic or parking problems linked to the rise in the number of inhabitants.

Example of the procedure of an objection

A person holding the right of objection can contest a construction project by sending a letter to the municipal administration. Then, a conciliation meeting is organized, to which the project developers and the opponents are invited. At the end of this meeting, the opponents may decide to withdraw or to maintain their objection.

If no agreement is reached, the municipal authority rules on the objection within three months after the meeting. It then issues a decision concluding either to grant or to refuse the building permit. This period may be extended by three months if the file is incomplete or if additional documents (updated plans, expert reports, recommendations, or opinions from the relevant services) are necessary for the decision.

Objections from a critical point of view

Objections today constitute one of the main obstacles to the realization of new housing projects. According to a study by the Swiss Confederation, many respondents say they are concerned about "abusive" objections. These are sometimes used to block or delay construction projects, or even to put pressure on developers.

Experts agree that planning and authorization procedures could be faster and more efficient, while being better protected against abusive objections and appeals. The problem seems to lie in the ease with which certain projects can be slowed down or paralyzed by the filing of an objection.

Potential negative consequences of objections for project managers

Objections constitute a legitimate stage of the democratic process, but they can have negative effects for real estate project managers.

Additional costs: When an objection is filed, the first conciliation meetings are at the expense of the developer, around 105 francs per hour. To this are added the costs related to possible delays, or, in the most extreme cases, to the cancellation of the project.

Loss of time: Objections lengthen construction deadlines. If conciliation does not succeed, the municipal authority must decide within three months, and within an additional three months if the file is incomplete. This process delays the marketing of real estate properties and causes financial losses.

Risk of project stoppage: A project, even before its realization, requires many hours of preparation and significant investments. When an objection leads to its halt, it represents a considerable loss of time and money for the developer.

Increased complexity: The realization of a project becomes increasingly difficult. The procedures to obtain a building permit are long and demanding. This system, based on a balance between different interests, reflects the democratic nature of construction in Switzerland, but also contributes to the slowness of housing production.

Planning uncertainty: Site managers often have to modify or postpone the work schedule, which complicates coordination between architects, suppliers, and subcontractors. This uncertainty reduces control over costs and logistics.

Imposed modifications: To lift certain objections, it is sometimes necessary to adapt the project, building height, orientation, access, or number of parking spaces. These adjustments lead to new costs and additional delays.

Decreased profitability: Delays and successive modifications postpone the commercialization of properties and reduce the overall profitability of the project. In areas where objections are frequent, investors often become more cautious or even reluctant to commit.

How do project managers avoid these negative consequences?

To avoid delays and cost overruns related to objections, some project managers often have to deal with the opponents. The latter sometimes make "informal requests", such as financial compensation or a change to the plan, in order to defend their interests or to put pressure on the project manager.

According to a study, 23% of experts admit to often or almost always paying financial compensation, while 36% do so at least occasionally. Developers rarely choose to ignore these requests, as a refusal could lead to an official objection and considerably delay the project.

By agreeing to certain requests, developers thus manage to preserve the continuity of the project, to avoid an objection procedure, and to safeguard the investments already made in planning.

Potential positive consequences of objections for project managers

While objections sometimes slow down projects, they can also have positive effects on the real estate sector.

Increase in property value: By limiting the construction of new housing, objections help reduce the available supply while demand remains high. This imbalance can lead to an increase in property prices.

Objections push developers to review and improve their projects: better integration into the landscape, respect for distances, noise reduction, traffic management, or greater aesthetic concern. These adjustments often result in more harmonious, better accepted, and more sustainable constructions, which could then facilitate their sale.

Housing shortage and objections

Many residents in Switzerland are currently struggling to find housing. To meet the growing demand, it would be necessary to build faster and in greater numbers. According to projections by the firm Fahrländer Partner, more than 500,000 additional homes will be needed by 2040 to avoid a worsening of the crisis.

However, objections constitute a major obstacle to this goal. They slow down the completion of projects and, in four cases out of ten, lead to a reduction in the number of housing units built or in the planned living area.

In other words, these objections worsen the housing shortage: fewer apartments are built, which makes rents rise and increases pressure on the housing market.

Consequence: Everyone loses — project managers, facing costly delays, as well as people looking for housing in an already saturated market.

What to do as a project manager?

Faced with the risk of objections, project managers can adopt a more strategic and forward-looking approach:

• Avoid high-dispute areas: Some municipalities or neighborhoods are known for their frequent objections. It is better to identify them beforehand in order to assess potential risks and delays.
  
• Respect the built and natural environment: The height, width, or aesthetic integration of the building are among the most common grounds for objection. A project well integrated into its context has a greater chance of being accepted.
  
• Engage in dialogue with residents: Establishing early contact with the neighborhood often helps defuse tensions. Presenting the project, listening to concerns, and adjusting certain details can prevent a formal objection from being filed.

Negative impacts of objections on the real estate sector

Objections affect not only developers or project managers, but also have large-scale repercussions on the entire real estate sector.

Slowdown in real estate production: Authorization procedures are getting longer, delaying the release of new housing to the market. This slowdown contributes to worsening the housing shortage, especially in already tense urban areas.

Increase in construction costs and sale prices: Administrative and legal delays generate additional expenses (interest, fees, fixed costs). These extra costs are often passed on to buyers or tenants, fueling the rise in prices.

Discouragement of investors: The uncertainty linked to objections makes some projects more risky. This could slow down investment in municipalities or regions perceived as too restrictive.

Rigidity of the real estate market: Approval times limit the sector’s ability to respond quickly to demand, especially for student, social, or mid-range housing.

Increased burden on public authorities: Processing objections requires significant administrative resources.

Positive impacts of objections on the real estate sector

Objections do not produce only negative effects: they can also stimulate the quality and responsibility of the real estate sector.

Improvement of urban and architectural quality: Objections encourage developers to design more careful projects, respectful of heritage, local aesthetics, and the environment. By better harmonizing with the existing built environment, buildings become more attractive to buyers or tenants, which can facilitate their sale or market launch.

Scarcity of new constructions: This creates upward pressure on real estate prices. This situation could benefit developers and investors, who may manage to sell available properties at higher prices, since demand remains greater than supply.

Possible solution

A commonly discussed approach consists in limiting the circle of people authorized to file an objection. Only those persons directly and particularly affected by a project — for example, those whose private interests or property are actually impacted — should be entitled to oppose it. This would prevent all people simply living within the project area from being able to block or delay a construction without any concrete reason.

Conclusion

• According to a study, appeals and objections today represent the main obstacles to the construction of new housing in Switzerland.
  
• Strong opposition can be observed to many real estate projects, which slows down production and worsens the housing shortage.
  
• The experts consulted identify appeals as a major obstacle to the development of new housing.
  
• Recommendations suggest limiting access to appeals to persons directly concerned by the projects.
  
• Reforms are necessary, as the real problem arises when objections become abusive and block projects that are nevertheless essential.

Sources

jura.ch - Article
admin.ch - Article
uspi-vaud.ch - Article
letemps.ch - Article
watson.ch - Article
baumeister.swiss - Article
latele.ch - Article
25heures - Article
rhonefm.ch - Article