October 2025

By Jonathan, Partner at Plus Financement — exclusive interview

📰 Context: A Reform That Reshapes the Landscape

Switzerland has officially taken a historic step: voters approved the abolition of the valeur locative (rental value) and all tax deductions related to property renovations. In practical terms, this means homeowners will no longer be able to deduct renovation costs from their taxes.

This reform, set to be fully implemented by 2028, will significantly impact investment strategies, renovation planning, and the resale market.

In the short term, a clear trend is emerging : everyone wants to renovate or sell before the deadline. But medium-term effects could be very different.

To better understand this shift, we spoke with Jonathan Naegli, partner at Plus Financement, about how this vote will influence the Swiss real estate market, with a focus on Geneva.

📈 Until 2028: A Rush Toward Renovations

The removal of tax-deductible renovation expenses has created a short-term “now or never” effect. Homeowners now have a strong incentive to complete renovations before 2028, while deductions still apply.

👉 This will likely trigger a surge in demand for anything related to construction, renovation, and materials. Builders and contractors are expected to operate at full capacity until the reform takes effect.

This shift will also influence property transactions. Many owners may decide to sell sooner rather than later, allowing buyers to benefit from renovation deductions before they disappear.

In other words: older properties become more attractive today than they will be tomorrow.

⚠ After 2028: A Challenging Outlook for Older Properties

Once deductions disappear, the equation changes dramatically. With no tax incentive to renovate, homeowners may be less inclined to invest in upgrades, and buyers may increasingly prefer new-build properties that are modern, energy-efficient, and compliant with evolving regulations.

Likely outcomes:

Downward pressure on prices for older properties,
A slowdown in the construction sector,
And a potential rise in undeclared renovation work, as some may try to cut costs without tax benefits.

Economically and fiscally, the impact could be significant: lower VAT revenue, less declared activity, and an overall softer market.

♻ Cantonal Measures: The Last Variable

While the Confederation is eliminating the general deductions, each canton can still choose to maintain targeted incentives, particularly for energy-efficient renovations or renewable energy installations.

This will be a decisive factor. Without these incentives, homeowners will have little motivation to invest in sustainable upgrades, which would contradict Switzerland’s long-term carbon-neutrality goals.

For now, we’re navigating without full visibility: the coming months will reveal whether Geneva (and other cantons) will introduce smart transition measures.

🧭 Buy Now or Wait? The Big Question

Should buyers move now, or wait until after 2028?

Jonathan’s view is straightforward:

“In real estate, if you can buy, you should buy. Prices tend to rise over time.”

In other words: the right moment is when you are ready.

But he adds nuance:

  • If your goal is to buy a single-family home, do it before 2028. These properties are increasingly scarce and being able to renovate while deductions still apply is a clear strategic advantage.
  • If you prefer new, energy-efficient apartments, the post-2028 market may suit you better, with THPE-standard units and low operating costs aligned with future environmental norms.

💡 And What About Sellers?

For owners considering a sale within the next 3 to 5 years, timing is everything.

Today’s buyers are still motivated by the ability to deduct renovation expenses.

After 2028, this argument disappears, making the sale of older properties more challenging, though far from impossible.

In short: sell while deductions still exist; buy while the market remains active.

The 2024–2028 window may well be the most strategic period of the decade.

🧩 Final Takeaway

The Swiss property market is entering a unique transition period:

intense activity in the short term, followed by an inevitable rebalancing.

For homeowners, buyers, and investors alike, the next four years will be decisive.

More than ever, navigating this environment requires strategy rather than reaction.

And at GARY, we’re here to guide you through these complex choices, with clarity, expertise, and long-term vision.