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Old 02.01.2021, 17:17
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Profit margin on swiss building projects? Become a successful "Bauherren"

I see alot of housing construction around Zürich. Often big concrete blocks where you can get an apartment in a large building for around a million chf. Why is so much built in concrete only and how much profit margin are these construction companies making when selling apartments they just build?


I wanted to get into real-estate later one day but not sure what type of constructions make the most profit.
Also, I don't wanna buy an apartment if these contraction companies are making tons of profit on "normal" housing buyers. I might consider going together with a group and build my own project and maybe make some profit. Not sure how easy this is.

Would like the be a "bauherren" one day but not sure how you get there seems like these guys are swimming in money. Anyone that has achieved this and can give some tips on the way?

Ps. I find these concrete blocks rather horrible to live in. Much rather prefer some older wooden contractions.
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Old 04.01.2021, 12:35
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Re: Profit margin on swiss building projects? Become a successful "Bauherren"

1. Bauherr is the client, not the builder

2. "Flipping" property is discouraged in Switzerland, hence swingeing capital gains rates on sales within the first two years and only a taper over the next up to 20 years.
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Old 04.01.2021, 13:25
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Re: Profit margin on swiss building projects? Become a successful "Bauherren"

Do you want to be a builder (contractor), or developer (maybe this is what you mean by bauherren)?

I've been involved in some work financing projects in various countries.

The one main thing you need is connections. Especially so in Switzerland where there are rules for everything. Just imagine this- first you need to find a piece of land, greenfield or brownfield. If that is not hard enough, then you need to go through all the planning permission which could take years. The most successful mid-size companies have various connections to the local housing committees, etc. so that the process is smoother. The construction industry worldwide is corrupt, and in Switzerland it may look clean, but there's always some grease money or favours going somewhere.

I remember one project I looked at where I thought there could be some interesting apartments to buy. I saw that the best ones were already reserved, and as I had access to the names of the people involved, I could see that they were reserved by people very well connected to the local govt or local construction companies. I don't believe that there was any $$ involved, but definitely they built on a piece of green area that would normally be very "controversial", but much sought after as a location.
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