What effects does the Second Homes Act have on real estate in Grisons?

The 3-point orientation

The Second Homes Act in Grisons limits the construction of new freely usable holiday homes in municipalities with more than 20% second homes. As a result, existing old-law apartments and approved holiday homes are becoming scarcer and often more valuable. At the same time, there are more first-home requirements, restrictions on new buildings and more complex inspections when buying. Tourist markets such as Davos, St. Moritz, Arosa, Flims, Lenzerheide and the Engadin are particularly affected.

The principle: The Second Homes Act limits new holiday homes

The Second Homes Act was introduced to limit the proportion of holiday and second homes in tourist communities. In municipalities with a second home share of more than 20%, new freely usable second homes may generally no longer be approved. The aim is to slow down urban sprawl, strengthen town centers and reduce so-called cold beds.

This rule is particularly important for Grisons. The canton has many well-known holiday resorts where second homes have played a major role for decades. These include Davos, St. Moritz, Arosa, Flims, Laax, Lenzerheide, Pontresina, Samedan, Scuol and many other mountain communities.

As a result, the real estate market is more divided into different categories. There are first homes, second homes, old-law apartments, tourist-managed apartments and apartments with restricted use. For buyers and sellers, this classification is often just as important as location, area or condition.

Existing second homes are becoming scarcer and more valuable

One of the most important effects is scarcity. When new freely usable holiday apartments can no longer be built in a municipality, the existing inventory becomes more important. In particular, old-law apartments that already existed or were approved before today's rules can continue to be in high demand.

This applies in particular to well-known holiday markets. An existing holiday apartment in St. Moritz, Davos or in the Engadin can be more valuable than a comparable apartment with a first home requirement. The reason is simple: Anyone who is allowed to freely use an apartment as a holiday home owns a scarcer asset.

This scarcity can support real estate prices in Grisons. Properties with a good location, views, proximity to mountain railways, underground parking, balconies or high-quality finishes remain in high demand. At the same time, this does not mean that every second home is automatically expensive. Condition, service charges, renewal fund, rentability and microlocation remain decisive.

New buildings receive first-home requirements more frequently

The effect is particularly obvious in new buildings. In municipalities above the 20% limit, new apartments can often only be built as first homes. This means: They must be used as a main residence and may not be freely sold or used as a holiday home.

For project developers, this changes the calculation. In the past, holiday apartments in tourist towns could often be sold to foreign buyers at high prices. Today, this market is severely restricted in many municipalities. New construction projects must be geared more towards the local population, workers, families or people with their main residence.

For buyers, the first home requirement is central. Such an apartment can be more attractively priced than a freely usable second home, but is less flexible. Anyone who wants to sell later only appeals to buyers who can meet the residence requirements. This can influence demand and resale value.

Touristically managed apartments as a special case

The Second Homes Act is not an absolute construction ban. In municipalities over 20%, tourist-managed apartments can continue to be built under certain conditions. However, these cannot simply be used as private holiday homes. They usually have to be professionally leased or integrated into a tourist business concept.

This model may be of interest to investors because it enables new construction even in restricted communities. At the same time, it is less free to use. Owners are often unable to use the apartment themselves at will, but must comply with leasing, management and operational requirements.

For buyers, caution is therefore important. A tourist-managed apartment is legally and economically different from a classic holiday home. Return, personal use, administrative costs, capacity utilization, operator contract and resale must be carefully examined.

Price difference between first and second homes

In many Graubünden holiday resorts, there is a significant price difference between freely usable second homes and apartments with a first-home requirement. A second home may be of interest to buyers from Zurich, Basel, abroad or other cantons. A first home, on the other hand, is aimed at people who actually live locally.

As a result, the demand base varies. Freely usable holiday homes often have a wider and more solvent base of buyers. First-time homes are important for the local market, but may be more limited in price because local income and affordability play a stronger role.

For sellers, usage status is therefore a decisive selling point. It is a risk factor for buyers. Anyone buying a supposedly cheap apartment should check whether it is really freely usable or whether a usage restriction explains the value.

Effects on older houses and conversions

The Second Homes Act not only concerns new buildings, but also conversions, expansions, replacement new buildings and changes in use. The legal situation can be complex, particularly in the case of older houses, stables, rustici or apartments in village centers.

There is often more freedom in the case of old-law apartments. However, expansions, demolitions or replacement new buildings can trigger restrictions. Anyone who buys an old house in Grisons and wants to convert it into a large holiday apartment should therefore involve the municipality, building authorities and specialists early on.

This point is important for the market. Some older properties have a favourable effect because their use or expansion is legally restricted. Others are valuable because they offer free use as old-law dwellings. The legal status can strongly influence the price.

More pressure on the rental and primary home market

One aim of the law is to secure more living space for the local population. This is particularly important in tourist areas because employees, families and locals often have trouble finding affordable housing. New first-time homes should help strengthen the first-home market.

In practice, the effect is mixed. Although the law prevents many new holiday homes, it does not automatically solve the problem of affordable housing. Construction costs, land prices, demand, return expectations and scarce construction zones remain strong price drivers.

Nevertheless, the law changes the project logic. Municipalities and developers must consider more carefully which apartments are being built for locals, workers and permanent tenants. This is important for holiday resorts in the long term because hotels, restaurants, mountain railways and services depend on local workers.

What buyers in Grisons need to check

Anyone wishing to buy a property in Grisons should clarify the second home status before making any reservation payment. The municipality, second home share, year of construction, building permit, land register, usage requirements, condominium regulations and any rental obligations are important.

The question is particularly important: Can the apartment be freely used as a second home? Or is it a first home, a tourist-managed unit or a property with a special edition? This examination should be carried out in writing, ideally by the municipality, notary office or a specialist.

Banks are also interested in usage status. A freely usable holiday apartment, a first home and a tourist-managed property can be valued and financed differently. Banks often require more equity in the case of holiday apartments and check the affordability more rigorously.

What sellers should consider

For sellers, transparency is crucial. The usage status should be clarified and documented early on. A second home under old law in a good location can be a strong selling point. An apartment with a first home requirement, on the other hand, must be positioned differently.

Anyone who conceals the status or makes it unclear risks subsequent conflicts. Buyers are becoming increasingly sensitive because the Second Homes Act can significantly influence the value. Clear documents create trust and speed up sales.

Status also plays a major role in price negotiations. A freely usable holiday apartment in Davos or St. Moritz can justify a significant additional charge. A conditional apartment, on the other hand, must be geared more realistically to the local primary home market.

Common misconceptions

A common mistake is the assumption that you are no longer allowed to buy a holiday home in Grisons. That is not true. Existing, freely usable second homes can still be bought and sold. In particular, the construction of new second homes in municipalities of over 20% is restricted.

A second misconception is that every apartment in a holiday community is automatically freely usable. That is also wrong. Many newer apartments have a first home requirement or special usage regulations. The specific object status is decisive.

A third misconception concerns prices. The law doesn't make all real estate more expensive. It makes certain properties scarcer, in particular freely usable second homes in prime locations. Other properties, such as first homes or houses in need of renovation subject to conditions, may be assessed differently.

Conclusion: The Second Homes Act makes the Graubünden market scarcer and more complex

The answer to the question What effects does the Second Homes Act have on real estate in Grisons? means: It shortens new freely usable second homes, strengthens the value of existing holiday homes and makes the usage status of a property a central pricing factor.

In tourist communities with more than 20% second homes, new holiday homes may generally no longer be freely approved. As a result, old-law apartments and existing second homes are becoming particularly important. At the same time, there are more first-home requirements, special tourist models and legal audit requirements.

The following applies to buyers and sellers: In Grisons, it's not just location, view or price per square meter that counts. It is also decisive whether a property is considered a first home, a second home, an old legal property or an apartment managed by tourists. Anyone who thoroughly checks this point avoids expensive mistakes and can realistically assess the market.

Glossary on the Second Homes Act in Grisons

Second Homes Act: Federal law that severely restricts new second homes in municipalities with a share of more than 20% second homes.

Share of second homes: Proportion of apartments in a municipality that are not considered as first homes or equivalent apartments.

Old legal apartment: Apartment that legally existed or was approved before today's second home rules and can often be used more freely.

First home requirement: Restriction of use, according to which an apartment must be used as a main residence.

Touristically managed apartment: Apartment with a special rental or operating concept that cannot be freely used as a private holiday apartment.