How Leasehold and Building Rights Are Reflected in the Property Advisor

Introduction

In this article, you will learn where you can display leasehold (Germany) and building rights (Switzerland) information in your dossier.

⚠️ Please note: This article specifically applies to the regions Germany and Switzerland.

Table of content

1. Creating a property with leasehold (Germany)
2. Creating a property with building rights (Switzerland)
3. Helpful notes

1. Creating a property with leasehold (Germany)

In principle, you can create “leasehold” as a parameter - however, this is only available for the property type “house.”
 

You can specify whether the property is being sold with leasehold or not. Additional details, such as the remaining term, cannot be recorded directly — however, you can include this information in the description.

The individual factors influencing the valuation of such properties are still under development and not yet fully finalized. We will continue to enhance and improve how leasehold impacts the market price estimation, which will be reflected in the results. For now, the effect on the market price estimation may not fully align with your own market knowledge.

We are happy to receive your feedback regarding the price estimation of a property with leasehold at support@pricehubble.com.

2. Creating a property with building rights (Switzerland)

Requests to consider building rights — particularly from the regions of Bern and the left shore of Lake Zurich — are something we receive regularly in Switzerland. Our detailed data analysis has shown that there are currently no uniform, clearly defined specifications to reliably integrate this feature into our tool.

Building rights are highly complex in their structure: the value reduction depends largely on the individual contract terms, which can vary significantly between grantors and projects. Factors such as contract duration, interest rate arrangements, or links to reference interest rates have a direct and sometimes substantial impact on the valuation.

A flat-rate calculation, for example using a fixed percentage deduction, would not adequately reflect this complexity. For an accurate valuation, a qualified expert must always review the building rights contract individually.

3. Helpful notes

Regardless of whether it is building rights or leasehold, you can document the impact manually:

• Add your own valuation to the dossier and note the amount or deduction in the comment field. This makes it transparent by how much the price is reduced. You can find instructions on how to add your own valuation in the article Understanding the Overview section of a Dossier.

• Additionally, create a custom field “Building rights / Leasehold” under the property parameters. More detailed information on creating custom / new fields can be found in the article Creating a Property Advisor Dossier.

This value has no impact on the market price estimation. You can add further explanations either in the price strategy section or in the description field of the dossier.