How Lex Weber Affects Property Supply

The supply freeze

Before Lex Weber, developers in Swiss resort areas could build new secondary residences — holiday apartments, chalets and villas — to meet demand from Swiss and international buyers. This supply pipeline has been effectively closed in restricted municipalities since 2016.

In Montreux, which exceeded the 20 percent threshold before the law came into force, no new secondary residences have been added to the market since 2016. The total stock of secondary residences is fixed at the level it was when the law took effect.

Impact on prices

The supply freeze has been a significant factor in supporting property values in Montreux. With no new secondary residences entering the market, demand from buyers — both Swiss and international — must be absorbed by the existing stock. This structural supply constraint has contributed to price resilience and, in many segments, price appreciation.

Properties that combine secondary residence status with Foreign Buyer Eligible status under Lex Koller are particularly scarce. They represent a double-constrained supply: limited by Lex Weber on the supply side and by Lex Koller on the demand side (only eligible buyers can purchase them).

New construction alternatives

Developers in restricted municipalities can still build new residential properties — but only if they will be used as primary residences. Some developers have responded to Lex Weber by building primary residence apartments in Montreux, which can be sold to buyers who intend to live there.

There is also a limited category of new construction permitted under Lex Weber: "tourist accommodation" (hébergement touristique) — properties that are rented out commercially through a professional operator. These are distinct from private holiday homes and are subject to specific conditions.

Implications for buyers

Buyers seeking a secondary residence in Montreux should understand that they are competing for a fixed pool of properties. New inventory does not enter the market through construction. The available stock turns over only when existing owners choose to sell.

This market dynamic rewards buyers who are well-prepared, have access to off-market opportunities, and can move quickly when a suitable property becomes available. Working with a specialist agent who has deep local market knowledge is particularly valuable in this environment.

Key points

• Lex Weber has frozen the supply of secondary residences in Montreux since 2016
• No new secondary residences can be built in restricted municipalities
• Fixed supply combined with consistent demand supports property values
• Foreign Buyer Eligible secondary residences are doubly constrained in supply
• New construction is limited to primary residences and tourist accommodation