Engel & Völkers
  • 5 min read

Renovation or New Build? How to decide correctly

Von der Planung zur Umsetzung: Ihr Weg zur sanierten oder neuen Immobilie

Old properties often exude a certain charm which some prospective buyers cannot resist. Especially in the case of old buildings, however, sooner or later the question as to whether they can still be renovated or whether a new build is the appropriate option cannot be avoided. A renovation can cost a pretty penny. At times, the cost of reconstructing old properties may even exceed the price of a new build.

The task here is to weigh up the pros and cons of such a project and evaluate all the options for implementation. This raises questions such as: What condition is the property in and can energy consumption be reduced as part of a renovation or is a new building more efficient? What about the financing of a new building or what are the renovation costs of an old building?

Our guidebook will provide you with all the necessary information. Your local Engel & Völkers consultant will be happy to help you with further questions or can recommend specialized experts.

The right schedule for renovation / new build

It is extremely important that the individual work steps are recorded in a precise schedule, to prevent unwelcome surprises such as waiting times or cost overrun due to unforeseen additional works, etc.

Whether the project is a new built or a renovation, the chronology of the individual work processes should be captured in a schedule. Every measure alters the building system as a whole, especially during renovation.

Renovation schedule

One principle should be considered in every case for each renovation: Renew from the exterior to the interior. These are possible measures for individual building components.

Schedule for new build

For a new build, the same principle that a detailed schedule identifies the individual phases of the building progress in the correct order applies. The building measures can basically be divided into six stages: Pre-project, planning application, implementation project/building permit, shell construction, interior construction, as well as handover.

Building permit for renovation or new build - When must a permit be applied for?

The planning application is an important step for the successful implementation of the building project. It is important to clarify beforehand which official measures must be taken and which documents must be submitted. In particular where listed buildings are concerned, the stipulations for the renovation of historic structure of the building must also be taken into account. Yet the question also arises whether an application for a building permit is necessary in the first place?

Many refurbishments and repairs do not require building permits. If the measures are, however, more extensive, accompanied by a change of use, changing the statics, or affect the fire safety, generally speaking an application for a building permit must be submitted. Examples could be:

  • Heat pump with geothermal probe

  • Removal or relocation of load-bearing walls

  • Changes in use (e.g. conversion of a commercially used building to dwellings)

  • Change of the building shell (facade material, window shapes, etc.)

For refurbishments (in particular, also for new builds), certain constructional constraints are placed by the building regulations and zoning ordinances, the cantonal planning and building laws, as well as the regulations on land use planning for environmental protection. On sloping sites, it is also always worth having a look at the hazard map, which shows underground running waters, which also require specific minimum spaces.

If a building is listed or it is in the register of objects to be protected (Land register of the limitations of property rights imposed by public law, see cantonal geo-portals of the land registry offices), a curator of monuments should be consulted at an early stage. A preservation order may, among other things, specify the colour of the house facade or the roof, and which materials are to be used.

  • Note

    In the case of complex building projects, it is recommended to make a construction application with the building authority beforehand, to establish if the project can be considered for approval on the part of the community.

Implementation of renovation work and new buildings - the most important steps at a glance

Design

The implementation of the planned building project can begin once the building permit has arrived. The implementation can start when all detailed plans have been drawn up and the contracts (work contracts) have been awarded to the contractors. During this intense time, in particular, it is beneficial to have the assistance of a site manager, who stays on top of things, coordinates the works, and ensures their structural quality. He will also be aware how to avoid planning errors and building defects.

Building works

During the building works, various work processes must work together well, so that all is going according to plan. In particular, bad weather, overworked workmen, or supply bottlenecks for materials may cause delays. It is therefore of vital importance to be able to react quickly if such deviations from the building programme emerge, to handle the delays pragmatically. This is where the site manager is able to intervene quickly and with expert knowledge. But the client will be involved in the building project on a regular basis in this phase, so that any detailed decisions can be made quickly and without red tape, so preventing time delays.

  • Note

    It is imperative to obtain several tenders for the work to be contracted out. This way, the tradesman with the best price-performance ratio can be chosen. The client should never give instructions to tradespeople directly, even if asked, because he will rarely be able to assess the consequences of such decisions. They may potential trigger the need for further works which were not planned or included in the budget.

Handover

Upon completion of all works, the handover to the client takes place. At that time, it is paramount to carry out a detailed building inspection and record any defects that need to be subsequently remedied. The final account ultimately rounds off the building project. Should there be any further defects or incomplete work that come to light after moving in, it is worth reporting these to the architect. This is to ensure that the latter retains an overview and that work, which was initially offered to be carried out, is not subsequently charged for.

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Engel & Völkers Switzerland

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6300 Zug | Switzerland

Tel: +41 41 500 06 06