Off-plan vs existing property: comparing the advantages for 2026

At Millenium Properties, more than 15 years of experience in the Geneva property market allow us to support buyers through this specific process every day.
Let us look together at the finer points of buying off-plan, its advantages and how to compare it carefully with buying an existing property.

What is buying off-plan?

Before turning to the comparative advantages, it is essential to understand exactly what buying off-plan involves and what its specific features are, both legally and financially.

Definition and process

Buying off-plan, also known as VEFA (Vente en l’État Futur d’Achèvement, sale of a property yet to be completed) in Swiss law, means acquiring a property that has not yet been built or is under construction. In practice, the buyer commits to purchasing a home on the basis of plans, technical specifications and models, before it is physically completed.
The off-plan purchase process generally follows several key stages:

1. Reservation: Signature of a reservation contract together with a deposit (generally 5 to 10% of the total price)
2. Signature of the sale contract: A notarised deed before a notary that formalises the transaction
3. Staged payments: Progressive payments according to the progress of the works
4. Handover: Handover of the keys after completion and inspection of the property

In Geneva, the average time between reservation and actual handover generally ranges from 18 to 36 months, depending on the scale and complexity of the project.

Legal aspects

Legally, buying off-plan in Switzerland benefits from a regulatory framework that protects the buyer. The Code of Obligations (notably articles 227 to 236) strictly governs this type of transaction in order to protect the buyer.
Key legal points to know include:

• The preliminary contract must contain precise and detailed information on the property (floor area, fittings, materials used)
• The payment schedule is strictly regulated and tied to the actual progress of the works
• Completion guarantees (bank guarantee or insurance) are mandatory to protect the buyer should the developer default

It is important to note that Geneva legislation imposes additional rules, notably rent controls for new homes located in a zone de développement (development zone), a point for investors to consider.

Financial aspects

Financing an off-plan purchase has specific features that must be taken into account in your financial plan:

• Staged financing: Unlike buying an existing property, where payment is generally made in one go, buying off-plan allows payments to be spread over a pre-agreed schedule
• Construction loan: Banks offer specific products for this type of purchase, with funds released in line with the progress of the building works
• Reduced notary fees: In Geneva, notary fees are calculated only on the value of the land, not on the construction to come, which represents a significant saving (around 1 to 2% of the total price)

According to recent Geneva market data, the equity required for an off-plan purchase is generally between 20% and 25% of the total price, a level comparable to that required for an existing property.

The advantages of buying off-plan

Buying a new property off-plan offers many advantages, which explain its growing appeal on the Geneva property market.

Potential savings

One of the main arguments in favour of buying off-plan lies in the financial savings that can be made:

• Optimised purchase price: On average, for the same floor area and in the same neighbourhood, off-plan properties are offered at slightly lower prices than equivalent completed properties, with a discount of up to 5 to 10%. This difference reflects the expected gain in value on handover and the perceived risk of buying a property that does not yet exist.
• Reduced transfer costs: As mentioned above, registration duties and notary fees are calculated only on the value of the land, generating a substantial saving.
• No works in the short term: A new property will not need renovation for several years, unlike an older property, which can quickly lead to additional costs.
• Energy performance: New buildings comply with current energy standards (HPE or THPE in Geneva), generating significant savings on running costs. According to estimates by the OCEN (Office Cantonal de l’Énergie), a new flat uses on average 60% less energy than a home built before 2000.

Our experience at Millenium Properties shows that, taking all these factors into account, the overall saving can amount to between 8% and 15% over the first ten years of occupation.

Personalising the property

A distinctive advantage of buying off-plan is the possibility of personalising your future home:

• Interior fittings: In most new developments, the buyer can choose the finishes (floor coverings, tiles, colours), the bathroom fittings and sometimes even modify certain non-load-bearing partitions.
• Technical adaptations: It is often possible to include specific equipment from the construction stage (home automation, upgraded electrical installations, underfloor heating), thus avoiding more costly works later.
• Meeting current expectations: New developments generally include spaces suited to contemporary lifestyles (open-plan areas, large terraces, rooms for working from home).

According to a 2024 study by the Association des Promoteurs Constructeurs Genevois, the possibility of personalisation is cited as a decisive criterion by 68% of off-plan buyers.

Guarantees and protections

Buying off-plan comes with a set of legal guarantees that make the investment more secure:

• Completion guarantee (garantie de parfait achèvement): Lasting one year, it covers the repair of all defects reported at handover or appearing during the following year.
• Two-year guarantee: It runs for two years and covers the proper functioning of equipment that can be separated from the structure (radiators, shutters, doors, etc.).
• Ten-year guarantee: Covering defects or damage affecting the soundness of the building or making it unfit for its purpose, it runs for ten years from acceptance of the works.

In addition to these legal protections, the developer generally takes out specific insurance, such as Dommage-Ouvrage (building damage) insurance, which makes it easier to enforce the guarantees without having to establish liability if a problem arises.

Comparison: buying off-plan vs an existing property

To make an informed choice, it is essential to set the features of buying off-plan against those of buying an existing property.

Investment flexibility

Purchase timescales

• Existing property: The transaction can be completed quickly, generally within 2 to 3 months of the offer being accepted.
• Off-plan purchase: The process spans several years, from reservation to actual handover.

This difference in timing can be an advantage or a drawback depending on your personal situation. If you need a home immediately, buying an existing property will be preferable. Conversely, if you expect a change in your family or professional situation in the medium term, buying off-plan gives you time to organise yourself, while securing your investment in a market where prices tend to rise.

Value growth and liquidity

• Existing property: Its value and resale potential can be assessed immediately, with a price history for the neighbourhood.
• Off-plan purchase: The potential gain in value on handover can be significant, particularly in developing neighbourhoods.

According to Geneva market data compiled by Millenium Properties, properties bought off-plan between 2020 and 2023 rose in value by an average of 12% between reservation and the first year after handover. This increase is explained in particular by the difference between the initial purchase price and the market value of a completed new property.

Visibility of the finished product

• Existing property: What you see is what you get, with no surprises.
• Off-plan purchase: Despite increasingly sophisticated 3D visualisation tools, some uncertainty remains as to the final result.

Comparison table of costs and advantages

This summary table highlights the fundamental differences between the two options. It is important to note that these figures are averages observed on the Geneva market and may vary according to the specific project.

Conclusion

Buying off-plan is a particularly attractive option in the current Geneva property market. It offers a range of financial, technical and legal advantages that make it a relevant alternative to buying an existing property, particularly for those who can accommodate the delivery timescales.
In particular, it gives access to a personalised property that meets the latest energy standards and benefits from extensive guarantees, often for an optimised overall investment. The trade-off lies mainly in the waiting time and the need to picture yourself in a home that does not yet physically exist.
At Millenium Properties, our experience in supporting VEFA buyers allows us to say that a successful off-plan purchase rests on three fundamental pillars: a thorough analysis of the development and the developer, a clear understanding of the contractual documents, and rigorous monitoring of the construction stages through to handover.
Whether you are looking for your main residence or a buy-to-let investment, our specialist advisers are available to help you determine whether buying off-plan suits your project and your long-term objectives, and to support you at every stage of this specific process.