The Franz Weber Foundation and Helvetia Nostra pioneered the initiative, which they believe–despite the economic challenges–is needed to preserve Switzerland’s natural beauty from overbuilding.

The version of the law that was implemented in March 2015 is the result of a compromise between Vera Weber, leader of Helvetia Nostra, and political representatives. The law passed successfully through both houses of parliament with little opposition, after a working group spent three years ironing out the kinks in the law’s wording.

Back to the Future Past
Writing the legal specifics was not an easy process. Conflicts abounded, namely the date the law should go into effect, and the fate of construction permits that had been issued in the race to the original vote.

The Swiss Federal Court decided Lex Weber would go into effect the date voters approved the controversial measure to limit holiday homes to a maximum of 20 % of a commune. All communities must now present a yearly report to the federal government specifying totals of primary and secondary residences.

This superseded the implementation date of 1 January, 2013 named earlier by the Administrative Court in Canton Graubünden. Graubünden’s court had ruled that this date was implied, since the initiative did not specifically state that it was due to take effect immediately. That ruling was the first regarding the initiative, and as such it was widely assumed it would prove applicable in other cantons as well.

The result was a win for Helvetia Nostra and the Franz Weber Foundation–and a big step back for opponents. It effectively stopped all construction on secondary residences with permits issued 11 March, 2012 and beyond. Hundreds of cases were still waiting to be reviewed by the courts when the law was written into the books in this spring. With the law now on the books, many of them have been dropped accordingly, while other claimants continue to uphold their suits and seek construction approval.

New Restrictions and Tourism
The new restrictions on the construction of holiday homes will impact the majority of Switzerland’s alpine tourist destinations. Bern is one of five cantons which will be most affected, along with Vaud, Ticino, Valais and Graubünden; Saanen is among 440 communities now facing an uncertain future.

Some political representatives have voiced negative views, including Bernese government official Christoph Neuhaus, who stated in an SRF1 interview that Canton Bern's business and tourism development has once again been hampered.

Nearly half of all dwellings in the Saanenland, 49 per cent, are second homes. The local economy relies heavily on the business generated by the building and maintenance of these homes, as well as the money that the homeowners pour into the community while present. Some local restaurants, stores and businesses are starting to feel the pinch and the loss of this critical revenue does not sit well with residents. Coupled with a decline in tax revenues, the effect of the second home initiative is already proving a challenge for the Gstaad area.

One local builder is optimistic though.

“Despite the fact that we will build fewer second homes, there are still many renovations to be completed in the next decade,” says Hans-Peter Zingre, owner of Zingre Chaletbau in Saanen, “and that will keep Zingre Chaletbau very busy.”

Where There's a Will, There's a Loophole
Finding a way around the restrictions will prove extremely difficult. That said, there are certain loopholes.

For example, the law permits turning historic-classified structures into second homes. A grange could be fully renovated and transformed for housing purposes, while a hotel would not benefit from this same permission.

Under Lex Weber, only hotels which are no longer profitable may be renovated and turned into secondary residences. Even so, a maximum of 50% of the hotel may be converted. Another hotel scenario is possible: If a hotel is more than 25 years old and financially unviable, the community could classify it as a historic structure, and then designate it a secondary residence.

Another loophole that homeowners may take advantage of: Adaptation of existing first homes into second homes is permitted. So, an owner could technically turn his primary residence into a secondary residence, and then proceed to build a new first home on the same property.

Home size is also not an issue in the new law; second homes are counted by residential unit and not by the total of square metres. Additionally, existing second homes have been granted permission to expand 30 % in size.

City Vs Country
Not surprisingly, Lex Weber proved significantly more popular among urban voters rather than those living in rural communities. For those who live and work in Switzerland’s alpine villages, the beauty of the land may not be the most important factor to consider. Many Saanenland locals believe Lex Weber will jeopardize not only the construction and tourism industries, but also the entire social fabric of the region.

"There was little fighting back against the measure in 2012 because nobody honestly thought it would pass," says Elisabeth Wampfler, architect and urban planner with Jaggi & Partner (read GSTAADLIFE's June edition for a full interview). "I think many voters, especially those in urban areas, were not aware of the damage it might cause in rural or alpine locations."

But for some in the Saanenland, ignorance is not always bliss.

“The new law restricts property rights and already has serious negative effects on the economy in mountain communities,” states lawyer and notary David Matti of Matti & Matti in Saanen, who also serves as president of the Saanenland Chamber of Commerce. “Parts of the real estate and construction branch have been paralysed since the vote, and the longer this situation goes on, the stronger the negative effects.”

Real State of Real Estate
Besides the construction sector, one would imagine real estate agencies are also suffering from the new law. There are a whopping 25 to 30 real estate agencies in the Saanenland, for whom home sales are an important part of their turnover. Yet when asked about the health of the property market, two very different stories are heard. One, that real estate continues to thrive in Gstaad, and the other, that Lex Weber has hurt business.

Martin Göppert of Consulta Gstaad GmbH, an independent broker in the region for the past two decades, believes Lex Weber, among several issues, has contributed to a decline.

“Since the referendum at least three property brokers in Gstaad have ceased activity or have gone bankrupt,” says Göppert. “A couple of others have given up their corporate identity, partnered with other firms, or were purchased by competitors.”

Happy Ending?
Fortunately the law is not written in stone; if economic disaster ensues in rural communities, the issue still may someday be overturned or modified, suggests Matti. Whether the law’s effect on communities like the Saanenland is as deleterious as its opponents predict, it's clear that the heart of the issue is an on-going battle between urban and rural regions of the country.

While the majority of Saanenland residents say they're unhappy with the law, the period of uncertainty is over–at least for the time being.

“Let’s be honest,” quips Matti, when comparing earlier versions of the law to the one currently approved, “it could have been much worse.”