PPE definition: condominium ownership in Switzerland
PPE, or condominium ownership under Swiss property law, is a specific form of co-ownership that gives you an exclusive right to a defined part of a building, for example an apartment, while making you a co-owner of the common parts. In other words, you are not only buying a home: you are also buying a value share in the entire building, with shared rights, obligations and costs.
PPE definition: what you actually own
The PPE definition is often misunderstood, because it does not correspond to fully independent ownership such as a detached house. In PPE ownership, you have an exclusive right over certain parts of the building, usually your apartment, sometimes a cellar, a room or a parking space if these elements are included as private-use parts.
But you also own a share of the common elements: land, roof, façade, staircase, lift, main pipes, load-bearing structure, heating room, technical rooms or outdoor facilities. This allocation between private-use parts and common parts is central, because it determines what you may alter freely and what depends on a collective decision.
The definition of condominium ownership can therefore be summarised as follows: you are the exclusive owner of your unit, but a co-owner of the building in which that unit exists. This exact combination makes PPE different from simply renting an apartment, but also different from owning a detached house.
Co-ownership definition: why the value share matters
To understand the co-ownership definition in real estate, you need to look at the value share, often expressed in thousandths. This value share represents your economic share in the building. It generally influences your contribution to common charges, maintenance costs, major works and sometimes your weight in certain decisions.
An overly simplified definition of co-ownership would say that several people jointly own the same property. With PPE, it is more precise: each co-owner owns a fraction of the building and benefits from an exclusive right over a clearly defined part. This distinction matters when buying property, because two apartments with comparable floor areas may have different value shares depending on their location, relative value, annexes or the structure of the building.
Before buying, you should therefore check not only the price of the home, but also the value share, the method used to allocate PPE charges, the PPE regulations, the minutes of owners’ meetings and the condition of the renovation fund. These documents often give a more accurate picture of the real financial risk than simply viewing the apartment.
PPE definition and impact on your mortgage loan
As part of a mortgage loan, the bank does not only look at your income and equity. It also analyses the financed property. For PPE, this means that the lender takes into account the value of the unit, the general condition of the building, the possible existence of major future works, the level of charges and the quality of the co-ownership management.
A PPE apartment in a poorly maintained building can be a problem, even if the apartment itself appears to be in good condition. A façade to renovate, an ageing roof, a lift to replace or an insufficient renovation fund can lead to significant additional contributions after the purchase. These costs are not always part of the purchase price, but they can affect your budget and therefore your affordability.
Use our mortgage calculator to simulate your property financing.
This is where the definition of PPE becomes concrete for the buyer: you are financing an apartment, but you are also assuming part of the technical and financial fate of the entire building. For a property loan, this reality can influence the bank’s valuation, the required safety margin and your own financing strategy.
