80 per cent of the growth in the canton of Zurich must take place in urban areas and 20 per cent in the surrounding landscape, according to an article written by Stefan Hotz published in the Neue Zürcher Zeitung. 

There is also a surplus value compensation that applies when land is given a new designation and thus gains in value. The compensation covers 20 per cent of the increase in value – and this model must be implemented by 2019, otherwise the federal government may suspend re-zoning.

Zurich plans to use urban development contracts to implement this compensation. Investors will not have to pay the surplus value fee, but they must commit to building open spaces, recreational facilities and public services. The precise conditions will be negotiated individually, creating opportunities for the canton but also uncertainties, explains Holz.

“For quality in urban planning, it is always better and more efficient if property owners and representatives of the local community sit down at the same table and find a solution of mutual interest,” wrote Hotz. 

Setting out ‘exit options’ could also prevent a situation of coercion from arising.