Solothurn Relies on Building Rights for Vacant Properties

The canton of Solothurn plans to increasingly transfer real estate that is not essential to its operations under building lease agreements. In doing so, it shifts renovation risks to third parties, while retaining ownership of the land and securing ongoing income from building lease payments.

The Canton of Solothurn plans to rely on building rights for properties that are not essential to its operations. Instead of continuing to own and renovate residential properties and specialized buildings in need of renovation, third parties will take over the buildings, invest in them, and cover the maintenance costs. The canton will retain ownership of the land and, in return, secure recurring income.

The decision represents less a traditional sale than a reorganization of the canton’s financial assets. This is relevant for the real estate market because it potentially makes properties with a backlog of necessary investments accessible to municipalities, cooperatives, or private entities. At the same time, the canton is systematically shifting future renovation and operational risks out of its own budget.

Land Remains with the Canton
According to available information, the Solothurn government has decided to gradually transfer properties that are not strictly necessary for government functions under building rights. Each individual transaction is to be submitted separately to the cantonal government. Affected tenants and municipalities are to be involved at an early stage and given the opportunity to participate in the future use of the properties.

In doing so, Solothurn is choosing an approach that is becoming increasingly attractive in the public sector: The land remains in state ownership in the long term, while the capital required for renovation and management is transferred to the leaseholders. Particularly for older residential buildings and specialized structures, this can lower the barrier to reactivation, provided that the terms of use, lease term, and interest rates are structured in a sustainable manner.

Financial Pressure Shapes the Course
This move fits into a context in which the canton must tighten its financial constraints. In its integrated tasks and financial plan for 2026 to 2029, Solothurn refers to the ongoing action plan and persistent pressure to cut costs. The new real estate strategy is thus also a fiscal policy tool: funds that no longer flow into peripheral properties are to be freed up for real estate serving core government functions, such as education, sports, and public safety.

The focus now is less on the direction and more on implementation. The decisive factors will be which properties actually come onto the market, under what conditions building rights are granted, and whether municipalities or institutional entities can turn them into viable development projects. For Solothurn, this could lead to a new arrangement between public land ownership and private or nonprofit investment activity.