Last updated: September 2026

Purchase group

In short: A purchase group is an association of private buyers who buy land together and build on it themselves, through an organiser, instead of buying apartments from a developer. The upside is potential savings; the downside is that risk shifts to the members.

In short

In a purchase group you are the developer, not the customer. You buy land together, hire an architect and contractor, and carry the costs and risks - without Sale Law guarantees, a guaranteed final price or a guaranteed delivery date.

The professional explanation

The organiser locates land, forms the group and manages the process for a fee; members sign a co-ownership agreement, buy the land, and contract a builder. Bank financing is provided to the group under dedicated project finance.

After several failed groups, the Tax Authority and Securities Authority tightened oversight: in many cases the deal is treated for tax as buying a finished apartment, and marketing is restricted.

Checks: organiser track record, the land's planning status (approved or "in process"), a realistic budget including contingency, a co-ownership agreement with exit and decision mechanisms, and bank finance.

Example from the field

A purchase group that bought Sharon land "in planning" waited years for plan approval while construction costs rose. Members wanting out found the co-ownership agreement made it hard.

Frequently asked questions

Should I join a purchase group?

Only on land with an approved plan, an experienced organiser, a conservative budget and a fair agreement - and only if you accept developer-level risk. The savings promised in marketing are not guaranteed in practice.

Related services

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