Sign in Subscribe
Housing

Switzerland Construction Market to Grow Amidst Government Investments and Renewable Energy Push

Strategic Insights

— 1 min read

The Swiss construction industry is poised to grow at a real rate of 1.8% in 2025, driven by investments in affordable housing, renewable energy, and transport infrastructure. The government projects a significant housing deficit by 2040, requiring over 500,000 new affordable housing units. Switzerland's photovoltaic capacity is expected to expand from 9.2GW in 2024 to 15.2GW by 2026, indicating a substantial shift towards renewable energy. However, the industry may face short-term challenges due to budget cuts, terminated infrastructure projects, and trade tariffs.

Key Takeaways:

  • The Swiss construction industry is expected to grow at a real rate of 1.8% in 2025, driven by investments in affordable housing, renewable energy, and transport infrastructure.
  • The government projects a significant housing deficit by 2040, requiring over 500,000 new affordable housing units.
  • Switzerland's photovoltaic capacity is expected to expand from 9.2GW in 2024 to 15.2GW by 2026, indicating a substantial shift towards renewable energy.
  • The construction industry may face short-term challenges due to budget cuts, terminated infrastructure projects, and trade tariffs.
  • The Swiss Federal Council plans to invest CHF16.4 billion ($19 billion) in railway infrastructure between 2025 and 2028.
  • The "Unbundling Wankdorf South - Ostermundigen" project, a new rail tunnel, is expected to commence construction in mid-2026 and cost approximately CHF707 million ($832.2 million).

Statistics:

  • The Swiss construction industry is expected to grow at a real rate of 1.8% in 2025.
  • The industry's value-add rose by 2.1% year-on-year (YoY) in Q4 2024, preceded by YoY growth of 2.3% in Q3 and 0.9% in Q2 2024 (Source: Eurostat).
  • Switzerland's photovoltaic capacity is expected to expand from 9.2GW in 2024 to 15.2GW by 2026.
  • The Swiss Federal Council plans to invest CHF16.4 billion ($19 billion) in railway infrastructure between 2025 and 2028.
  • Over 500,000 new affordable housing units will be required by 2040 to meet the projected housing deficit.
  • The "Unbundling Wankdorf South - Ostermundigen" project is expected to commence construction in mid-2026 and cost approximately CHF707 million ($832.2 million).

Sources:

  • ResearchAndMarkets.com's "Switzerland Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report.
  • Eurostat data on the Swiss construction industry's value-add growth.
  • Swiss Federal Council's announcement on railway infrastructure investments.

Read more