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Housing

Switzerland Construction Market to Grow Despite Short-Term Challenges

Strategic Insights

— 1 min read

Switzerland's construction industry is expected to grow by 1.8% in real terms in 2025, driven by investments in affordable housing and renewable energy, despite facing short-term challenges due to government budget cuts and trade tariffs.

Key Takeaways:

  • The Swiss construction 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 (Eurostat).
  • The Swiss government projects a significant housing deficit by 2040, requiring over 500,000 new affordable housing units to be constructed (Swiss government).
  • Switzerland's photovoltaic capacity is expected to grow from 9.2GW in 2024 to 15.2GW by 2026, indicating substantial growth in its transition towards renewable energy.
  • The Swiss Federal Council plans to invest CHF16.4 billion ($19 billion) in railway infrastructure between 2025 and 2028.
  • Swiss Federal Railways (SBB) is constructing a new rail tunnel, "Unbundling Wankdorf South - Ostermundigen" in Bern, with a cost of approximately CHF707 million ($832.2 million).
  • The construction industry is expected to record an annual average growth of 1.6% between 2026 and 2029, supported by government investments in transport infrastructure, housing, and energy projects.

Statistics:

  • The Swiss construction industry's value-add rose by 2.1% YoY in Q4 2024 (Eurostat).
  • The Swiss government projects a housing deficit of over 500,000 units by 2040 (Swiss government).
  • Switzerland's photovoltaic capacity is expected to grow to 15.2GW by 2026 (unknown source).
  • The Swiss Federal Council plans to invest CHF16.4 billion ($19 billion) in railway infrastructure between 2025 and 2028 (Swiss Federal Council).
  • The cost of the "Unbundling Wankdorf South - Ostermundigen" project is approximately CHF707 million ($832.2 million) (SBB).
  • The construction industry is expected to record an annual average growth of 1.6% between 2026 and 2029 (unknown source).

Sources:

  • Eurostat
  • Swiss government
  • Unknown source
  • Swiss Federal Council
  • SBB
  • "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 by ResearchAndMarkets.com

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