Residential property demand boosts Swiss construction industry
The Swiss construction industry got off to a good start in 2026. According to the Swiss Builders Association, residential construction was the main driver. The rest of the year is unlikely to continue in the same vein.
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Residential property demand boosts Swiss construction industry
Activity in building construction and civil engineering sectors rose by 5.6% to CHF4.98 billion between January and March, the Swiss Builders Association reported on Wednesday. With growth of 7.4%, residential construction remained the mainstay of the construction industry.
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According to the communiqué, construction of new residential projects continued. Low interest rates and low vacancy rates continue to meet with high demand. This is an environment that is fuelling residential construction.
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Civil engineering fared less well, with growth of 0.1%. The public sector in particular put on the brakes. The first effects of the war in Iran were felt in the form of a sharp rise in bitumen prices.
The Swiss Builders Association expects slower growth for the rest of the year. Nevertheless, a satisfactory increase is forecast in building construction, while the outlook for civil engineering is unclear.
According to the association, material shortages are not currently a major problem. Only around 6% of construction companies are currently complaining about this. After the outbreak of the war in Ukraine, this figure was around 50% at times.
Adapted from German by AI/ac
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