Construction industry expects stable growth in 2026 – more flats required
Keystone-SDA
Switzerland’s construction sector recorded strong growth last year and is set to expand again in 2026.
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The Swiss Association of Master Builders says residential building remains the key driver of the industry, even though it continues to fall short of demand because of structural barriers.
Construction activity in both building construction and civil engineering increased by 2.1% in 2025, reaching just under CHF23.9 billion ($30.8 billion), the Swiss Association of Master Builders reported on Wednesday, citing its construction index. The final quarter of the year saw particularly strong momentum, with activity up 6.3% compared with the same period in 2024.
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Residential construction remained the sector’s main pillar, posting growth of 4.8% in 2025. New orders in this area rose even more sharply, increasing by 11%. Across the wider construction industry, orders were up 3.7% overall, and the year ended with an order backlog 4.5% higher than in 2024.
The industry expects turnover to reach around CHF24.4 billion in 2026, representing growth of about 1.9%. Residential construction is again forecast to be the main driver of expansion, it added.
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Call for quicker pace in residential building
However, the pace is still too slow for the Swiss Association of Master Builders. The association says Switzerland needs around 50,000 new flats a year to ease the housing shortage, a level last reached in 2018. It also notes that the federal measures announced to tackle the shortage have so far been implemented only to a limited extent.
The association is therefore again calling for a broad reduction in the number of people allowed to lodge objections, faster planning approvals, a streamlining of the more than 140,000 building rules in force nationwide and more proactive spatial planning by cantons and municipalities.
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According to the association, civil engineering – alongside residential construction – is helping keep capacity use stable thanks to ongoing infrastructure investment. But budget constraints, heavy workloads and a shortage of skilled workers are slowing progress.
The Swiss Association of Master Builders argues that the Swiss government should maintain its funding for rail and road projects, even if this means keeping the small VAT surcharge in place permanently.
Translated from German by AI/sp
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