Swiss Construction Growth Driven by Housing Demand.

The Swiss construction industry started 2026 with strong growth, driven mainly by rising residential property demand across the country.

According to the Swiss Builders Association, total activity in building construction and civil engineering increased by 5.6% to CHF 4.98 billion between January and March 2026. Residential construction recorded the strongest performance, rising by 7.4% during the same period.

The growth is supported by sustained demand for new housing projects. Low interest rates and limited housing availability continue to encourage residential development across Switzerland.

However, civil engineering growth remained weak, increasing by only 0.1%. The public sector reduced investment activity, which slowed overall infrastructure development. Rising material costs, particularly bitumen prices influenced by global geopolitical tensions, also added pressure to the sector.

The Swiss Builders Association expects the second half of 2026 to grow at a slower pace. While residential construction is expected to remain stable, civil engineering may face uncertain conditions due to external economic and political factors.

Despite global challenges, supply chain conditions have improved significantly. Only 6% of construction companies currently report material shortages, compared to nearly 50% during the post-Ukraine war disruption period.

Overall, Switzerland’s construction sector remains stable, with housing demand continuing to be the key driver of growth.