Despite inflation concerns, Switzerland’s construction industry solidified its role as a vital pillar of the economy in 2023, reaching a robust output value of 74.2 billion CHF.
Key Takeaways
- In 2023, the Swiss construction industry's total output value reached 74.2 billion CHF, reflecting a 1.8% year-on-year growth driven by residential and infrastructure projects
- The construction sector contributed 5.3% to Switzerland's GDP in 2022, with a nominal value of approximately 38 billion CHF at current prices
- Construction production index in Switzerland stood at 105.4 in Q4 2023 (base 2020=100), up 0.9% from the previous quarter
- The industry employed 332,400 people in 2023, a 1.2% increase from 2022
- Average gross monthly wage in construction was 6,820 CHF in 2022, 12% above national average
- Foreign workers comprised 28.5% of the construction workforce in 2023, totaling 94,700 individuals
- Building permits issued: 52,300 for residential units in 2023
- Total gross floor area permitted: 12.4 million m² in 2023, up 5.1% from 2022
- Residential building permits value: 18.9 billion CHF in 2023
- Construction cost index rose 4.8% in 2023 (base 2015=100)
- Material costs for construction increased 6.2% YoY in Q4 2023, driven by steel and concrete
- Labor cost index in construction: 112.4 points in 2023 (2015=100)
- 45% of new buildings certified Minergie standard in 2023
- CO2 emissions from construction: 12.5 million tons in 2022, 8% of national total
- Timber construction share: 22% of new residential volume in 2023
Swiss construction is steadily growing, driven by residential and infrastructure projects.
Building Permits
- Building permits issued: 52,300 for residential units in 2023
- Total gross floor area permitted: 12.4 million m² in 2023, up 5.1% from 2022
- Residential building permits value: 18.9 billion CHF in 2023
- Number of building completions: 41,200 dwellings in 2023
- Permits for administrative buildings: 1.2 million m² in 2022
- Multi-family housing permits: 32,100 units in 2023
- Single-family home permits: 9,800 in 2023, down 2% YoY
- Road infrastructure projects permitted: 450 km in 2023
- Permits for hotels and restaurants: 0.45 million m² in 2022
- Approval time average for permits: 4.2 months in urban cantons in 2023
- Permits rejected: 8.5% of applications in 2023 due to zoning issues
- Industrial building permits: 1.8 million m² floor area in 2023
- Rail infrastructure permits value: 3.2 billion CHF in 2023
- Energy facility permits: 250 projects approved in 2023
- Urban development zones permitted: 15 new zones covering 2,500 ha in 2022
- Demolition permits: 12,400 issued in 2023
- Conversion permits (residential to commercial): 4,200 in 2023
- Cantonal variation: Zurich issued 14% of national permits in 2023
- Sustainable building certifications in permits: 22% in 2023, up from 15% in 2020
- Hospital building permits: 0.32 million m² in 2023
- Agricultural building permits: 0.9 million m² in 2022
- Number of new dwellings completed: 38,900 in 2022
Building Permits Interpretation
Despite Switzerland's apparent dedication to precision, its construction industry reveals a charmingly chaotic yet hopeful dance where we simultaneously build 52,300 new homes, demolish 12,400 old ones, and somehow still complete fewer than we permit, all while slowly but surely paving the way for a more sustainable and densely populated future.
Costs
- Construction cost index rose 4.8% in 2023 (base 2015=100)
- Material costs for construction increased 6.2% YoY in Q4 2023, driven by steel and concrete
- Labor cost index in construction: 112.4 points in 2023 (2015=100)
- Average cost per m² for new residential builds: 4,200 CHF in 2023
- Concrete price index: 118.5 in 2023, up 7.1% from 2022
- Steel prices for construction: average 1,250 CHF/ton in 2023
- Energy costs for construction sites rose 12% in 2023
- Tender price index: 108.2 in Q1 2024 (2020=100)
- Cost overrun average on projects: 8.4% in 2023 surveys
- Wood material costs: up 5.3% to 620 CHF/m³ in 2023
- Electrical installation costs per m²: 450 CHF average in 2023
- Plumbing and heating costs index: 115.6 in 2023
- Asphalt price increase: 9.2% in 2023 for road construction
- Inflation impact: construction costs +5.1% vs general CPI 2.1% in 2023
- Renovation costs per m²: 2,800 CHF average in 2023
- Office building construction cost: 5,500 CHF/m² shell in Zurich 2023
- Regional variation: Geneva costs 15% higher than national average in 2023
- Prefab element costs down 2% due to efficiency in 2023
- Insurance premiums for construction rose 3.8% in 2023
- Transport costs for materials: +7.5% in 2023
- Single-family house total cost: 650,000 CHF average in 2023
- Multi-family apartment block cost/m²: 4,800 CHF in 2023
- Tunnel construction costs: 120 million CHF/km average in 2023
- Green buildings cost premium: 4-6% higher in 2023 certifications
Costs Interpretation
Swiss construction isn't just building homes; it's an inflation-defying art form where concrete and steel set the price, labor and energy demand their tribute, and every new project starts as a dream before meeting the brutal, 8.4%-over-budget reality.
Employment
- The industry employed 332,400 people in 2023, a 1.2% increase from 2022
- Average gross monthly wage in construction was 6,820 CHF in 2022, 12% above national average
- Foreign workers comprised 28.5% of the construction workforce in 2023, totaling 94,700 individuals
- There were 67,200 construction companies in Switzerland in 2022, with 92% SMEs
- Labor productivity per hour worked in construction was 52.3 CHF in 2022
- Unemployment rate in construction sector was 2.1% in 2023, below national 2.3%
- Apprenticeships in construction numbered 28,400 in 2023, 15% of total vocational training
- Female employment in construction rose to 12.3% in 2023 from 10.8% in 2018
- Shortage of skilled workers affected 45% of construction firms in 2023 survey
- Part-time workers in sector: 18,500 or 5.6% of total in 2022
- Construction managers earned average 115,000 CHF annually in 2022
- 76% of workers have vocational training qualifications in 2023
- Labor costs index for construction increased 4.2% in 2023
- Self-employed in construction: 42,300 persons in 2022
- Youth employment (15-24) in sector: 22,100 in 2023
- Average working hours per week: 41.2 for construction workers in 2022
- Accident rate in construction: 4.2 per 100 full-time equivalents in 2022
- Older workers (55+): 24.8% of workforce in 2023
- Union membership rate: 32% in construction in 2022
- Remote work adoption: only 3.2% in construction vs 25% national in 2023
- Wage growth: 2.8% nominal in 2023 for construction employees
- Firms with 20+ employees: 4,200 employing 72% of workforce in 2022
- Inward migration of construction workers: 12,500 in 2023
Employment Interpretation
While Switzerland's construction industry is impressively propped up by a robust, well-paid, and increasingly diverse workforce, it's still nervously checking the scaffolding for a serious shortage of skilled labor and an over-reliance on large firms, all while trying to hammer more women and technology into its traditionally grounded and aging ranks.
Market Overview
- In 2023, the Swiss construction industry's total output value reached 74.2 billion CHF, reflecting a 1.8% year-on-year growth driven by residential and infrastructure projects
- The construction sector contributed 5.3% to Switzerland's GDP in 2022, with a nominal value of approximately 38 billion CHF at current prices
- Construction production index in Switzerland stood at 105.4 in Q4 2023 (base 2020=100), up 0.9% from the previous quarter
- In 2022, residential building construction accounted for 42% of total Swiss construction turnover, equating to 31.1 billion CHF
- The Swiss construction market is projected to grow at a CAGR of 2.4% from 2023 to 2028, reaching 82.6 billion CHF by 2028
- Infrastructure construction spending in Switzerland totaled 15.7 billion CHF in 2023, representing 21% of overall sector expenditure
- Non-residential building construction volume grew by 3.2% in 2023 to 22.4 billion CHF, fueled by commercial developments
- The overall construction investment in fixed assets was 68.9 billion CHF in 2022, with a real growth rate of 1.1%
- Swiss construction exports, mainly engineering services, amounted to 4.2 billion CHF in 2022
- The sector's value added grew by 1.5% in real terms in 2023, contributing to economic stability amid inflation pressures
- Total construction turnover in 2021 was 70.3 billion CHF, with civil engineering at 28%
- Market forecast indicates 2% annual growth through 2025, driven by urbanization
- Construction sector's share in gross value added was 6.1% in 2020
- In 2023, the industry's nominal growth was 3.7%, outpacing overall GDP growth of 1.2%
- Private construction investments reached 52.4 billion CHF in 2022
- Public sector construction spending was 16.5 billion CHF in 2023, up 4% from 2022
- The construction confidence indicator rose to 12.5 points in Q1 2024
- Sector productivity increased by 0.8% in 2022
- Construction imports of materials totaled 12.1 billion CHF in 2022
- The market size for new builds was 35.6 billion CHF in 2023
- Renovation and maintenance works comprised 48% of total output in 2022 at 33.7 billion CHF
- Digital construction market segment expected to grow 15% annually to 2027
- Overall sector revenue per employee averaged 248,000 CHF in 2022
- Construction deflation adjusted growth was -0.5% in Q3 2023
Market Overview Interpretation
Despite global economic uncertainty, the Swiss construction industry continues to build its future with surprising stability, cleverly laying a foundation of modest growth while skillfully renovating nearly half the nation.
Sustainability
- 45% of new buildings certified Minergie standard in 2023
- CO2 emissions from construction: 12.5 million tons in 2022, 8% of national total
- Timber construction share: 22% of new residential volume in 2023
- Energy-efficient renovations: 28,000 buildings in 2023 under federal programs
- Recycling rate of construction waste: 92% in 2022, highest in Europe
- LEED certified projects: 156 in Switzerland by 2023
- Share of renewable materials in construction: 35% in 2023
- Solar PV installations on buildings: 2.8 GW capacity added 2023
- Low-energy standards compliance: 78% of new builds in 2023
- Carbon footprint reduction target: 40% by 2030 for sector
- Green public procurement in construction: 65% of projects in 2023
- Heat pump installations: 45,000 new units in buildings 2023
- Biodiversity measures in 32% of infrastructure projects 2023
- Water-efficient fixtures in 88% of new residential permits 2023
- Embodied carbon tracking in 25% of large projects 2023
- District heating connections: 1.2 million households by 2023
- Zero-waste construction pilots: 150 sites in 2023
- Sustainable transport in logistics: 28% electric fleet in 2023
- Life Cycle Assessment mandatory for public projects >50M CHF since 2023
- Forest certification (FSC/PEFC) wood usage: 85% in 2023
- Energy consumption per m² new builds: 25 kWh/m²/year average 2023
- Retrofitting rate: 1.2% of building stock annually in 2023
Sustainability Interpretation
Switzerland’s construction industry, in its characteristically efficient fashion, is trying to build a greener future so methodically that even its impressive 92% recycling rate can’t hide the stubborn fact it still contributes 8% of the nation’s carbon emissions, proving that erecting a sustainable sector is a renovation project far more complex than any single statistic.
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