Infrastructure set to be the fastest growth sector
Switzerland’s economy grew gently in 2017, by 1 percent. Interest rates are expected to stay low over 2018 and, combined with the weakened Swiss Franc, this is expected to encourage growth of 2.3 percent. Despite a fall in civil engineering orders, construction tender prices have risen slightly on the back of a strong housing market.
The Swiss construction market has been steady for some time, supported by attractive tax rates and a balance in supply and demand in the sector. Zurich’s renowned technology school, which provides high-tech companies with resources, continues to attract Silicon Valley corporations to Zurich. Although the cost of construction and living are among Europe’s highest, the tax advantages are attractive to these firms.
The life sciences sector accounts for many of the major construction projects, with numerous US pharma and healthcare corporations investing heavily in new production facilities.
|Market:||Staying the same|
|Cost escalation 2017–18:||0.4%|
|Cost escalation 2018–19:||0.6%|
|Location factor (USD):||126.6|
Infrastructure construction looks to be the fastest-growing construction market over the forecast period, supported by government investment in transport. In 2016, the government announced plans to invest USD13.3bn upgrading the national rail network. It also plans to increase the country’s renewable energy production capacity. Meanwhile, Lausanne is preparing to host the Winter Youth Olympics in 2020.
This content is part of the International construction market survey 2018