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Housing construction in Switzerland to rise in 2025, ending 7-year slump
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Housing construction in Switzerland to rise in 2025, ending 7-year slump

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© 2025 IamExpat Media B.V.
© 2025 IamExpat Media B.V.
Nov 14, 2024
Jan de Boer

Editor at IamExpat Media

Jan studied History at the University of York and Broadcast Journalism at the University of Sheffield. Though born in York, Jan has lived most of his life in Zurich and has worked as a journalist, writer and editor since 2016. While he has plunged head-first back into life in Switzerland since returning to the country in 2020, he still enjoys a taste of home at pub quizzes and karaoke nights.Read more

For the first time since 2017, the number of new homes built in Switzerland is expected to rise. A new study by real estate consultancy Wüest Partner predicted that suburban areas and commuter towns around Swiss cities will see the biggest boost in new homes.

Swiss housing market set to end 7-year slump

The last six years have been tense on the Swiss housing market, with investments in new homes declining every year since 2017. With the population continuing to grow, this has led to ever-rising costs for renting a house or apartment in Switzerland, with the number of available properties falling to a record low in September 2024.

However, in the new report, Wüest Partner predicted that for the first time since 2017, the number of new homes built in Switzerland is expected to increase in 2025. Between the third quarter of 2023 and the end of June 2024, 45.000 housing units were authorised, a slight increase compared to the same period the previous year. 

Number of new rental homes set to rise in Switzerland

While some of the new projects are set to replace existing dwellings, 39.000 new homes are still expected to enter the market from 2025 onwards. The biggest rise in applications was for condominiums, increasing by 30 percent between 2023 and 2024. 

The number of new rental homes given approval by local councils has also risen, but only by 4 percent. While smaller than hoped, on average each approved project contained 22 percent more homes than the long-term average. "Despite the currently low approval rates, a further increase in the rental housing segment is therefore to be expected…However, starting from a low level," Wüest Partner expert Robert Weinert told Blick.

Which areas of Switzerland will see the most new homes?

Specifically, the amount of new housing construction should increase the most in Geneva, the commuter towns between Lausanne and Bern, Val-de-Travers, Bernese Jura, Bellinzona, Davos and Schanfigg, the Lake Zurich area of Canton Schwyz, and the Glattal and Weinland of Canton Zurich. Housing construction is also expected to increase around the major Swiss cities, while the rest of the country is expected to see rates decline next year.

In terms of the housing projects approved since September 2023, the largest is the 500-rental home development in Wankdorf City 3 in Bern, which is expected to be complete by 2029. The second largest is in Kriens Canton Lucerne, where 370 homes are expected to be built in two large towers.

However, despite the rise in construction, Weinert said that thanks to rising population growth, most of the new homes will be immediately snapped up by prospective tenants. While the housing shortage will not get worse, "It is therefore not possible to create a rapidly available supply on a large scale," he concluded.

Thumb image credit: Thomas Stoiber / Shutterstock.com

By Jan de Boer