Demand for larger apartments is driving the construction industry
BAK Economics expects construction activity to increase by 0.4 percent in the current year. The economic research institute expects 0.6 percent growth for 2022. The upward trend in building construction is based on the demand for larger apartments.
The construction industry has proven to be crisis-resistant during the corona pandemic. According to a press release, the economic research and consulting institute BAK Economics expects building construction to grow by 0.4 percent this year. An increase of 0.6 percent is expected for 2022.
The prospects for construction activity vary between residential construction, commercial construction and infrastructure construction. While residential construction is increasing, commercial and public construction projects are recording slight losses. The demand for larger apartments is growing due to increased home work. In addition, the energetic renovations and the expected turnaround in interest rates are driving growth.
In contrast, the pandemic-induced decline in the number of public-sector construction projects is having an impact on infrastructure construction. The number of commercial construction projects is also falling, as many companies postpone or stop planned construction projects. Thanks to the current economic upturn, according to BAK Economics, an upturn in both areas can be expected in 2022.
Positive results in building construction are expected for the years 2023 to 2027. In commercial and infrastructure construction, the medium-term order situation should remain constant.
There are regional differences in overall construction activity: According to BAK Economics, the regions of Zurich / Aargau, the Lake Geneva region and central Switzerland have the best forecasts. The institute expects the Basel region to stagnate in the medium term.