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MARKET BEATS 11
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Construction Industry Is

Developing Towards Positive learn.aiacontracts.com

Direction

Swiss construction activity keep sable despite US
customs unrest
In the first quarter of 2025, construction activity in Switzerland
totalled CHF 4.7 billion, a small increase of 0.4 percent compared
to the previous year. New orders increased by 1.9 percent.
For the year as a whole, master builders expect moderate
growth in construction activity of around 1.1 percent despite particularly pleasing that an increase of 11 percent was
the global uncertainties resulting from the US tariff discussions. recorded for new orders. This means that the increased

Residential construction is performing better than expected, number of building applications from 2024 is gradually being
reported by Lignum Journal. reflected in the order books.
At CHF 4.7 billion, construction activity in Switzerland in The Swiss Association of Master Builders anticipates that
the first quarter of 2025 was up slightly by 0.4 percent on the new flats will only gradually come onto the market from the
previous year. New orders increased by 1.9 percent. second half of the year.
For the year as a whole, master builders are expecting However, the number of newly built flats is too low to
moderate growth in construction activity of around 1.1 percent cover the demand for additional living space. A vacancy rate

despite the global uncertainties resulting from the US tariff of less than one percent therefore seems likely.
discussions. Residential construction is performing better
than expected. Timber construction in South Korea focus on carbon-
Commercial construction has decreased by CHF 40 million, neutral housing
which corresponds to a drop of seven percent compared to As South Korea moves to tighten emissions standards for
the first quarter of 2024. new buildings, including private apartments starting later this
The international trade conflicts are clouding the outlook month, policymakers are looking to timber-based construction
for the Swiss economy going forward. However, construction as a viable path toward carbon neutrality in the housing sector,
activity is proving to be fundamentally stable; the customs as reported by koreabizwire.com.

discussions have not yet had any noticeable impact. For A new report from the Korea Land and Housing Corporation
example, building materials have not become more expensive. (LH) underscores the urgency of shifting away from traditional
Public building construction performed strongly in the first carbon-intensive materials like concrete and steel.
quarter, both in terms of incoming orders (+34 percent) and Globally, construction accounts for 42 percent of CO₂
construction activity (+23 percent). emissions—27 percent from building operations and 15 percent
Residential construction performed surprisingly well in the from materials and construction processes.
first quarter of 2025. At CHF 1.7 billion, sales were up 2.4 The government has committed to reducing building-sector

percent on the previous year. emissions by 32.8 percent by 2030 as part of its national
A decline in construction activity was expected. It is climate goals.