Renovation Spending Reshapes the Swiss Property Market

Energy costs, ageing buildings and tightening regulation are changing investment priorities in the real estate sector. Renovation, once treated as a discretionary upgrade, has become a strategic response to structural pressures. Across the country insulation projects, heating replacements and full building retrofits are gaining speed, turning a long-neglected segment into a driver of activity for owners, investors and construction firms.

A Renovation Gap Years in the Making

For decades buildings absorbed about 45 to 46% of final energy consumption. The stock of roughly 2.3 million properties includes many constructed before modern efficiency standards. Yet the annual renovation rate remained around 1%. At that pace reaching the efficiency levels required for 2050 targets would take more than half a century. Hesitation over costs, fragmented cantonal rules and slow permitting kept owners from acting. As a result much of the stock remains underinsulated and reliant on fossil fuels.

Financial Incentives and Heating Shifts Drive Momentum

Momentum strengthened in 2024. The national building programme provided CHF 528 million in subsidies, helping deliver savings of about 12 billion kilowatt hours and reducing emissions by roughly 3.5 million tonnes. Heating systems are changing fastest. A record 57’400 heat pumps were installed as owners replaced ageing oil and gas units. Studies show that comprehensive renovation combined with modern building technology can cut energy demand by as much as 80 percent. With many buildings now 20 to 40 years old, the renovation window is wide.

European Policy Signals Reinforce Local Action

Across Europe buildings are central to climate strategy. Renovation of existing properties is now considered essential for long term emission reduction. Switzerland faces similar pressures. Analysts estimate that renovation rates must rise to between 2 and 3 percent annually to meet national climate objectives. Authorities such as SuisseEnergie see energy upgrades and renewable heating as key tools for lowering emissions and improving energy security. Local policy is gradually aligning with European trends toward efficient, low carbon housing.

Economic Effects Spread Through the Construction Sector

Rising renovation activity supports skilled labour in construction, insulation, heating installation and energy auditing. The Programme Bâtiments channels hundreds of millions of francs annually into projects that improve the building stock and reduce reliance on imported fuels. Renovated properties gain value through lower energy costs and better comfort, while owners prepare for future regulatory requirements. Lower overall demand reduces pressure on national energy supply and strengthens the competitiveness of firms working in sustainable construction.

Signals to Watch in 2026

Regulatory harmonisation across cantons may gain political support. Owners with outdated systems are likely to respond to continued energy price volatility and policy signals by investing in heat pumps or comprehensive renovation packages. Multi family properties may see larger combined projects that integrate insulation, renewable heating, ventilation and rooftop photovoltaics. Research suggests these combined approaches offer attractive lifetime cost and emissions performance. With awareness rising, the push for efficiency is expected to continue.

A Growing Network of Advisors, Installers and Innovators

The renovation boom is creating opportunities for a broad set of players. Consultants help owners navigate technical and regulatory complexity. Universities and technical institutes provide research on optimal renovation pathways. Installers, auditors, planners and digital platform providers form an expanding ecosystem around building efficiency. Startups are beginning to offer integrated renovation services, financing solutions and tools that assess and monitor building performance.

Why Support for the Sector Matters Now

The conditions for renovation are aligned. The need is clear, technology is proven and financial incentives remain strong. For investors and partners the renovation wave offers a combination of economic opportunity and long term impact. Supporting construction firms, technology providers or service platforms helps expand capacity and accelerate building modernisation.

CapiWell identifies and supports growth stage companies in energy efficient renovation and sustainable construction. Capital and strategic guidance enable firms that strengthen the building stock and contribute to a more efficient real estate market. Participation through CapiWell is a way to take part in a structural shift with measurable economic and environmental results.