Is a new building worthwhile at the moment?

The deciding factor: costs vs. future security

1. The energy factor: Why new construction is worthwhile

The most powerful factor in the current discussion is energy efficiency. A modern house consumes only a fraction of the energy of an unrenovated old building.

• Operating costs: Given volatile energy prices, building a new home is worthwhile because it makes you independent. Heat pumps, photovoltaics, and modern insulation (Minergie standard) keep ancillary costs to a minimum.
• Investment backlog: When you buy an older building, you often also inherit the obligation to renovate. New heating regulations in many cantons are forcing conversions. Considering new construction worthwhile is absolutely justified here, given the "calm before the storm." You can expect no major investments for the next 15 to 20 years. Looking at life cycle costs, new construction is worthwhile , even if the initial price is higher.

2. Construction costs and inflation: Is a new building worthwhile despite the price shock?

Construction costs in Switzerland have risen. The Zurich construction cost index is trending upwards.

Does this make building uneconomical? Not necessarily.

While you may pay more for materials today, real estate is a tangible asset. It offers protection against inflation. When money loses value, concrete retains its value. In the long run, new construction has been worthwhile , as real estate prices in Switzerland have historically almost always risen. Those who build now secure today's price. Waiting can become expensive if prices continue to rise. Whether new construction is worthwhile therefore also depends on your inflation expectations.

3. Interest and Financing

The days of 0.8% mortgages are over. Financing costs have multiplied.

Under these circumstances, is a new building worthwhile ?

Here you need to do the math carefully. The monthly payments are higher. But: Banks often rate new builds better than older buildings in need of renovation. You'll often find it easier to get a "green mortgage" with interest rate discounts. These interest rate advantages can help make new construction worthwhile . Furthermore, the resale value of a modern house is more stable. Making new construction worthwhile today means contributing more equity to reduce the interest burden.

4. Individuality and quality of life

Money isn't everything. Determining whether a new building is worthwhile is also an emotional question.

• Floor plan: In older buildings, you have to live with small rooms or awkward layouts. In new builds, you're in charge. Home office, open kitchen, spa-like bathroom – you're building for your life, not for the lives of the previous owners from 1970.
• Technology: Smart home systems, ventilation systems, and EV charging stations are integrated into new buildings. Retrofitting these features in older buildings is expensive and complicated. This quality of life makes new construction worthwhile on a level that isn't measured in Swiss francs.

5. The risk: When is a new building NOT worthwhile ?

We have to be honest. There are scenarios where the risk outweighs the benefit.

• Location: A castle in the desert is worthless. If you build in a poor location where land prices could fall, new construction is hardly worthwhile . You'll never recoup the construction costs when you sell it.
• Time pressure: Construction takes longer these days (supply bottlenecks). For those who need to move in immediately, new construction isn't worthwhile . The double burden of rent and mortgage interest can be financially ruinous.
• Budget: If you're living on a shoestring budget, building a new home might seem worthwhile , but it's dangerous. You need a buffer for unforeseen circumstances. Without a reserve, the dream will turn into a nightmare.

6. Value retention and resale

A look into the future: How easy will it be to sell the house in 20 years?

This shows that a new building is worthwhile .

Energy efficiency standards are becoming stricter. A house built today according to the latest standards will still be marketable in 2040. An older building that you buy "cheaply" today could then be unsellable (" stranded asset") if it hasn't undergone extensive renovations. From the perspective of asset protection, new construction is worthwhile , as it reflects technological advancements.

Strategies to ensure that new construction remains worthwhile

How do you maximize the benefit?

• Build compactly: Every square meter costs money. Build efficiently, avoid unnecessary traffic areas. That's how new construction remains worthwhile .
• Standardization: Custom-designed architect-built houses are expensive. Prefabricated or modular homes offer cost certainty. This makes new construction worthwhile and predictable.
• Self-build: Where can you lend a hand yourself? Painting or flooring done yourself makes new construction worthwhile , as you save on labor costs.

Conclusion

The question "Is new construction currently worthwhile?" can be answered with a cautious but clear "yes"—provided one is thinking long-term. Calling new construction worthwhile today is primarily a bet on energy costs and the preservation of value. The high initial investments and interest payments are painful in the short term. However, independence from oil and gas, low maintenance costs, and modern living standards pay off over the years.

Compared to buying an unrenovated older building, which can become a bottomless pit, new construction offers cost certainty after moving in. For those with sufficient equity and time, new construction is and remains a worthwhile investment . It's an investment in the building's structure rather than repairs.

Loft 's data and analyses to put your project on a secure foundation.

Glossary

• New construction worthwhile : The economic assessment that the advantages of a new building (energy efficiency, value retention) outweigh the disadvantages (high costs, interest rates).
• Construction cost index: A statistical value that measures the development of prices for construction services and materials and indicates how expensive construction is becoming.
• Life cycle costs: The total costs of a property from construction through operation to demolition – new buildings often perform better in this regard.
• Green mortgage: A discounted loan from banks for particularly energy-efficient new buildings, making financing cheaper.
• Minergie: A Swiss building standard for new and modernized buildings that guarantees low energy consumption and high comfort.