Insight into building permits and renovation dynamics
The new white paper from the Center for Risk Management at HEC Lausanne reveals the hidden trends in the Swiss real estate sector. With more than 45,000 building permits from 2024, the analysis provides valuable insights into the pace, cost and type of renovations and shows how much still needs to be done to achieve the climate targets.
With the white paper “Retrofitting the Future”, the CRML at HEC Lausanne, together with E4S, is presenting a sound basis for assessing progress in the building sector. The analysis of over 45,000 building permits issued in 2024 provides a precise picture of how the Swiss real estate sector is progressing towards climate neutrality and where it is still encountering obstacles.
Lots of potential, little energy efficiency
The study shows that significant trends are emerging in the renovation of buildings. However, only a small proportion of renovations are directly aimed at improving energy efficiency. Although the transition to low-emission buildings has begun, it is not yet sufficient to achieve the ambitious climate targets.
Financial challenge for real estate funds
The report also highlights the role of real estate investment vehicles (REIVs). In order to achieve the climate targets by 2050, they would have to mobilize an average of 13 percent of their net assets, a total of CHF 28.3 billion, for energy-efficient renovations. Some market players will have to invest far more than this average, as the authors emphasize.
Data-based perspective for the future
“By combining current data and detailed project typologies, we create a bridge from theoretical analysis to a concrete basis for action,” explains Dr. Nathan Delacrétaz, co-author of the white paper. Together with Professors Eric Jondeau and Fabio Alessandrini, he is thus providing a decisive impetus for the urgently needed real estate turnaround in Switzerland.