Euroconstruct, a market forecasting network with member institutes in 19 European countries, has stated that following a challenging year in 2024, data points to a positive, if slight, turnaround from 2025 onwards.
According to the organisation’s current estimates, the construction activity in the 19 Euroconstruct countries is projected to decline by 2.4% in 2024, while a slight recovery is expected in 2025 with growth of just 0.6%, due to gain momentum in the following two years. This forecast represents a modest upward revision for 2024 by 0.3 percentage points compared to previous estimates, though the growth in 2025 is slightly weaker than initially anticipated, while the modest growth path for 2026 remains unchanged.
The primary challenge for the European construction market in 2024, says the forecaster, was a significant decline in new residential construction. High property prices, still elevated interest rates (albeit declining) and high construction costs were the main obstacles.
However, the sector is anticipated to stabilise in 2025, the organisation says, with growth accelerating in the following years. The residential renovation market is also in contraction, with a modest decline this year and a further decrease next year. An improvement in the housing sector is forecast from 2026 onwards, driven by demographic factors, economic conditions and more favourable subsidy schemes for housing renovation.
Despite the current challenges, the European construction market is poised for recovery and growth in the coming years. Public support for refurbishment projects and significant investments in infrastructure will be key drivers of this positive trend.
www.euroconstruct.org
