The European construction industry is gradually recovering

After two years of decline in 2023-2024 (a cumulative drop of 3.7%), the European construction market is gradually emerging from the crisis. These forecasts were presented by experts from the international analytical network EUROCONSTRUCT, which analyses the European construction sector across 19 countries (Ukraine is not included in the list).
In 2025, the total volume of construction is expected to grow by 0.6%, with recovery rates potentially accelerating to 1.7% in 2026-2027.

The residential construction sector, which recently underwent significant market correction, will shrink again in 2025, mainly due to a decline in the Italian market. New residential construction remains in a stagnation phase, but gradual recovery may begin in 2026. Meanwhile, non-residential construction is set to return to growth this year after the decline of 2023-2024. The infrastructure construction segment, which has been relatively crisis-resistant, continues to show growth. However, growth rates are expected to slow gradually from 2.2% in 2024 to 1.5% in 2027.


Country-specific outlook:

• Germany: the worst prospects among major markets. Residential construction volume is expected to drop by 44% between 2023 and 2027.
  In 2027, only 165,000 apartments are projected to be completed, a 34% decrease compared to 2023. The decline is attributed to high construction costs, labour shortages, high interest rates, and uncertainty in government policies on construction cost reduction measures.
• Italy: a sharp surge due to changes in state support programmes for renovations in 2021-2022 has now been followed by a decline.
• France: a significant downturn in the residential sector (-19% by 2027).
• Spain: one of the few markets showing positive growth (+48.5% in residential construction by 2027).
• Poland and the UK: slight growth expected after 2025.

Previously, the German association BV Glass anticipated a recovery in the glass industry by 2025.

In the medium term, moderate acceleration is expected in 2026-2027. However, despite the recovery, a full return to previous growth levels is not guaranteed. Risks include economic downturns, government fiscal constraints, high construction costs, and labour shortages.