European Non-residential Construction Markets towards 2027

The European non-residential construction market has been in moderate decline since 2022, moving from post-pandemic slowdown to stagnation in 2023 and a more pronounced downturn in 2024. Modest growth is expected from 2025 to 2027, but the sector is not projected to reach pre-Covid levels by 2027. Recovery varies by country and segment, with public investment (especially in education, healthcare, and infrastructure) as the main driver, supported by EU and national stimulus funds. Private construction remains weak due to high but declining interest rates, cost pressures, and economic uncertainty, particularly affecting industrial and office buildings.