Construction Industry in Europe Faces Moderate Recovery

The Euroconstruct network expects a slight recovery in the European construction industry in 2025. Growth is expected to be 0.6 percent in real terms compared to last year. This development will be supported by the general economic recovery and ongoing post-crisis pent-up demand in 2020. However, residential construction will remain under pressure, while civil engineering should benefit from EU subsidies and infrastructure projects, especially the expansion of public transport. The Austrian construction sector is also showing the first signs of stabilisation. Real construction investments will increase by 0.4 percent year-on-year in 2025. Residential construction is also starting to bottom out, although declines are still expected in 2025. The easing of lending standards and falling interest rates should gradually revive demand for residential construction. However, a stronger recovery in the Austrian construction industry, particularly in residential construction, is not expected until 2026.