During the last version of the EUROCONSTRUCT conference held in Sweden, this prestigious independent group made up of 19 European analysis institutes, revealed their latest projections for the construction industry in Europe. Francisco Diéguez, general director of the Institute of Construction Technology (ITeC), and Josep R. Fontana, head of the Markets Department of the Institute (ITeC), presented the most recent findings.

Diéguez began his speech by pointing out the persistent consequences of the pandemic in the construction industry, with a notable recovery between 2021 and 2022 after a drastic drop in 2020. However, between 2022 and 2024, the sector experienced a contraction of 4%, although the recovery estimation is 3.1% for the next two years. In Spain, there was a decrease of 10%, but the recovery has been constant, reaching growth of 3.4% in 2022 and with expectations of 3.3% between 2025 and 2026.

The European construction industry has remained in a contraction phase since 2023, with a forecast reduction of 2.7% in 2024. This defensive strategy seeks to alleviate the workload in an environment of increasing costs and disruptions in the real estate markets. Diéguez explained that many countries expect this situation to be temporary, with a return to growth in 2025 (1.3%) and 2026 (1.8%).

In terms of specific sector, there has been an especial impact on the residential building market with an expected contraction of 20% to adapt to new market conditions. The building of new homes will have to be significantly reduced which reached a peak in 2022, due to rising construction costs and rising credit prices. On the other hand, the non-residential building sector is in a more stable position, with a less pronounced fall of 4% expected for 2024. A more intense recovery is anticipated in 2025 (2.1%). and 2026 (2%).

Civil engineering has shown a respectable growth of 3.8% in 2023, thanks to the commitment of public administrations and the Next Generation funds of the European Union (NGEU). The estimations foresee a continued growth in 2024 (2.2%) and beyond, driven by investment in decarbonization and climate change adaptation.

In Spain, this industry has had a growth of 2.4% in 2023 and a forecast of 1% for 2024. Despite facing similar challenges to the rest of Europe, the Spanish market has demonstrated a greater resilience. Residential construction has maintained a constant growth in 2023 and 2024.

The construction sector in Europe faces a period of challenges and adjustments, but with prospects for recovery on the horizon. Spain, although not immune to difficulties, shows signs of stability and moderate growth. The upcoming Euroconstruct conference in Milan in December will be crucial to assess developments and adjust strategies for the future of construction in Europe.

EUROCONSTRUCT is an independent construction market-forecasting network. This institution was establish in 1974 by a number of specialized research institutes and consulting organizations as a study group for construction analysis and forecasting. Since then, it has expanded from the core group to include almost all Western European countries and a number of Eastern European states. Currently, EUROCONSTRUCT has member institutes in 19 European countries. Their mission is to provide, up-to-date, accurate and comparable forecasts on European construction markets to the industry. They manage a strong network of local experts in all of their 19 members, all from consulting and non-profit research institutes that specialize in construction. What they offer to the market is unique in providing standardized medium-term construction forecasts. The forecasts are updated every two years and they aim to provide market intelligence and support to their clients and businesses operating in the construction market, supply chain and in the wider economies across their network.

Source: https://www.rehabilitaconexito.com/

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