The Euroconstruct report is an annual, in-depth analysis of construction market forecasts for 19 European countries. It provides economic and sectoral data and short- and medium-term forecasts, helping professionals and investors to make informed decisions and strategic planning.
It is essential to understand the trends and drivers of the sector, comparing European markets. So let’s see what we can conclude from his analysis.
The construction sector in Europe remains in a contraction phase that started in 2023 (-1.4%), with a further reduction expected in 2024 (-2.7%). This retrenchment seeks to better manage the workload in the face of rising costs and disruptions in real estate markets. Some countries expect this situation to be temporary and forecast tentative growth in 2025 (1.3%) and stronger growth in 2026 (1.8%).
However, some major countries such as France, Germany and Italy are not following this average trend. France and Italy could bottom out between 2024 and 2025, but Germany has not yet seen the end of its negative trend.
Conclusions of the report from an industry perspective in Spain
The construction sector in Spain is showing signs of growth and recovery, but with several existing challenges and risks that will need to be carefully managed to maintain this momentum.
During 2023, growth was 2.4% and forecasts for 2024 are for a rate of 1%. These data are significantly better than the average in the European context, where production has contracted in both years. However, we cannot consider these data as very positive and the challenges to be faced are of great relevance. Rising production and financial costs are two of the factors that are having a significant impact throughout Europe and solutions must be sought.
Residential and non-residential sector
Regarding residential construction, unlike other European countries, in our country the sector passed the years 2022-2023 without a big drop in production, demonstrating the strength and maturity of the sector. Even so, the context influences and growth forecasts are not very high either, 0.5% in this 2024 and 1.5% and 2% respectively during the years 2025 and 2026, partly with the support of public investment through the Next Generation funds.
Non-residential construction is in a somewhat more negative situation than residential construction, still maintaining a decrease forecast for the latter, with a rate of -1.5%. However, some recovery is expected as the year progresses and an acceleration of 1.5% and 2% respectively is forecast during 2025 and 2026.
Rehabilitation sector
The PREE program, which aims to improve energy efficiency in housing, has not met initial expectations. Despite this, moderate growth is expected in the refurbishment market: 2.5% in 2023 and 2.6% in 2024. However, caution is still very much present and factors such as the price per kilowatt are proving to be more decisive than the aid itself in reactivating the market.
Civil Engineering
Thanks to the NGEU funds and the context from which it started, civil engineering presents the best data. Showing 7% growth in 2023, although growth rates are expected to slow to 2.8% in 2024, 2.8% in 2025 and 2.6% in 2026.
In short, the European and global context is directly linked to the evolution of construction in the member countries of the European Union, but the data and forecasts allow us to be moderately optimistic.
