Construction BUSINESS

A recent analysis conducted by Euroconstruct, the construction market forecasting network, offers an optimistic outlook for Ireland’s construction sector. The study foresees the completion of approximately 33,450 new homes in the upcoming year, followed by an additional 31,000 by the close of 2023. This projection places Ireland at the forefront of European construction growth, with an anticipated expansion of 3.2% in construction output this year, rising to an impressive 4.4% in 2023. Notably, Ireland stands as the only country within the Euroconstruct analysis where robust housing growth, expected to rise by 7.9% next year, is forecasted.

Euroconstruct’s findings also shed light on the resilience of Ireland’s civil engineering sector, which includes vital components like transport, water, and energy infrastructure. This sector is predicted to see a 2.4% expansion in 2021 and a substantial 5.3% growth in 2024. The non-residential sector, covering areas such as schools, hospitals, and offices, is also poised for growth, with a projected rise of 2.9% in 2023 and 2.6% in 2024.

Despite Ireland’s positive trajectory, the broader European construction landscape faces challenges. The continent is expected to witness a 1.7% decline in construction activity this year, with a further decrease of 2.1% projected for 2024. This downturn is attributed to macroeconomic uncertainty, rising interest rates, and tightening credit conditions. Notably, 13 countries are anticipating a reduction in housing completions.

Looking beyond the immediate future, Euroconstruct’s analysis points towards a notable shift in housing completions across the 19 analyzed countries. By 2025, these completions are forecasted to decrease to 1.51 million units, marking the lowest figure since 2016 and a significant drop from the 2.61 million units delivered in 2007.

In contrast to the general European trend, Ireland is positioned as a standout performer in the construction sector. Strong public investment in infrastructure, coupled with ongoing commitments to renewable energy and telecommunications projects, is expected to drive growth in Ireland’s civil engineering sector over the next three years. However, concerns persist, including the sharp rise in interest rates, escalating capital costs, and persistent skills shortages in the construction sector.

As the construction industry navigates these challenges, Ireland’s resilience and strategic investments continue to position it as a key player in the European construction landscape. The country’s commitment to sustainable growth and infrastructure development underscores its role as a beacon of progress within the industry.

Source: EMER WALSH, Irish Examiner