Construction Spending Rises in December in Canada CANADA: Investment in building construction in Canada increased in December, with total spending up $442.9 million (1.9 %) to $23.7 billion, according to Statistics Canada data reported by Hardlines. Growth was driven by residential construction, which rose 2.4 % to $16.8 billion, including a 2.3 % increase in single‑family home investment to $7.5 billion. Gains were seen notably in Ontario and British Columbia, reflecting con

Orlando Focuses on Affordability Challenges at IBS 2026 USA: At the International Builders’ Show (IBS) 2026 held in Orlando, affordability emerged as a central concern for the housing and construction industry, with major discussions on how escalating costs are affecting buyer demand and market confidence. Participants, including builders and industry experts, highlighted that high home prices, mortgage rates and supply‑side pressures are constraining housing affordability, p

Middle East Construction Costs to Rise 4% in Saudi Arabia and 3% in UAE in 2026 Saudi Arabia/UAE: Construction costs across the Middle East are set to increase in 2026, rising around 4% in Saudi Arabia and 3% in the UAE. In Saudi Arabia, activity will continue under Vision 2030 despite some project rephasing, with 4% cost escalation driven by imported and specialist materials, strong demand for Tier 1 and Tier 2 contractors, and skilled labour shortages; data centres and digi

Hassan Allam Launches USD 880 Million Noor Khuzam Residential Project in North Riyadh Saudi Arabia: Egypt’s Hassan Allam Holding has announced the launch of the USD 880 million Noor Khuzam integrated residential project in North Riyadh, spanning 228,000 square metres. The 3,018-unit development will be undertaken by its subsidiary Grova Developments in partnership with Tilal Real Estate and National Housing Company (NHC). The project features open green spaces, shared dining

Ontario and Quebec Join Forces to Expand Housing and Infrastructure CANADA: The provincial governments of Ontario and Quebec have signed a memorandum of understanding to collaborate on expanding housing and supporting infrastructure development. The agreement will facilitate the deployment of the Build Canada Homes programme in Quebec, which focuses on increasing affordable housing supply through modern construction methods such as prefabrication and modular building. As part

Kuwait Draft Budget Sets Higher Capital Spending and Wider Deficit Kuwait: Kuwait’s Ministry of Finance has projected capital spending of around KWD 3.1 billion (USD 10.0 billion/EUR 9.2 billion) in the draft budget for the 2026–2027 fiscal year. The ministry said most capital allocations are expected to be directed towards airport expansion, the Mubarak Al-Kabeer port, and water and power projects. The draft budget forecasts a deficit of around KWD 9.8 billion (USD 32.0 bill

Portugal’s New Housing Construction Costs Rise 4% in 2025 Portugal: Portugal’s National Statistics Institute (INE) reported that the average annual increase in the New Housing Construction Cost Index reached 4.0% in 2025, compared with 3.4% in 2024. The materials index rose by an average of 0.9% during the year, while the labour index increased by 7.7%. In December 2025, new housing construction costs rose 4.0% year-on-year, marking a slowdown from the previous month. Materia

European Parliament Committee Calls for EU Action on Housing Affordability European Union: The European Parliament’s Special Committee on the Housing Crisis has adopted its final recommendations on addressing the housing crisis across the European Union. The report calls for EU legislation to support the viability and cost of building new housing, while also urging targeted use of funding under the Commission’s Affordable Housing Plan to improve energy performance in residen

RICS Survey Signals Improved Construction Sentiment in Australia Australia: The Royal Institution of Chartered Surveyors (RICS) has reported improving conditions in Australia’s construction industry in 2025, led by private non-residential work and infrastructure and public projects. The latest Global Construction Monitor showed the Construction Sentiment Index rising to plus 21 from plus 15, returning to levels last seen in 2023. Infrastructure performance remained supported

Housing 21st Century Act Clears a Significant Legislative Hurdle USA: The U.S. Senate has advanced the 21st Century ROAD to Housing Act, bringing the bill closer to final approval after clearing a major procedural hurdle with broad bipartisan support. Earlier, the House of Representatives had passed the legislation with overwhelming majorities, and the Senate’s action this week positions the Act for a floor vote. The legislation aims to address housing affordability and suppl

Germany Germany: The rate of energy efficient renovations in the residential building stock declined to 0.67% in 2025, marking a new low compared to 0.69% in 2024 and 0.70% in 2023, while around 2% annually is required to meet climate targets. Renovation activity in non residential buildings also fell to 0.92%. In total, about 260000 residential units were renovated in 2025, below the estimated requirement of 460000 units. Industry representatives highlighted a growing renova

Hassan Allam Properties Egypt: Hassan Allam Properties plans to execute new projects worth US$ 296 million in 2026 and will introduce a hospitality brand to manage its expanding hotel portfolio. The company is diversifying beyond residential developments into hospitality, sports, and education through partnerships with local and international entities. Four hotels with a combined capacity of around 700 rooms are under development in New Cairo, 6th of October City, and the Nor

US US: A new master-planned community in Denton, North Texas is set to be developed on a 2,500-acre site with an estimated investment of about US$5.1 billion. The project will include over 9,200 homes, comprising 7,091 single family units, 584 townhomes and 1,515 multifamily residences, along with 1.2 million square feet of commercial space and a central park of more than 300 acres. Plans also include three new schools to serve future residents, with initial construction of 8

Aldar to Add 3,000 Homes to Abu Dhabi Market Amid Strong Demand UAE: Aldar Properties will begin construction of nearly 3,000 new homes in Abu Dhabi this year, responding to rising residential demand. The developments, with a combined gross development value of AED 23 billion (USD 6.26 billion), will be built on 2.3 million square metres of newly acquired land across Saadiyat Island and Yas Island, Aldar said in a filing to the Abu Dhabi Securities Exchange. Saadiyat plots

EU Backs Recovery Payment for Czechia After Reform Progress CZECH REPUBLIC: The European Commission has given a positive assessment of Czechia’s fifth payment request worth US$ 725.2 million (€614 million) under the EU Recovery and Resilience Facility. The approval follows Czechia’s satisfactory completion of 29 milestones and targets linked to reforms and investments in affordable housing, sustainable transport, energy efficiency, rail infrastructure, environmental research

Europe Housing Landscape in 2025: Ownership Dominates, Affordability Strains Intensify EUROPE: Housing conditions across the European Union in 2025 reveal a market shaped by high ownership, rising costs and growing affordability challenges. In 2024, 68% of EU residents owned their homes, with ownership rates exceeding 90% in Romania, Slovakia, Hungary and Croatia. Germany remained the only country where renting predominated. Just over half of Europeans lived in houses, though

Tariffs Push Up US Construction Costs by Over 3% in 2025 UNITED STATES: Non- residential construction input costs in the US rose 3.2% year on year in 2025, driven largely by tariff-related material price increases, according to Associated Builders and Contractors using data from the U.S. Bureau of Labor Statistics. Overall construction costs increased 2.8%, despite modest price declines in December. Materials most exposed to tariffs saw sharp rises, with copper wire and cable

Oman and Saudi Fund for Development Sign MoU for Thumrait Industrial City OMAN: Oman’s Ministry of Finance and the Saudi Fund for Development have signed a memorandum of understanding to finance the construction of Thumrait Industrial City in Dhofar Governorate, with Saudi funding of USD 40 million. The agreement was signed in Muscat by Sultan Salim Al Habsi and Sultan bin Abdulrahman Al Marshad. The project will establish an integrated industrial city with roads, utilities,

Nigeria and Saudi Arabia Discuss Housing and Construction Cooperation Nigeria/Saudi Arabia: Nigeria and Saudi Arabia have held discussions to expand bilateral cooperation in housing development, construction technology and local building materials manufacturing, during meetings on the sidelines of the 2026 Real Estate Future Forum in Riyadh. Nigeria’s Minister of Housing and Urban Development, Ahmed Musa Dangiwa, met with Saudi Arabia’s Minister of Municipal and Rural Affairs

Canada’s Building Costs Rise at Slower Pace in Late 2025 Canada: Building construction costs in Canada continued to increase in the fourth quarter of 2025, although the rate of growth eased compared with earlier in the year, according to data from Statistics Canada. Residential construction costs rose 0.4 per cent quarter on quarter, while non-residential costs increased 0.5 per cent. On an annual basis, residential costs across the fifteen census metropolitan areas increased