European Residential Completions to Hit Decade-Low in 2025
Europe: The number of residential dwellings completed in Europe is projected to reach its lowest level in a decade in 2025, with just 1.5 million units expected—marking a 5.5% decline from 2024. While a 3% recovery is anticipated in 2026, Germany’s continued decline will weigh heavily on the overall market. In contrast, Sweden is set to see a 12% increase in new living space as early as 2025, while Denmark (+28%), Finland (+23%), Norway (+13%), and Poland (+10%) will experience year-on-year growth in 2026. However, completions will decline by 9% in Austria and by 3% in both France and Italy in 2026, with Germany expected to deliver only 175,000 new dwellings that year.
Meanwhile, civil engineering remains resilient due to public investment and long-term infrastructure projects, but growth is projected to slow. After averaging 2.5% annual growth from 2017 to 2024, the sector is forecasted to expand by only 1.5% per year by 2027. Despite the need for infrastructure expansion and modernization, government austerity measures, rising construction costs, and a persistent labour shortage are constraining further development, as noted by the ifo Institute.
Source: Construction Briefing