Residential Construction in Europe to See Modest Recovery in 2026 After Continued Decline
- brg_news_room
- Jul 15
- 1 min read
Europe: Residential construction in Europe is expected to remain under pressure due to high interest rates, reduced purchasing power, and increased construction costs, with completed apartments forecasted to drop from 1.55 million units in 2024 to 1.46 million in 2025 before seeing slight growth to 1.51 million units in 2026. "Various factors have affected construction activity in many countries: higher interest rates, loss of purchasing power, and the sharp rise in construction costs, but also influences such as changes in new construction subsidies or tax increases," says ifo construction expert Ludwig Dorffmeister. Germany is projected to complete only 205,000 units in 2025 and 185,000 in 2026, with recovery expected only by 2027. While countries like the Czech Republic, Sweden, and Hungary anticipate growth in completions, others such as France and Great Britain are set to decline. In 2025, only Ireland, Poland, and Switzerland are expected to exceed five housing completions per 1000 inhabitants, with Germany, Great Britain, and Spain building just over two, and Italy at the bottom with 1.6.
Source: Haustec
