This is how construction will go in the coming years

At the 92nd Euroconstruct conference, a forecast outlining the outlook for the new construction industry until 2024 was presented. At Euroconstruct, total construction output is expected to decline by 4.7% in 2020, a more modest decline than half a year ago. The estimate for 2021 and the new short-term forecast have also improved, although they will slow in the medium term. According to Buildecon, the Hungarian construction market can expect a positive growth rate until 2024.

Development of the entire construction market of Euroconstruct

Coordinated international recovery, infrastructure as a classic fiscal policy, generous stimulus measures to renovate and modernize buildings all support the positive outlook. The general economic recovery and the rising confidence index in all Euroconstruct countries are also favorable for the construction industry.

Construction performance in 2021 is estimated at € 1,740 million by Euroconstruct researchers, a significant increase of 5.6% after a tough year last year. At the national level, however, the situation is very variable. Seven countries have already crossed pre-crisis levels, with six countries ’construction market capacity flat this year compared to 2019 levels. In the remaining six countries, the gap remains negative and there is a large country that needs to catch up 10% from pre-crisis levels.

According to the new short-term outlook, Euroconstruct is expected to grow strongly next year (+ 3.6%) and to expand by up to 1.5% over the next two years. However, there are some supply-side factors of concern that could affect the overall positive scenario. These include raw material prices, labor shortages and the direction of state support.

At the national level, Ireland, Spain, Hungary and the United Kingdom are leading the list over the forecast horizon, with strong growth above 4%. At the same time, a flat trend is expected in Germany and Switzerland, while construction performance is expected to decline in Finland and Sweden.

Subsectors until 2024 in the Euroconstruct area

All non-residential segments are expected to perform relatively better in the near future, while the housing market will be able to grow more moderately. Euroconstruct researchers estimate the growth rate for civil engineering at around 3% per year. This is not far behind the expected average growth of 2.5% for the non-housing sub-sector between 2022 and 2024. The largest construction sub-market in Europe, housing, is expected to slow down (+ 1.6%).

Hungarian construction market until 2024: Buildecon’s forecast

Buildecon, a Hungarian member of Euroconstruct, estimates that Hungary’s construction performance will increase significantly by 2024 (approximately 7% in 2022-2023 and approximately 3% in 2024).

Of the 19 Euroconstruct countries, Hungary expects the highest annual increase in construction costs this year. In fact, since 2018, Hungary has been leading the list in terms of rising construction costs in the Euroconstruct area.

The latest detailed forecasts for the construction market in 19 European countries are available and can be ordered from Buildecon.


Source: Ingatlanhírek by ingatlanhirek.hu.

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