New report on construction activity in Europe

A new report by the European Construction Industry Federation (FIEC) highlights that the outlook for the sector in Europe in 2023 is rather pessimistic with regards to housebuilding.

New housebuilding represents 20,6% of the total investment in construction in Europe. It was one of the main drivers of the overall increase in construction investment in 2021, when the sector was still recovering from the effects of the Covid-19 pandemic, but declined by 0,2% in 2022. This drop was mainly due to significantly weaker growth recorded in France (+2,7%) and Italy (+4,5%) compared to the previous year as well as to a decline recorded in Germany (-3,0%).

The outlook for 2023 is not much better, with markets in several countries, including some of the EU’s larger Member States, forecasted to contract. Overall, investment in new housebuilding is forecasted to decrease by 3,2% with the largest drop expected in the Sweden (-42,4%). Significant drops are also forecasted for the Czech Republic (-25,8%), and Denmark (-20,3%).

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