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Residential construction is currently undergoing an enormous growth
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Europe

Construction sector will grow until 2021

Article by Dinah Urban, translated by Susanne Höfler | 24.01.2019 - 11:38

While the European construction sector's growth rate in 2018 was still 2.8%, this year the increase is only expected to amount to 2%. For 2021, the ifo institute anticipates a growth rate of +1.3%. This means that driving forces like the urbanization and favorable interest rates will most probably not lose their momentum until then. Their impact, however, is expected to weaken and the enormous production increase yielded so far – +12% since 2014 – is pushing capacities to their limits, as experts from ifo inform.

As for residential construction, business analysists expect new buildings to stagnate starting in 2020. According to current projections, the entire segment will only gain 0.5% in 2021. Underground construction will take over the lead.