CONSTRUCTION INDUSTRY ANALYSIS
WITH MOMENTUM BUILDING IN INFRASTRUCTURE AND HOUSING, CIS FORECASTS SECTOR-WIDE GROWTH THROUGH 2025 WITH NI POISED FOR A 71% REBOUND BY 2026…
Northern Ireland construction recovery gains ground
HEALTH & EDUCATION PROJECTS LEAD RESURGENCE Northern Ireland is seeing major investment in its public estate, with healthcare and education emerging as key growth drivers. • Work is now underway on the landmark £389m Children’s Hospital in Belfast. • The £375m Strule Shared Education Campus in Omagh is also under construction. • Education starts rose by 200% in 2024 to £532m. • Health project starts jumped to £505m in Q1 2025 alone. These developments follow a budget allocation of £391m for health capital investment and £270m for education. HOUSING BOTTLENECKS BEGINNING TO EASE While housing delivery has been challenged by infrastructure constraints, particularly around waste and water systems, 2026 is expected to be a pivotal year. Following a 2% dip in 2025, residential starts are forecast to increase by 46% in 2026 and a further 8% in 2027.
Northern Ireland’s construction market is showing strong signs of resilience and recovery heading into 2025, according to the latest forecast from industry intelligence specialist CIS, powered by Hubexo. After a turbulent 2024, where total project starts fell just 2%, the new data shows the market stabilising this year and surging by a remarkable 71% in 2026. This uplift is underpinned by significant capital investment, a healthy public sector pipeline and signs of renewed confidence across the health, education and industrial sectors. According to the CIS Irish Construction Forecast 2025-2027, total construction starts in Northern Ireland are set to rise from £1.55bn in 2024 to £1.58bn in 2025 and £2.7bn in 2026. “Northern Ireland is seeing major investment in its public estate, with healthcare and education emerging as key growth drivers.”
• Social housing starts rose 94% in 2024. • 424 new homes were started in Q1 2025 across 24 schemes. • 1,606 new homes received planning permission in Q1 2025, worth £191m. NON-RESIDENTIAL INVESTMENT HOLDING STRONG Northern Ireland’s industrial and commercial sectors continue to attract investment, even amid economic headwinds. • Non-residential starts are forecast to rise 3% in 2025 and 79% in 2026. • Industrial project values hit £206m in 2024. • Office starts more than doubled in 2024 (+125%), with 31 projects granted planning permission in Q1 2025. • Retail sector remains active, with £20m in new schemes beginning construction in early 2025. HOSPITALITY REMAINS A BRIGHT SPOT The hospitality sector in Northern Ireland is outperforming expectations: • £81m worth of new hospitality projects began in 2024 – a 121% increase on the
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