CONSTRUCTION OUTLOOK
Dave Thompson, VP for UK and Ireland at CIS.
CONSTRUCTION STARTS ARE FORECAST TO RISE BY 2% IN 2026 AND 10% IN 2027 AFTER GEOPOLITICAL UNCERTAINTY AND ECONOMIC HEADWINDS CREATED CHALLENGING CONDITIONS IN 2025, ACCORDING TO CIS, POWERED BY HUBEXO… Recovery forecast for Northern Ireland construction industry in 2026
Northern Ireland’s construction industry is poised for recovery after a difficult 2025, with project starts predicted to grow by 10% in 2027, according to the latest Construction Industry Forecast from CIS, powered by Hubexo. The forecast reveals that construction starts are projected to have declined by 17% in 2025 due to geopolitical uncertainty and economic headwinds. However, activity is expected to begin recovering in 2026 with 2% growth, accelerating to 10% in 2027. Dave Thompson, VP for UK and Ireland at CIS, powered by Hubexo, says, “While 2025 has been a challenging year for Northern Ireland’s construction sector, the fundamentals for recovery are in place. “Strategic government investment in
infrastructure, education and healthcare, combined with improving economic conditions, will drive renewed growth from 2026 onwards. Firms that position themselves now to capture opportunities in emerging sectors will be best placed to benefit from this recovery.” PRIVATE HOUSING SHOWS RESILIENCE Private housing construction is forecast to grow by 39% in 2026 and a further 18% in 2027, following a modest 3% increase this year. The sector faced significant challenges in 2025, including political uncertainty, affordability issues and water infrastructure constraints, which dampened planning approvals and construction activity.
Social housing, meanwhile, experienced a sharp 54% decline in starts in 2025, though modest recovery is anticipated with 2% growth in 2026 and 8% in 2027. OFFICE SECTOR DEFIES WIDER MARKET TRENDS The office sector has emerged as a bright spot in 2025, with project starts growing by 42% as demand for high-quality commercial spaces continues. New hybrid working policies are bringing people back to the office on a more consistent basis, driving demand for Grade A facilities. Growth is expected to continue at 18% in 2026, though starts are forecast to decline by 14% in 2027 as the development pipeline moderates.
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