CONSTRUCTION OUTLOOK
growing by 101% in 2025. Growth is expected to continue at 70% in 2026, before moderating with a 9% decline in 2027. The full findings and many more sector- by-sector breakdowns are available in the new Construction Industry Forecast 2025–2027 from CIS. Packed with expert insights, the report delivers tailored, data- driven intelligence to help construction industry professionals in Northern Ireland grow their business, mitigate risk and make well-informed strategic decisions. “The community and amenity sector has performed strongly, with project starts growing by 101% in 2025.”
HOTEL AND LEISURE SECTOR SEES SURGE The hospitality sector has performed strongly, with the Northern Ireland Hotels Federation’s Hotels 2025 report highlighting continued growth driven by new investment and projected rises in visitor numbers. Hotel and leisure project starts surged by 174% in 2024, with growth remaining robust at 56% in 2025. A 47% decline is projected for 2026 following reduced approvals, though a rebound of 11% is anticipated in 2027. PUBLIC SECTOR INVESTMENT SUPPORTS LONG-TERM OUTLOOK Budget allocations are supporting the longer-term outlook across key sectors. The Northern Ireland budget allocated £270m in capital funding for education and £933m for infrastructure, focusing on roads, public transport and energy projects. Education sector starts are estimated to have declined by 30% in 2025 and are predicted to drop to 11% in 2026, before recovering with 2% growth in 2027. Health sector starts are forecast to fall 13% in 2025 and 28% in 2026, though
a 10% recovery is projected for 2027 as budget allocations take effect. Civil engineering starts are expected to decline by 21% in 2025 with a further 6% decline in 2026, before recovering with 24% growth in 2027. INDUSTRIAL AND RETAIL SECTORS FACE HEADWINDS The industrial sector has experienced a challenging period, with construction starts estimated to decline by 57% in 2025 and a further 15% in 2026, due to geopolitical uncertainty and cost pressures. The sector is expected to recover slightly in 2027 with 3% growth. Retail construction starts are forecast to decline by 17% in 2025 and a further 19% in 2026 despite a 10% increase in retail planning approvals and 4.7% growth in retail output during Q2 2025. Recovery is expected in 2027 with a 10% increase in projects starting on site. COMMUNITY AND AMENITY SECTOR SHOWS STRONG GROWTH The community and amenity sector has performed strongly, with project starts
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