Though a contraction of 5% is anticipated for 2026, a recovery of 14% is expected for 2027.

Within private housing, Glenigan highlights that starts weakened at the start of the year due to buyer confidence being suppressed.

This is due to geopolitical uncertainty continuing to weigh on market sentiment. Any recovery is contingent on an improvement in market conditions, warns Glenigan.

In the research provider’s latest construction industry forecast, overall Glenigan anticipates a 1% contraction in construction this year before recovering with an 11% increase in 2027.

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Increased government spending in schools, hospitals and other key public non-housing sectors is expected to see these sectors thrive.

This is in contrast to the financial situation faced by private contractors, according to Glenigan economics director Allan Wilen.

“While economic fundamentals are improving gradually, the translation into construction activity has been slow, with a more meaningful upturn now expected from 2027,” said Allan.

“Developers are increasingly prioritising schemes with stronger margins or lower risk profiles, leading to a narrowing of the active pipeline.”