European construction investment forecast to rebound in 2026

That’s according to the 69th edition of the European Construction Industry Federation’s (FIEC) Statistical Report, which offers a country-by-country overview of construction activity in Europe.

After a 2.1% drop in EU construction investment in 2025, FIEC forecast that investment would grow by 2.7% this year, driven by a bounce in building activity and continued strength in civil engineering.

Civil engineering investment is expected to grow by 4.1% in 2026, having increased by 3.8% in 2025.

Meanwhile building investment is forecast to grow by 2.2% in 2026, after a decline of 3.5% in 2025. New housebuilding is expected to increase 5.1%, albeit from a low base. Growth in renovation investment is forecast to be more modest, at 1.3%.

In the non-residential sector, grown of 1.4% is expected in 2026, after a contraction of 1.8% last year.

FIEC said that overall, construction entered 2026 “in a better position” than in 2025 but the performance over the rest of the year depends on financing conditions, public investment capacity, energy and materials costs, administrative delays, labour availability, and company solvency.