DUBLIN–(BUSINESS WIRE)–The “Europe Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
This report provides data and trend analyses on Europe construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, top cities construction data, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.
The European construction industry is projected to underperform compared to the global market in Q4 2023 and Q1 2024. A higher interest environment and soaring construction costs have resulted in the downfall of the construction market in H1 2023. Several construction firms, especially in the German market, have announced liquidation due to cost blowouts and higher interest rates. The publisher expects the trend to further continue from the short to medium-term perspective.
It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.
The construction market in France is also facing headwinds, as the demand continues to decline. Construction firms continue to express a pessimistic sentiment, leading them to curtail their purchasing activities. The surge in construction material prices hindered their procurement efforts, as the pace of cost inflation increased significantly in the middle of the third quarter. Overall, the publisher maintains a downbeat outlook for the European construction industry.
An increasing number of businesses have entered liquidation in the United Kingdom and German market
The slowdown in housebuilding projects, coupled with persistent inflation and delays in government-funded infrastructure projects, has resulted in thousands of construction companies going out of business in the United Kingdom. Data from the Insolvency Service, a government agency, reveals that approximately 4,280 businesses became insolvent in the 12 months leading up to June, based on a report published on the Financial Times. This marked a 16.5% increase compared to the same period in the previous year. With a series of large rail and road infrastructure projects that have been delayed by the government, the publisher expects the trend to continue in the United Kingdom market from the short-term perspective.
Similar trends have also emerged in the German construction industry, wherein high-profile construction firms have announced liquidation in 2023. Centrum Group and Development Partner and Project Immobilien Gruppe, just to name a few. Factors including rising interest rates, expensive construction materials, slowing demand, and a shortage of skilled workers have led to the downfall of these construction firms in the German market. Homebuilding activities have slowed down significantly, with the number of permits falling 31.5% in July 2023. With the decline in demand, the trend is projected to further continue from the short-term perspective in Germany.
The slowdown in housing projects is hampering the growth of the residential market in France
Based on the data from the Federation des promoteurs immobiliers (FPI), the Federation of Property Developers in France, only 16,912 projects were launched in Q1 2023. This is the lowest level recorded since 2010. According to the federation, the sales of new builds have also declined substantially by 25% in Q1 2023, compared to the same quarter in 2022.
Several factors including the decline in the number of building permits being granted and rising construction material costs are behind the slowdown in the housing construction industry in France. Access to credit has also resulted in the decline in demand in the housing market in France. The rules from Le Haut Conseil de stabilite financiere (HCSF), have limited borrowers to debt levels of only 35%, since the beginning of 2022.
The federation has now asked the French government to intervene and take appropriate measures to revive the growth of the residential construction market. However, the publisher expects the segment to keep facing macroeconomic headwinds from the short-term perspective.
The German government is working on a relief package to revive the struggling construction industry
With the construction market facing severe headwinds due to rising interest rates and material prices, which has led to the downfall of several businesses in the sector, the government is now working on a relief package aimed at reviving the industry growth in Germany.
In September 2023, the government announced its decision to set aside proposed building regulations, opting instead for a US$47 billion relief package to support the construction market. Berlin is expected to allocate 18 billion euros for affordable housing until 2027, with more investment expected from federal states and municipalities.
Furthermore, the government also stated that it will oppose the new European Union legislation proposals that could mandate upgrades for millions of buildings, including measures like insulation or efficient heating systems. The legislation is expected to put too much burden on the government and homeowners. The authorities are also planning to convert vacant offices and shops into housing units by allocating 480 million euros over the next two years.
The construction sector is in dire need of liquidity in Germany. The market does not need subsidies, but rather incentives for investment to support the growth recovery of the residential construction market in Germany.
This title is a bundled offering, comprising 13 country reports. Each country report covers the following modules:
- Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry.
- Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
- Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of top 10 cities by construction value for each country.
For more information about this report visit https://www.researchandmarkets.com/r/qdu5ol
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