Minimal growth in 2024 stems from low investor confidence in residential projects, but EU funding will drive infrastructure growth as construction firms pursue international expansion.
Key takeaways
The construction market has experienced minimal growth in 2024, largely impacted by a slowdown in the residential sector driven by weak investor and consumer confidence. However, output is projected to recover in 2025, although high interest rates and persistent inflation may continue to challenge investment levels.
Construction
Europe rate trends: Construction
- EU funding will remain a key source of support for construction activity, with a proposed EUR807 billion spent on reforms and projects, which will contribute to infrastructure, energy and utilities projects as a main focus.
- European construction groups continue to be the most internationalized with 63% of their sales obtained outside their domestic markets, many insurers follow their cross border offering, capacity and expertise.
- Response times improving and underwriting hubs emerging across region will mature teams and give more consistent responses, leveraging specialized sector knowledge and making less boundary restrictions.
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