Construction workloads in NI continued to decline through the final quarter of 2025 and at a fast rate than in other UK regions according to the latest Royal Institution of Chartered Surveyors (RICS) Construction Monitor.
Overall, a net balance of -16% of NI respondents reported a fall in construction workloads in Q4, which is the lowest balance seen across the UK regions, and below the UK average which sits at -6%.
Looking at the subsectors, all of them saw a decline in activity in the quarter. Net balances of -25% and -14% of respondents reported falls in public and private housebuilding activity respectively, a net balance of -9% of respondents reported a decline in private commercial activity, a net balance of -23% noted a fall in private industrial activity and when it came to other public works, a net balance of -16% of respondents indicated that this had fallen.
When it comes to infrastructure activity, a net balance of -27% of NI respondents noted a fall, and although firmly negative, is up from the -42% seen in Q3.
With workloads falling, NI surveyors are hesitant about the outlook. Respondents in NI expect that workloads will be broadly flat over the next year (a net balance of 2%), although this is an improvement from the -5% seen in the survey previous.
Surveyors in NI also expect profit margins to worsen over the next year with a net balance of -28% of respondents anticipating profit margins to fall during 2026, which is the lowest this balance has been in over two years.
Surveyors in NI also report that skills shortages have worsened. 57% of surveyors report a shortage of bricklayers, up from the 44% seen in the Q3 report and 54% report a shortage of quantity surveyors, up from the 48% that was noted in the survey previous. The shortage of other construction professionals seems to have remained the same quarter on quarter with 48% of NI respondents reporting shortages in Q4, the same balance which was seen in Q3
Jim Sammon, RICS NI Construction Spokesman, said: “The construction sector in Northern Ireland rounded off the year in some very challenging market conditions, and it’s expected that this will continue into the new year. Construction activity overall in NI continues to face a downturn across all subsectors, and it’s of particular concern to see the decline in public sector activity given the vital role it plays to the industry. We need to see appropriate public sector investment both to improve our infrastructure and support economic growth.
“RICS has also called for more investment in retrofitting our housing stock. The Warm Homes Plan will provide funding to deliver energy efficiency and home upgrades in England. Money will come to the NI Executive through the Barnet Formula as a result of this, though it won’t be ringfenced for the same purpose here. We would urge the NI Executive to use this money to invest in improving the sustainability of our housing stock. Every pound invested in insulation, heat pumps, solar panels and batteries helps lower energy bills and creates employment opportunities which are rooted in our local communities and in turn support the economy.”