Northern Ireland’s construction market is showing strong signs of resilience and recovery heading into 2025, according to the latest forecast from industry intelligence specialists CIS, powered by Hubexo.
After a turbulent 2024, where total project starts fell just 2%, the new data shows the market stabilising this year – and surging by a remarkable 71% in 2026. This uplift is underpinned by significant capital investment, a healthy public sector pipeline and signs of renewed confidence across health, education and industrial sectors.
According to the CIS Irish Construction Forecast 2025–2027, total construction starts in Northern Ireland are set to rise from £1.55 billion in 2024 to £1.58 billion in 2025 and £2.7 billion in 2026.
Health & Education projects lead resurgence
Northern Ireland is seeing major investment in its public estate, with healthcare and education emerging as key growth drivers.
- Work is now underway on the landmark £389 million Children’s Hospital in Belfast.
- The £375 million Strule Shared Education Campus in Omagh is also under construction.
- Education starts rose by 200% in 2024 to £532 million.
- Health project starts jumped to £505 million in Q1 2025 alone.
These developments follow a budget allocation of £391 million for health capital investment and £270 million for education.
Housing bottlenecks beginning to ease
While housing delivery has been challenged by infrastructure constraints – particularly around waste and water systems – 2026 is expected to be a pivotal year. Following a 2% dip in 2025, residential starts are forecast to increase by 46% in 2026 and a further 8% in 2027.
- Social housing starts rose 94% in 2024.
- 424 new homes were started in Q1 2025 across 24 schemes.
- 1,606 new homes received planning permission in Q1 2025, worth £191 million.
Non-residential investment holding strong
Northern Ireland’s industrial and commercial sectors continue to attract investment, even amid economic headwinds.
- Non-residential starts are forecast to rise 3% in 2025 and 79% in 2026.
- Industrial project values hit £206 million in 2024.
- Office starts more than doubled in 2024 (+125%), with 31 projects granted planning permission in Q1 2025.
- Retail sector remains active, with £20 million in new schemes beginning construction in early 2025.
Hospitality remains a bright spot
The hospitality sector in Northern Ireland is outperforming expectations:
- £81 million worth of new hospitality projects began in 2024 – a 121% increase on the previous year.
- These include 585 new hotel beds, with 158 more underway in Q1 2025.
- Planning approvals remain strong, with 36 new hospitality projects valued at £34 million greenlit in Q1 2025.
Cautious optimism in civil and utilities
Infrastructure remains a critical priority for the region, though delivery challenges persist. New civil project starts fell 70% by value in 2024 to £173 million, but £933 million has been earmarked in the latest budget to boost roads, public transport and energy projects.
CIS analysts expect this to support a renewed surge in activity through 2026 as procurement frameworks stabilise and capacity improves.
Republic of Ireland outlook
In the Republic, CIS forecasts a 19% increase in underlying project starts in 2025, driven by strong public investment in health, education, and utilities. Housing, following a front-loaded 2024, is expected to stabilise before rebounding in 2027. Civil and utilities starts are also projected to climb 27% next year, backed by a €14 billion fiscal windfall.
Pat McGrath, Insights Manager at CIS, commented: “After a volatile year for Northern Ireland’s construction sector, the outlook is improving significantly. With major flagship projects underway and critical infrastructure investment being unlocked, we expect growth to accelerate through 2025 and peak in 2026. It’s a crucial time for delivery – and for suppliers and contractors to prepare.”
For access to the full CIS Irish Construction Forecast 2025–2027 and detailed regional data, visit www.cisireland.com