Overall construction activity in Northern Ireland remained subdued in the first quarter of 2025, according to the latest Royal Institution of Chartered Surveyors (RICS) construction monitor. However, surveyors appear more optimistic about the year ahead than they were, with workloads expected to rise.
Overall, a net balance of -4% of respondents in NI reported a fall in construction workloads in Q1. Looking at the subsectors, private housing and private industrials workloads were flat. Surveyors report that workloads in public housing and private commercial works declined (net balances of -11% and -15% respectively). Workloads in both infrastructure (a net balance of 60%) and other public works (a net balance of 8%) were reported to have risen.
Looking ahead, Northern Ireland respondents’ expectations for overall construction workloads in NI are more positive than seen previously, as a net balance of 26% of surveyors expect a rise in the 12 months ahead, up from 10% in the previous survey. This figure is the highest across all UK regions and above the UK average which sits at 17%.
Whilst NI respondents expect workloads to rise, they anticipate that profit margins will be flat. This is however an improvement, with surveyors having previously pointed to reduced profit margins over successive quarters.
Regarding skills, respondents in NI continue to report labour shortages. 55% of respondents reported a lack of quantity surveyors, up from 52% in Q3 and 37% note a shortage in construction professionals. Whilst 38% of NI surveyors report shortages in bricklayers, this is down from the 47% seen in Q4 2024.
Jim Sammon, RICS NI Construction Spokesman, said: “Whilst the NI construction market continued to face challenges through the first quarter of the year, it is encouraging to see that surveyors appear more optimistic on outlook, albeit that anecdotally they highlight a range of risks locally and globally. Whilst it’s positive to see that surveyors report increases in public works and infrastructure workloads, issues such as planning delays, a lack of wastewater infrastructure and increased cost of materials are continuing to impact the sector. But whilst these challenges are expected to continue through the rest 2025, it is hoped that Northern Ireland’s construction industry will be on a path of positive momentum through the course of this year.”