René Muschter
Research Expert covering Industry & Mobility
Construction industry in Europe - statistics & facts
The construction industry is a cornerstone of the European economy. In 2024, the sector generated a combined EU construction industry turnover of over 2.3 trillion euros, with specialized construction activities covering trades such as electrical installation, plumbing, and roofing accounting for the largest share. Germany ranked first among all European Union (EU) member states by construction turnover, ahead of France and Italy. The sector’s weight as a share of gross domestic product (GDP) varied widely across the continent, from a high of 13.8 percent in Albania to below three percent in Ireland and Greece.
A sector employing millions with uneven national weight
Construction is one of Europe’s most labor-intensive industries. The EU construction employment by segment totaled approximately 10.8 million workers, with specialized activities making up the largest segment by far. The sector represented about 6.9 percent of total EU employment in the third quarter of 2025, though national figures diverged considerably. Romania recorded the highest construction employment share by country at 11.1 percent, more than double the EU average and the highest rate on the continent.
Residential activity recovers, but order books and costs weigh on the industry
After a year-over-year decline in 2022 and 2023, EU housing building permits recovered modestly in 2025, rising 5.1 percent to over 1.6 million units. Despite this uptick, overall order books remained under pressure: as of March 2026, the balance of order books in EU construction stood at minus 12.2, indicating that more firms reported below-normal backlogs than above-normal ones. Construction costs added a layer of difficulty, with building costs in European cities reaching 5,386 U.S. dollars per square meter in Zurich and Geneva as of 2025 — roughly double the cost in cities such as Warsaw or Madrid.
Confidence stays negative as demand shortfalls and labor gaps persist
The EU construction confidence indicator stood at minus 5.2 in May 2026, remaining in negative territory for the third consecutive year, though the reading was less severe than its 2024 trough. Insufficient demand was the most common constraint cited by firms, flagged by nearly 30 percent of respondents in May 2026, while a shortage of labor ranked second, according to data on factors limiting EU construction activity. Together, these two constraints have remained the industry’s most persistent structural challenges since 2022.
