Apartment construction in Europe at lowest level since 2015

At the moment, in Europe, 1.5 million units are being built, 5.5% fewer than in 2024.

In Germany, in the worst-case scenario, only 175,000 dwellings will be built in 2026, 15% fewer than in the previous year. This is evident from projections by the EUROCONSTRUCT forecasting network, as reported by the Munich-based ifo Institute.

As ifo, a member of EUROCONSTRUCT, reports, positive signals are coming from northern Europe in particular.

– Markets in the Nordic countries are recovering strongly after the previous slump, says ifo construction expert Ludwig Dorffmeister. In Sweden (plus 12%), more living space will be built as early as 2025.

In 2026, completions will also increase in Denmark (plus 28%), Finland (plus 23%) and Norway (plus 13%). The trend in Poland is similar (plus 10%). The number of dwellings built in 2026 will fall compared to 2025 in Austria (minus 9%), France and Italy (minus 3%).

In Germany, the negative trend continues. In the worst-case scenario, only 175,000 dwellings will be built in 2026, 15% fewer than in the previous year. High construction costs are currently hampering the recovery of the market, Dorffmeister emphasized.

Euroconstruct

ifo Munich

Ludwig Dorffmeister

apartment building in Europe

construction of housing units in Europe

construction of apartments in Europe