Netherlands Construction Market to Expand Despite Short-Term Challenges

Strategic Insights -

The Netherlands construction industry is poised for expansion, supported by growing spending in the non-residential sector and investments in manufacturing and transportation projects. However, the industry will face short-term headwinds due to rising construction costs and a decline in building permits. The industry's output is also expected to be impacted by uncertainty caused by the US trade war and the nitrogen crisis, which has led to a halt in housing investment projects worth EUR138 billion ($150.4 billion). Despite these challenges, the industry is expected to register an annual average growth of 2.8% between 2026 and 2029, driven by investments in the industrial, infrastructure, and residential sectors.

Key Takeaways:

  • The Netherlands construction industry is expected to expand in real terms by 1.7% in 2025, driven by rising spending in the non-residential sector and investments in manufacturing and transportation projects.
  • Rising construction costs and a decline in building permits will pose short-term challenges to the industry's output.
  • The industry's output is also expected to be impacted by uncertainty caused by the US trade war and the nitrogen crisis.
  • The industry's growth will be driven by investments in the industrial, infrastructure, and residential sectors between 2026 and 2029.
  • The government's goal to achieve 100% zero-emission vehicles (ZEV) in new car sales by 2030 and invest EUR25 billion ($26.5 billion) to build new roads by 2028 will also support growth.
  • The housing cost for existing houses increased by 10.9% year-on-year (YoY) in the first three months of 2025, followed by an annual growth of 8.7% in 2024.
  • The US's tariffs on European goods are expected to negatively impact Dutch exports and business sentiment.
  • The industry's growth will be contingent on the successful implementation of the EU's Recovery and Resilience Facility, which aims to support the Dutch economy's transition to a greener economy.

Statistics:

  • The Netherlands construction industry is expected to expand in real terms by 1.7% in 2025.
  • The industry's output is expected to be impacted by uncertainty caused by the US trade war, which is likely to weigh on investor confidence and spending.
  • The housing cost for existing houses increased by 10.9% year-on-year (YoY) in the first three months of 2025.
  • The industry's growth will be driven by investments in the industrial, infrastructure, and residential sectors, with an annual average growth of 2.8% between 2026 and 2029.
  • The government's goal to achieve 100% zero-emission vehicles (ZEV) in new car sales by 2030 and invest EUR25 billion ($26.5 billion) to build new roads by 2028 will also support growth.
  • The US's tariffs on European goods are expected to negatively impact Dutch exports and business sentiment.

Sources:

  • "The Netherlands Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report.
  • Statistics Netherlands (CBS) - [https://www.cbs.nl](https://www.cbs.nl)
  • Land Registry - [https://www.kadaster.nl](https://www.kadaster.nl)
  • European Commission - [https://ec.europa.eu](https://ec.europa.eu)
  • ResearchAndMarkets.com - [https://www.researchandmarkets.com](https://www.researchandmarkets.com)