Resource context
This resource is an article published by Eunews and authored by Francesco Ettore Tito. It reports on Euroconstruct network estimates (with contributions from the ifo Institute in Munich) about new housing completions across Europe and discusses the macroeconomic and policy factors shaping residential construction, with implications for Europe’s ability to expand housing supply amid affordability pressures.
Europe-wide completions: decline and weak recovery
The article states that around 1.46 million new dwellings are expected to be completed across Europe in 2025, down from 1.55 million in 2024. A modest rebound is forecast for 2026, to roughly 1.51 million units, which the piece describes as stabilization but still well below pre-crisis levels. For a pan-European sustainable housing audience, these figures indicate that overall additions to the housing stock are slowing at a time when demand and policy ambitions (including energy renovation and lower-carbon construction) put pressure on supply capacity.
Drivers behind the construction slowdown
Several constraints are highlighted as contributing to the reduced pace of new build delivery: higher interest rates, falling household purchasing power, and a sharp rise in construction costs. The article also points to legislative and fiscal changes that have weakened investment incentives, including reductions in support schemes for new construction and the introduction of taxes that further dampen investment. An ifo Institute expert (Ludwig Dorffmeister) is cited as noting that these combined conditions are slowing both the start of new projects and the completion of ongoing ones across many European countries. 🇩🇪 Germany as a key stress case Germany is presented as one of the most critical national markets in the current cycle. The article reports an estimated 205,000 new homes completed in 2025, described as a 19% decrease versus the prior year. For 2026, completions are projected to drop further to 185,000, with only a modest improvement anticipated later (around 195,000 dwellings in 2027, according to the text). Despite some improvement signals—such as real wages and property prices—the overall conditions remain challenging. The piece notes that measures announced to speed up delivery, referred to as a “construction turbo,” have had limited effect so far.
Uneven performance across countries
The article emphasizes that the European picture is mixed rather than uniform. It highlights positive growth in completions in several countries—Czech Republic (+27%), Sweden (+21%), and Hungary (+20%)—while noting that ten European countries are still seeing declines. Among the notable decreases mentioned are France (-14%) and the United Kingdom (-10%). This uneven pattern suggests that national policy mixes, financing conditions, and market dynamics are producing different supply outcomes across Europe.
Housing density (dwellings per inhabitant)
A further comparison concerns completions per capita. Only Ireland, Poland, and Switzerland are expected to exceed 5 completed dwellings per 1,000 inhabitants in 2025. Ireland stands out in the article with more than 38,000 planned dwellings, equating to about 7 units per 1,000 residents. By contrast, Germany, the United Kingdom, and Spain are described as just above 2 units per 1,000 inhabitants, while Italy is reported as last at 1.6 units per 1,000 inhabitants.
Outlook and policy-relevant constraints
For 2026–2027, Euroconstruct is cited as forecasting minimal growth, supported in part by public investments and infrastructure interventions, but not enough to close the gap created in the preceding years. The article concludes that without more decisive action addressing costs, building regulations, and access to credit, Europe’s residential construction market risks a prolonged phase of stagnation—an outcome that would complicate efforts to deliver sufficient, affordable, and sustainable housing at scale.