Northern Ireland’s Construction Sector Enters 2025 with Strength and Optimism
As we step into 2025, Northern Ireland’s construction sector is experiencing a surge in growth, driven by political stability, strategic government planning, and an improving economic landscape. According to AECOM’s Ireland Annual Review 2025, the region has outperformed all other UK regions, with a remarkable 10.5% increase in annual construction output.
Jody Wilkinson, AECOM’s Northern Ireland Director, highlights this strong performance, attributing it to a shift away from short-term economic thinking towards longer-term, comprehensive planning. With Northern Ireland’s projects increasingly integrated into all-island infrastructure programmes, the potential for a more coordinated and efficient approach to construction and development has never been greater.
Key Findings
The report reveals that from Q2 2023 to Q2 2024, construction output saw a 6.3% rise in new work and a substantial 17.7% increase in repair and maintenance. Tender price inflation stabilised at 1.8% in 2024 after two years of volatility, with a forecasted rise to 2.5% in 2025. This signals a more balanced market aligning with wider economic trends.
Export performance also remains strong, with Northern Ireland maintaining its position as a leader in docks-based physical exports and excelling in plant, machinery, and vehicle production—key sectors responding to global decarbonisation demands.
The tourism sector continues to present significant opportunities, with cross-border tourism between Northern Ireland and the Republic of Ireland having more than tripled in the past decade. This growth strengthens economic collaboration and bolsters investment in hospitality and retail, evident in the 3.7% year-on-year increase in Belfast city centre footfall.
Challenges and Areas for Improvement
Despite these successes, housing construction declined by 5% in 2024, largely due to ageing drainage and wastewater infrastructure, which remains a significant barrier to development. AECOM stresses the need for targeted investment in these essential systems to unlock the housing market’s full potential.
Biodiversity also emerged as a key focus area in 2024, with opportunities for collaboration and technological advancements to enhance Northern Ireland’s natural and built environments.
Future Growth Across Key Sectors
Healthcare remains a priority, with construction commencing on the new Children’s Hospital in Belfast this year. Meanwhile, the education sector anticipates significant investment, with multiple new school tenders expected, paving the way for sustained growth.
Retail and hospitality continue to thrive, with Belfast hotels recording their highest-ever revenue per available room in June 2024, further reinforcing investor confidence.
A Call for Strategic Planning
AECOM advocates for a programmatic approach to infrastructure, where interconnected projects align under common objectives to maximise efficiency and long-term benefits. Political leadership and cross-sector collaboration will be critical in ensuring sustained progress.
“Northern Ireland has demonstrated resilience and adaptability,” says Wilkinson. “Now is the time to embed this forward-thinking approach into planning and delivery, ensuring a prosperous and sustainable future.”
As architects, we at David Maxwell Architects recognise the importance of these developments. Thoughtful design, sustainable construction practices, and strategic long-term investment are key to ensuring that Northern Ireland’s built environment continues to thrive. By embracing innovation and collaboration, we can contribute to a future that is both economically robust and environmentally responsible.