“A new construction cycle emerges: as public stimulus fades, productivity, innovation, and competitiveness take the lead.”
After years of extraordinary expansion, Italy’s construction market is entering a new phase. The two engines that fuelled its growth – fiscal incentives and public funding for infrastructure projects – are now losing momentum, giving way to a slower but more balanced phase. Output, after a long period of growth, declined by about 2% in 2024 and is expected to contract further in 2025, before rebounding next year and stabilizing thereafter.
The residential sector is driving the correction. With the Superbonus 110% winding down and credit conditions tightening, both renovation and new housing activity have fallen sharply – a cumulative drop of more than 20% from 2022 to 2025.
At the same time, civil engineering and non-residential construction continue to support the market. The National Recovery and Resilience Plan (PNRR) still drives an exceptional wave of investment. Since 2019, over €380 billion in projects have been tendered and €280 billion awarded, ensuring high levels of activity across infrastructure, education, healthcare, and logistics.
The sector now stands between two waves – the fading impulse of incentives and the long tail of public-driven investment. This transition will shape the new construction cycle: less expansionary, more selective, and increasingly guided by structural demand and innovative capacity.
Get the full picture of Europe’s construction market outlook to 2028 at the 100th EUROCONSTRUCT Jubilee Conference.
100th EUROCONSTRUCT-Conference
24 & 25 November 2025
Les Salons Hoche Paris, France
European construction market forecasts towards 2028
Reinventing the construction industry
For any questions regarding the 100th EC-Conference please contact BDOAdvisory.euroconstruct100@bdo.fr
