Construction output in Northern Ireland rose by 7.3% in the year to June 2025, reaching a 15-year high and outperforming the rest of the UK, an industry review reveals.
Costs also stabilised as tender price inflation flattened at 3% and supply chains matured, but labour costs rose by 5.5%.
New work remains 7% above pre-pandemic levels, and private non-housing is expected to be one of the fastest-growing sub-sectors into 2026, aligning with wider trends across the island of Ireland.
But in common with other bodies in the sector, wastewater infrastructure remains the key barrier to unlocking planned growth and meeting long-term need across the north.
The findings come in the 51st annual construction review from global buildings and infrastructure leader AECOM, which has been operating across the island of Ireland for more than 165 years.
The review points to the return of political stability in 2024 as helping restore confidence and unlocking stalled plans, providing the platform for the construction sector’s strong rebound.
It says activity is being driven in part by exceptionally strong repair and maintenance performance, now 55.8% above pre-pandemic levels, alongside a 25.9% increase in housing output, which accounted for more than a third of total activity in the second quarter of 2025.
But only one new social housing start was recorded over the year, far below what is required to meet long-term needs.
With more than 49,000 households on waiting lists and wastewater constraints blocking new development in Belfast, Newry and Derry, the review stresses that the north cannot deliver on its 15-year housing strategy without systemic infrastructure reform.
The document argues that Northern Ireland needs clearer long-term funding, more collaborative delivery models, earlier supply-chain involvement, stronger public-sector capacity alongside a reimagining of public-private partnerships, and faster planning and consenting processes. These priorities match the wider all-island focus on creating systems that can turn investment into results.
It adds that Northern Ireland stands to benefit from the finalised 2050 investment strategy, which will build on the UK’s 10-year infrastructure strategy.
But without greater readiness, it may struggle to turn this long-term investment into real outcomes.
“Northern Ireland enters 2026 from a position of real strength, with output, sentiment and sector performance all moving in the right direction,” said Nick Perrin, head of infrastructure, surface transportation, aviation and ports (UK & Ireland) at AECOM.
“We have the ambition and the momentum, but delivery now depends on readiness. Strong investment and renewed political clarity provide the foundation, but readiness provides the capability. Northern Ireland’s potential for growth is significant, and it must seize this dynamic moment and make the most of the opportunities ahead.”
The AECOM review says that despite fiscal pressures, the public sector continued to deliver new community assets throughout 2025.
Major projects advanced during the year include the £70 million Fermanagh Lakeland Forum, set to become the region’s first ultra-energy-efficient leisure facility; the £100m Belfast Stories cultural and tourism destination; the £671m Children’s Hospital at the Royal Victoria Hospital; and Ulster University’s Sports Air Dome, an all-island shared space initiative.
Meanwhile the Construction Industry Training Board (CITB) forecasts Northern Ireland’s construction output to grow by 2.8% in 2026, ahead of the UK’s 2.3%.
This is expected to be led by repair and maintenance, rising 5.1%, while new work is projected to increase by 1.4%, supported by stronger gains in private non-housing (5.5%) and infrastructure (4.2%).
