Northern Ireland’s construction industry remains one of the strongest performers in the UK, with output continuing to rise and market sentiment showing cautious optimism for the year ahead, according to Rider Levett Bucknall’s (RLB UK) latest Construction Market Intelligence (CMI) report.
New regional analysis from the independent built environment consultancy states that, while the region continues to face pressures, overall construction activity in Northern Ireland is buoyant, with growth particularly strong in repair, maintenance, and wider new work across the public and commercial sectors.
Industry forecasts suggest that construction starts could accelerate further as major public sector capital programmes progress, especially in health, education and infrastructure.
Carl King, Senior Cost Manager at RLB NI, said:
“In Northern Ireland we’re seeing strong pipelines in public sector and commercial work, and continued momentum in repair and maintenance, making ours one of the most resilient construction markets in the UK.
“Despite this, there is a clear message from the industry coming through: skills shortages and infrastructure barriers are limiting how fast the sector can grow.
“Addressing these challenges will be vital if Northern Ireland is to fully capitalise on the opportunities ahead.”
The report adds that capacity constraints remain significant, with many firms reporting shortages of quantity surveyors and skilled trades, including plumbers, electricians and joiners.
These pressures are contributing to delays, squeezed margins and, in some cases, project cancellations.
RLB’s CMI shows no movement in Northern Ireland tender price inflation:
- Forecasts for 2025 have remained the same at 3%
- Forecasts for 2026 have remained the same at 3%
Across the UK, near-term market conditions remain challenging as rising input costs, including higher wage rates, continue to place pressure on contractors and outpace tender price movements.
RLB’s CMI shows only marginal movements in national tender price inflation:
- Forecasts for 2025 have seen a slight uplift from 3.03% to 3.17%
- Forecasts for 2026 have eased marginally from 3.41% to 3.27%