Northern Ireland’s construction market has entered 2026 in a more stable and confident position than a year ago, supported by a strong pipeline of public sector investment and rising demand for housing, according to Rider Levett Bucknall (RLB UK).
The independent built environment consultancy’s latest regional market analysis shows major programmes in healthcare and education continue to anchor activity across the region, while broader cost pressures have eased, helping to create a more predictable environment for clients and contractors.
Contractors’ order books remain healthy across Belfast and the wider region, supported by substantial public sector investment and a steady flow of development activity. Construction output grew by 7.3% in the year to June 2025, while repair and maintenance activity has surged well beyond pre-pandemic levels.
Noel Devine, RLB UK Partner based in Belfast, said:
“With supply chains behaving more predictably and materials costs settling, clients have a window of opportunity to plan projects with greater certainty. Labour shortages remain the biggest pressure, but the market overall is busy without being overheated.
“Looking ahead, the pipeline remains strong across healthcare, education, residential and industrial sectors, which may remain relatively protected from any impact of the Middle East conflict. Major projects such as the new Children’s Hospital in Belfast and the Strule Shared Education Campus represent hundreds of millions of pounds of committed investment and will continue to shape market conditions over the coming years.”
According to RLB UK’s latest Construction Market Intelligence, the residential sector represents one of the biggest opportunities for growth. Private housing starts had been forecast to increase by 39% in 2026 following a difficult 2025. However, infrastructure constraints, particularly wastewater capacity, continue to delay thousands of planned homes across key urban areas.
The industrial sector is also performing strongly, supported by demand from manufacturing, logistics and life sciences, while Belfast’s office market has seen a rise in development starts as demand for modern Grade A workspace grows.
Despite infrastructure and planning challenges, the strength of Northern Ireland’s project pipeline and sustained public sector investment underpin a positive medium-term outlook for the construction sector.
Tender price growth is currently settling at around 3%, reflecting calmer supply chains and more stable material costs. However, shortages of skilled labour, particularly in specialist trades such as MEP and masonry, remain the main driver of inflation.