Northern Ireland is entering 2026 with its strongest construction performance in a decade and a half, according Aecom鈥檚 Ireland Annual Review 2026.聽
Construction output in Northern Ireland rose by 7.3% in the year to June 2025, reaching its highest level since 2010 and outperforming the rest of the UK at 2.2%.
The Review observes that the return of political stability in 2024 helped restore confidence and unlock stalled plans, providing the platform for the construction sector鈥檚 strong rebound.
Activity is being driven in part by exceptionally strong repair & 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.聽
聽However, only one new social housing start was recorded over the year, which is 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-Londonderry, Aecom warns that Northern Ireland cannot deliver on its 15-year housing strategy without systemic infrastructure reform.
It 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, the report says.
It adds that Northern Ireland stands to benefit from the finalised Investment Strategy for Northern Ireland 2050, which will build on the UK鈥檚 10-year Infrastructure Strategy. But without greater readiness, it may struggle to turn this long-term investment into real outcomes, Aecom reckons. A clear roadmap will help unlock investment, accelerate progress and strengthen communities across the country, it suggests.
鈥淣orthern Ireland enters 2026 from a position of real strength, with output, sentiment and sector performance all moving in the right direction. We have the ambition and the momentum, but delivery now depends on readiness,鈥� said Nick Perrin, head of infrastructure, surface transportation, aviation and ports for Aecom UK & Ireland.
鈥�2026 must be a year of delivery readiness. Strong investment and renewed political clarity provide the foundation, but readiness provides the capability. Northern Ireland鈥檚 potential for growth is significant, and it must seize this dynamic moment and make the most of the opportunities ahead.鈥�
The report also shows that costs have largely stabilised, with material prices flat and labour costs increasing 5.5% due to competition for skills. 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.
Wastewater infrastructure remains the single biggest constraint on housing delivery, while planning and regulatory delays continue to slow the progress of essential infrastructure, Aecom says. Public-sector and supply-chain resource shortages further limit delivery pace, and short-term budgeting cycles make it difficult to plan and commit to long-term capital programmes with confidence.
Looking ahead, the Construction Industry Training Board (CITB) forecasts Northern Ireland鈥檚 construction output to grow by 2.8% in 2026, ahead of the UK鈥檚 2.3 per cent. Growth is expected to be led by repair & 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%).
Aecom concludes that while the foundations for growth are strong, the pace at which Northern Ireland can deliver homes, water infrastructure, energy systems and transport improvements will now depend on system-wide readiness across the public sector and supply chain.
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