The Dutch construction industry's forecast-period (2016-2020) outlook is better than its review-period performance, with average annual growth in real terms set to accelerate from -0.26% during the review period (2011-2015) to 4.33% over the forecast period. This increase will be due to increased government investments, an anticipated recovery in regional and global economic conditions, and improving consumer and investor confidence.
Following two years of contraction, the Dutch construction industry rebounded in 2014, and registered growth of 3.1%. This momentum continued with a growth rate of 10.6% in 2015, driven by a declining budget deficit and improving investor confidence, which supported new investments in residential, infrastructure and commercial construction projects
Government and private sector investments in the residential, infrastructure, commercial and energy and utilities construction markets will drive the industry's forecast period growth. The Ministry of Infrastructure and the Environment (I&M) is planning to spend EUR9.0 billion (US$10.0 billion) on infrastructure, logistics and water management in 2016.
Under the Dutch national Operational Program (OP) 2014-2020, the government aims to develop the country's education system, increase the number of innovative Small and Medium Enterprises (SMEs) and improve their competitiveness, increase energy and resource efficiency, and develop under-privileged areas.
In real terms, the construction industry registered a review-period CAGR of -0.26%. However, the industry is expected to grow at a CAGR of 4.33% over the forecast period in real terms.
Timetric's Construction in the Netherlands - Key Trends and Opportunities to 2020 report provides detailed market analysis, information and insights into the Dutch construction industry including:
- Dutch construction industry's growth prospects by market, project type and type of construction activity
- Analysis of equipment, material and service costs across each project type within the Netherlands
- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Dutch construction industry
- Analyzing the profiles of the leading operators in the Dutch construction industry.
- Data highlights of the largest construction projects in the Netherlands
This report provides a comprehensive analysis of the construction industry in the Netherlands. It provides:
- Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in the Netherlands using construction output and value-add methods
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
- Analysis of key construction industry issues, including regulation, cost management, funding and pricing
- Detailed profiles of the leading construction companies in the Netherlands
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- Assess business risks, including cost, regulatory and competitive pressures.
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- Residential property prices are expected to remain buoyant over the forecast period, due to an increasing demand for residential buildings as a result of low mortgage interest rates and rising consumer confidence. According to the CBS, the country's house price index increased by 2.8%, from 86.1 in 2014 to 88.5 in 2015. The residential property price index grew by 4.1% during the first half of 2016, increasing from 87.6 in January-June 2015 to 91.3 in January-June 2016. The total number of dwellings sold grew by 16.1%, rising from 153,511 housing units in 2014 to 178,293 in 2015.
- The government's focus on affordable housing is expected to drive the growth of the residential construction market over the forecast period. The government is focusing on the construction of affordable housing projects. In January 2016, the housing ministry announced its plans to build social housing in Amsterdam and Utrecht. Accordingly, around 8,376 units are currently under construction in Amsterdam.
- The energy and utilities construction market is expected to benefit from the government's plans to increase the share of renewable energy's total energy mix under the Dutch National Renewable Energy Action Plan (NREAP). Under this plan, the government aims to increase the share of renewable energy in the total consumption from 6.0% in 2015 to 14.0% by 2020.
- The country has one of the most highly developed transport networks in Europe. To maintain its position, continued investments are expected in transport infrastructure over the forecast period. In March 2016, the government allocated EUR10.0 billion (US$11.1 billion) for the development of national roads, rail and water infrastructure by 2018.
- Improved economic conditions and household spending will help the retail industry grow over the forecast period, which will result in growth in the retail buildings category. According to the CBS, the country's retail turnover volume index increased by 2.3%, going from 92.7 in 2014 to 94.8 in 2015. It increased by 0.7% during the first five months of 2016, going from 91.0 in January-May 2015 to 91.6 in January-May 2016.