Construction workloads fell for a third consecutive quarter in Northern Ireland between January and March, an industry monitor shows.
But the report from the Royal Institution of Chartered Surveyors (Rics) suggests that activity is likely to grow stronger going forward, with surveyors’ optimism in the north currently the highest in the UK.
The latest findings reveal that the market remains stable, albeit subdued.
Broken down by sub-sectors, private housing and private industrials workloads were flat in quarter one.
Surveyors reported that workloads in public housing and private commercial works declined by 11% and 15% respectively, but activity in both infrastructure and other public works were reported to have risen (indeed infrastructure workloads rose at sharpest rate since early 2021)
Looking ahead, Northern Ireland respondents’ expectations for overall construction workloads are more positive than seen previously, as 26% of surveyors expect a rise in the next 12 months ahead (up from 10% in the previous survey).
But while workloads are predicted to rise, respondents anticipate that profit margins will be flat, although this still represents an improvement, as they previously pointed to reduced profit margins over successive quarters.
Labour shortage remain a significant concern, with 55% of survey participants drawing attention to difficulties in the recruitment of quantity surveyors.
Jim Sammon
Rics’ regional construction spokesman Jim Sammon said: “Whilst the Northern Ireland construction market continued to face challenges through the first quarter of this year, it is encouraging to see that surveyors appear more optimistic on outlook, albeit that anecdotally they highlight a range of risks locally and globally.
“While it’s positive to see that surveyors report increases in public works and infrastructure workloads, issues such as planning delays, a lack of wastewater infrastructure and increased cost of materials are continuing to impact the sector.
“But whilst these challenges are expected to continue through the rest 2025, it is hoped that Northern Ireland’s construction industry will be on a path of positive momentum through the course of this year.”