But the CPA warns that growth is expected to slow in the medium-term due to election uncertainty and capacity constraints.
Key forecast highlights include a 10% rise in private housebuilding this year 2015 and a 20.2% increase by 2018. Commercial offices construction is expected to increase 8% in 2015 and 25% by 2018.
“Last year’s recovery in construction was driven primarily by 18% growth in private house building,” said Dr Noble Francis, CPA economics director.
“This year, industry growth will be more broad-based as further a further increase of 10.0% in private house building is expected to be supported by 8.0% growth in commercial offices and 7.9% growth in new infrastructure.
“Growth rates across most of the industry are expected to slow in 2016 and 2017 because of uncertainty regarding the General Election in May, which could give pause to both contract awards and industry investment. Whilst this is unlikely to impact construction activity this year, due to the lag between contracts and activity on the ground, it may have an adverse effect on output in both 2016 and 2017.
“Private house building growth is expected to slow from 10.0% this year to 5.0% in 2016 and 3.0% in 2017.
“Growth in total construction output, therefore, is expected to slow to 4.2% in 2015 and 3.4% in 2016.”
However, construction output is forecast to surpass the pre-recession peak during the next 18 months, this despite the industry having lost 343,000 jobs and considerable materials capacity in the seven years following the financial crisis.
