The Netherlands sees construction market overheat
The Dutch economy is picking up pace. Growth in GDP hit a ten-year high of 3.1 percent in 2017 and further solid growth is expected in 2018. Policies reducing household tax are boosting household consumption, with strong exports and business investment also supporting growth. Unemployment is falling, dropping from 7.8 percent in 2014 to 4.5 percent in 2017, and driving consumer demand.
Construction output has risen for four years and seen as overheating, with demand rising for housing, utilit buildings and infrastructure. Utilities and infrastructure are expected to be the key drivers in 2018.
Infrastructure projects include expanding Amsterdam Schiphol airport, a USD417m scheme for Lelystad Airport, the USD411m Ijmuiden water lock at the Port of Amsterdam and the USD1.2bn upgrade of the A10 Zuidasdok Urban road network. Major commercial and residential buildings include the Zalmhaven Toren in Rotterdam, which will be among the tallest residential towers in Europe.
|Market:||Staying the same|
|Cost escalation 2017–18:||4.0%|
|Cost escalation 2018–19:||4.0%|
|Location factor (USD):||80.6|
The housing market should see further strong growth, driven by low interest rates and a scarcity of homes. The commercial sector will benefit from the government selling land and real estate for development. This should boost already increased opportunities flowing from growing confidence in the economy. Meanwhile, the government has increased investment in infrastructure and intends to boost levels of maintenance on roads and water landscaping management.
This content is part of the International construction market survey 2018