Turnover in the construction trade was up by 5.2% in the second quarter of 2026 while the number of newbuild permits was close to record levels, continuing the strong trend of the last 18 months.
Sales have grown by at least 5% in every three-month period but one since the end of 2024, although the market has cooled off from its peak of more than 7% aa year ago.
Newbuild permits issued in May, the latest month for which figures are available, stood at 10,824 for domestic houses and 2,637 commercial properties. The total figure is the highest since December 2024, when more than 13,600 permits were issued, statistics agency CBS said.
The number of buildings in the pipeline grew to nearly 234,000 houses and 48,000 commercial premises.
Permits are being issued faster than buildings are being completed, which has caused the pipeline figure to grow by around 33% for houses and 25% for business premises in the last two and a half years.
The CBS also recorded a steep growth in costs in the construction sector, with a 97% increase for domestic properties in the last year.
The agency said the spike was partly caused by congestion on the electricity network, which had prompted councils to speed up the planning process for newbuild projects before restrictions on new connections kicked in.
The labour market in the sector remains tight, with 28,600 unfilled vacancies recorded by the CBS. In the second quarter of the year 133 construction companies folded, five more than in the winter months.
