Construction Sector Sees Modest Growth with Housing and Government Boost

Housing construction rises slightly in 2025 and 2026 according to the Construction Companies' new business cycle forecast. Within the commercial property sector, it is government investments in defence and correctional care that drive the upswing.

» Published: April 02 2025

Construction Sector Sees Modest Growth with Housing and Government Boost
Photo: Mickan Mörk/TT

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"It's dawn for the construction sector. Next year, construction investments will grow faster than the economy as a whole, even though we still find ourselves in a challenging business cycle", says Catharina Elmsäter-Svärd, CEO of Byggföretagen, in a press release.

Last year, the construction of approximately 28,000 apartments began. That figure is expected to rise slightly to 31,000 construction starts in 2026.

Local investments, which increased by five percent last year, will continue to rise during the forecast period, driven by the state's investments in defense and correctional care.

Total investments in housing, premises, and facilities will increase from SEK 645.1 billion in 2024 to SEK 686.4 billion in 2026. During the same period, employment in the construction industry will grow by nearly 1,500 people to approximately 370,000 employed.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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