Estonia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

The Construction in Estonia - Country Briefing (H1 2025) report provides detailed market analysis, information, and insights into Estonia’s construction industry, including:

• Estonia’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Estonia’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

The analyst expects the Estonian construction industry to grow by 4.4% in real terms in 2025, owing to an improvement in dwelling permits issued, coupled with investments in the infrastructure, and energy sectors. According to Statistics Estonia, the total number of dwelling permits issued in the country grew by 1.6% year-on-year (YoY), in the first nine months of 2024, preceded by an annual decline 17% in 2023. The government approved its 2025 Budget in September 2024; it includes an expenditure of EUR18.2 billion ($19.4 billion) in 2025 - which is an increase of 2.8% compared to the 2024 Budget. The Budget includes EUR268.4 million ($285.4 million) for the construction of Rail Baltic, EUR165 million ($175.5 million) for the development of the eastern border, EUR160 million ($170.2 million) to support the construction of large-scale investments in the manufacturing sector, EUR74 million ($78.7 million) for the construction of electricity networks and EUR50 million ($53.2 million) for the development of energy-efficient buildings. Also, in November 2024, the Tallinn City Government announced its 2025 Budget totaling EUR1.3 billion ($1.4 billion), 5.7% higher than the 2024 Budget. The Budget prioritizes education, with an allocation of EUR418 million ($444.5 million) followed by an allocation of EUR191.2 million ($203.3 million) for the infrastructure sector and EUR149.5 million ($159 million) for the healthcare sector. In another positive development, in September 2024, the Estonian Centre for Defense Investments (ECDI) announced plans to invest EUR500 million ($531.7 million), over the next four years, to develop the defense infrastructure in the country. These projects will include the construction of barracks, storage buildings, warehouses, roads, ports, and other defense-related infrastructure by 2028.

Over the remainder of the forecast period, the construction industry in Estonia is expected to record an annual average growth rate of 4.8% between 2025 and 2028, supported by investments in renewable energy, green hydrogen, and transport infrastructure projects. In October 2024, Rail Baltic Estonia announced multiple projects to support the construction of the main line of the Rail Baltica project, with a total value of EUR726 million ($772.1 million). These projects include the construction of a railway line structure between Ulemiste to Parnu, including sections between Tootsi and Parnu, at a cost of EUR394 million ($419 million). Another project includes design and construction work on the Parnu to Ikla section valued at EUR332 million ($353.1 million). These projects are anticipated to be awarded by the first half of 2025 and start their construction in 2026 and be completed by 2030. Previously, in August 2024, construction work started on a rail tunnel project - the FinEst Link - between Estonia and Finland. This EUR15 billion ($16 billion) project includes the construction of a twin railway tunnel spanning 100km between Helsinki to Tallinn, by 2035.

Scope

This report provides a comprehensive analysis of the construction industry in Estonia. It provides:

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Estonia, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors