It is the largest non-service related industry employing more than 1.1 million people.
2019 was a difficult year for the industry with lower building activity and decreasing value added (down 5.7%). Residential construction output continued to decline due to more restrictive lending practices and falling property prices. Growth in the non-residential sub sector could not outweigh this decline. Fierce competition has lowered profit margins of residential construction businesses.
The residential construction slump is expected to bottom out in early 2020. In the course of the year performance is expected to rebound, together with renovation activities, due to interest rate cuts, population growth, a rising national dwelling stock deficiency and housing stimulus.