Overall Economic Environment Slows Down Residential Housing Construction

The European residential market is currently heavily influenced by the macroeconomic environment, particularly the situation in the financial and labour markets. The sovereign debt crisis and a lack of confidence have cut into the demand for housing production; austerity measures adversely affect the construction sector as well. This important segment of the construction market (45 percent of total construction) is not expected to recover before 2014, when the European economic environment should stabilise again. By then, the housing market should rebound strongly due to catch-up effects. Demographic developments will also positively impact on the demand for housing production in the medium term.