Northern Ireland strengthens infrastructure pipeline as construction output peaks

Northern Ireland is entering 2026 with its strongest construction performance in 15 years, according to AECOM’s Ireland Annual Review 2026, positioning national procurement and infrastructure delivery at a critical inflection point. 

AECOM is a global infrastructure consultancy headquartered in the United States, operating across Ireland for more than 165 years.

Construction output rose 7.3 per cent in the year to June 2025, reaching its highest level since 2010 and outperforming the wider UK, which grew by 2.2 per cent. The rebound follows the return of political stability in 2024, which helped unlock stalled programmes and restore confidence across public and private pipelines.

Growth is being driven by repair and maintenance activity, now 55.8 per cent above pre-pandemic levels, alongside a 25.9 per cent increase in housing output. Housing accounted for more than a third of total construction activity in Q2 2025. However, only one new social housing start was recorded over the year, highlighting deep-seated delivery constraints.

Wastewater infrastructure remains the single biggest barrier to unlocking housing development in Belfast, Newry and Derry-Londonderry. With more than 49,000 households on waiting lists, AECOM warns that long-term housing targets will not be met without systemic infrastructure reform.

Cost pressures have eased, with tender price inflation flattening at 3 per cent and material prices stabilising, although labour costs rose by 5.5 per cent due to skills shortages. New work remains 7 per cent above pre-pandemic levels, with private non-housing expected to be one of the fastest-growing segments into 2026.

AECOM argues that 2026 must focus on delivery readiness, supported by clearer funding pipelines, earlier supplier engagement and faster planning processes. Without this, strong investment risks stalling at execution stage.

Explore the full article to understand how readiness will shape Northern Ireland’s infrastructure delivery.

(Photo credits to Francesco Ungaro/Pexels)