Estonia's construction volume grows for second consecutive quarter
Estonia's construction companies built 3.8% more in the second quarter of 2026 than a year earlier, with local market activity up 4.6%, statistics agency data show.
Data from Estonia's Statistics Department show that in the second quarter of 2026, Estonian construction companies built 3.8% more overall, in Estonia and abroad, than in the same period a year earlier. Construction volume on the local market rose 4.6%.
In the second quarter, Estonian construction firms built a total of 1.06 billion euros' worth of work, including 665 million euros in buildings and 399 million euros in structures. Compared to the same period last year, 4.6% more buildings and 2.5% more structures — such as roads, bridges, ports, main pipelines, communication and power lines, and sports facilities — were built, the agency's press service reported.
Market recovering after prolonged decline
Leading analyst Merike Sinisaar said the construction market is recovering after a long downturn, with construction volume rising for a second consecutive quarter. She noted it was positive that, for the first time in a long while, second-quarter volumes grew locally for both buildings (6.8%) and structures (1%). Sinisaar added that the growth in building construction is mainly driven by an increase in renovation and reconstruction work, since demand for new buildings — particularly residential ones — has been declining for a long time, based on issued building permits.
The volume of work performed abroad by Estonian construction companies fell by almost a tenth compared to the second quarter of 2025, mainly due to a decline in building construction abroad. The share of construction work performed in foreign countries was 6% of the total volume, down from 7% a year earlier.
Fewer new homes, but more private houses
According to the building register, occupancy permits were issued for 998 new residential units, more than a quarter fewer than in the second quarter of 2025. As in the first quarter, the most popular housing types were 3-5 storey apartment buildings and single-family homes. Most new residential units were built in Tallinn and in rural municipalities near Tallinn and Tartu.
Demand for new housing continues to fall, while the share of private houses has grown. Building permits were issued for 1,346 residential units, 14% fewer than in the same quarter a year earlier, with single-family houses the most preferred housing type in the second quarter.
Occupancy permits were issued for 256 non-residential premises with a total usable area of 151,800 square meters, with the largest increase in industrial, retail and transport building space. Compared to the second quarter of 2025, both the area of non-residential premises granted occupancy permits and their construction volume declined.
