BMI View: Italy's construction sector presents potential investors with both substantial growth potentialand enormous structural challenges. A huge public debt load combined with political instability in the runup to general elections in 2018 will exacerbate uncertainty in the market and further hinder public spendingwhich is already restricted due to ongoing austerity measures. On a more positive note, a large transportproject pipeline and growing investment in the energy sector, backed by regional development bodies, willensure growth and create opportunities for a range of construction companies.
Forecast And Latest Updates
Revised industry figures show Italy's construction sector emerged from an eight year decline in 2016,recording minimal growth of 0.18%. The market is expected to gain some traction in 2017 when we areforecasting overall construction industry value growth of 1.69%.
In the residential sector, the ongoing slump in housing prices means there is very little demand for largescalenew projects, though we do note that Istat figures show a return to growth in terms of bothresidential construction permits and real estate sales which could point to a recovery over late 2017/early2018.