New Zealand’s construction industry is anticipated to contract by 3.3% in real terms in 2025, owing to rising debt, a fall in building permits, labor shortage, and in building permits, labor shortages, and increasing construction material costs-particularly for cement. According to the Financial Statements of the Government of New Zealand released in June 2025, the country’s net core Crown debt (public debt) stood at NZD182.8 billion ($110 billion) as of June 2025, marking a year-on-year (YoY) increase of 3.8% compared to the same period in 2024.
Over the remainder of the forecast period, however, the construction industry is expected to rebound at an average annual growth rate of 4.4% from 2026 to 2029, supported by investments in transport, health, and education infrastructure projects. Growth will also be driven by the government’s commitment to meet 100% of electricity demand from renewable sources by 2030 and achieve net-zero emissions by 2050. In August 2025, the New Zealand Transport Agency approved over NZD600 million ($362.1 million) for the development of a four-lane section of the Hawke’s Bay Expressway between Links Road/Pākōwhai Road and Taradale Road roundabouts, including a new grade-separated interchange. Construction is scheduled to begin in November 2025 and be completed by early 2028, with the interchange expected to finish by late 2029.
Over the remainder of the forecast period, however, the construction industry is expected to rebound at an average annual growth rate of 4.4% from 2026 to 2029, supported by investments in transport, health, and education infrastructure projects. Growth will also be driven by the government’s commitment to meet 100% of electricity demand from renewable sources by 2030 and achieve net-zero emissions by 2050. In August 2025, the New Zealand Transport Agency approved over NZD600 million ($362.1 million) for the development of a four-lane section of the Hawke’s Bay Expressway between Links Road/Pākōwhai Road and Taradale Road roundabouts, including a new grade-separated interchange. Construction is scheduled to begin in November 2025 and be completed by early 2028, with the interchange expected to finish by late 2029.
The Construction in New Zealand - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into New Zealand’s construction industry, including:
- New Zealand’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in New Zealand’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in New Zealand. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in New Zealand, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
