The analyst expects the Estonian construction industry to grow in real terms by 3.5% in 2025, supported by rising building construction activities, coupled with investments in the commercial, and transport infrastructure sectors. According to Statistics Estonia, the average construction volume index grew by 5.1% year-on-year (YoY) in Q1 2025, with that for building construction works growing by 10% YoY, in the same period. The industry’s growth in 2025 will also be supported by investments as part of the 2025 Budget, which includes an expenditure of EUR18.2 billion ($19.8 billion) in 2025, marking an increase of 2.8% compared to the 2024 Budget. The Budget includes EUR268.4 million ($292.4 million) for the construction of Rail Baltic, EUR165 million ($179.8 million) for the development of the eastern border, EUR160 million ($174.3 million) to support the construction of large-scale investments in the manufacturing sector, EUR74 million ($80.6 million) for the construction of electricity networks and EUR50 million ($54.5 million) for the development of energy-efficient buildings.
Over the remainder of the forecast period, the construction industry in Estonia is expected to record an annual average growth rate of 4.7% between 2025 and 2028, supported by investments in the renewable energy, green hydrogen, and transport infrastructure projects. Growth will also be supported by the Estonian government’s announcement, made in April 2025, to upgrade its main highways to meet EU standards by 2030. Under the development plan, the government will construct the Tallinn-Tartu and Tallinn-Pärnu-Ikla highways. Furthermore, in May 2025, Rail Baltic Estonia signed the largest infrastructure contracts with two international consortiums for the construction of key sections of the Rail Baltica high-speed railway. The contract valued EUR932 million ($1 billion), involves construction of passenger line from Tallinn to Ikla by 2030. The first contract, worth EUR394 million ($429.3 million), involves overground and underground works on the Ülemiste-Pärnu and Tootsi-Pärnu sections. The second contract, worth EUR332 million ($361.7 million), covers the full cycle of design and construction of the Pärnu-Ikla section.
Over the remainder of the forecast period, the construction industry in Estonia is expected to record an annual average growth rate of 4.7% between 2025 and 2028, supported by investments in the renewable energy, green hydrogen, and transport infrastructure projects. Growth will also be supported by the Estonian government’s announcement, made in April 2025, to upgrade its main highways to meet EU standards by 2030. Under the development plan, the government will construct the Tallinn-Tartu and Tallinn-Pärnu-Ikla highways. Furthermore, in May 2025, Rail Baltic Estonia signed the largest infrastructure contracts with two international consortiums for the construction of key sections of the Rail Baltica high-speed railway. The contract valued EUR932 million ($1 billion), involves construction of passenger line from Tallinn to Ikla by 2030. The first contract, worth EUR394 million ($429.3 million), involves overground and underground works on the Ülemiste-Pärnu and Tootsi-Pärnu sections. The second contract, worth EUR332 million ($361.7 million), covers the full cycle of design and construction of the Pärnu-Ikla section.
The Construction in Estonia - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into the Estonian construction industry, including:
- The Estonian 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 the Estonian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Estonia. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Estonia, 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-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
List of Tables
List of Figures
