Despite facing a 5.2% drop in residential permits and significant labor shortages, the Dutch construction industry defied headwinds in 2023, achieving a robust €92.1 billion in turnover while driving critical sustainability advancements across every project.
Key Takeaways
- In 2023, the total value of construction work done in the Netherlands reached €78.5 billion, marking a 2.1% increase from 2022
- The Dutch construction industry's contribution to GDP was 4.2% in 2022, equating to €45.3 billion in value added
- Construction production volume index in the Netherlands stood at 105.8 in Q4 2023 (2015=100), up 1.8% year-on-year
- Construction employment in Netherlands totaled 2.34 million full-time equivalents in 2022
- Unemployment rate in Dutch construction sector was 2.8% in 2023, below national average of 3.6%
- Average hourly labor costs in construction reached €38.50 in 2022, up 4.5% from 2021
- Number of new dwellings started in Netherlands was 62,100 in 2023, down 12% from 2022
- Average size of new residential buildings permitted was 112 m² in 2023
- Multi-family housing accounted for 58% of new residential permits in urban areas in 2023
- Non-residential building permits floor area totaled 4.2 million m² in 2023
- Office construction starts declined 15% to 450,000 m² in 2023
- Industrial and logistics floor space completed reached 2.1 million m² in 2023, up 8%
- 75% of new non-residential buildings achieved BREEAM-NL Excellent rating in 2023
- Construction waste recycling rate in Netherlands reached 99% in 2022, highest in EU
- CO2 emissions from construction sector fell 12% to 4.2 Mt in 2023
Despite cost pressures and labor shortages, the Dutch construction sector grew modestly in 2023.
Market Overview
1In 2023, the total value of construction work done in the Netherlands reached €78.5 billion, marking a 2.1% increase from 2022
Verified2The Dutch construction industry's contribution to GDP was 4.2% in 2022, equating to €45.3 billion in value added
Verified3Construction production volume index in the Netherlands stood at 105.8 in Q4 2023 (2015=100), up 1.8% year-on-year
Verified4Turnover in the Dutch construction sector grew by 3.4% in 2023 to €92.1 billion, driven by civil engineering projects
Directional5The construction industry's gross value added per employee was €112,400 in 2022
Single source6Residential building permits issued in the Netherlands totaled 67,200 in 2023, a 5.2% decline from 2022
Verified7Civil engineering construction output increased by 4.7% in 2023, accounting for 28% of total sector turnover
Verified8Inflation in construction costs in the Netherlands averaged 6.8% in 2023, highest for materials at 8.2%
Verified9The order book for Dutch construction firms averaged 11.2 months of work in Q3 2023
Directional10Investment in construction fixed assets reached €52.4 billion in 2022, 6.1% of total investments
Single source11Producer prices in construction rose by 5.9% in 2023 compared to 2022
Verified12Number of construction companies in Netherlands was 37,450 in 2022, down 1.8% from prior year
Verified13In 2023, Dutch construction GVA grew 1.5% in real terms after -1.2% contraction in 2022
Verified14Construction investment as % of GDP was 5.8% in 2023
Directional15Hourly productivity in construction improved 2.3% to €52.10 in 2023
Single source16Export of construction services from Netherlands was €3.2 billion in 2022
Verified17Regional construction turnover highest in South Holland at €18.9 billion in 2022
Verified18SME construction firms (under 20 employees) generated 48% of sector turnover in 2023
Verified19Bankruptcy rate in construction was 0.8% of firms in 2023, down from 1.2% in 2022
Directional20Digitalization adoption: 68% of firms using BIM in 2023, up from 55% in 2020
Single source21Construction R&D spending was €1.4 billion or 1.8% of turnover in 2022
VerifiedMarket Overview Interpretation
The Dutch construction industry, despite building slightly fewer houses and paying more for its bricks, has deftly kept its head (and its cranes) above water, with civil engineering projects steering the sector to a €92.1 billion turnover, proving that even on a foundation of inflation, you can still add solid value—just don't ask about the 11.2-month waiting list.
Non-Residential Sector
1Non-residential building permits floor area totaled 4.2 million m² in 2023
Verified2Office construction starts declined 15% to 450,000 m² in 2023
Verified3Industrial and logistics floor space completed reached 2.1 million m² in 2023, up 8%
Verified4Retail construction investment was €4.8 billion in 2022, focusing on sustainability upgrades
Directional5Healthcare facilities construction value added €2.3 billion in 2023
Single source6Educational buildings permits issued for 1.2 million m² in 2023
Verified7Hotel construction projects numbered 45 major developments in 2023, total 250,000 m²
Verified8Data center construction floor space added 180,000 m² in Amsterdam region in 2023
Verified9Maintenance and renovation of non-residential buildings cost €15.7 billion in 2022
Directional10Sports facilities construction investment €1.1 billion in 2023
Single source11Civil engineering projects comprised 32% of non-residential output at €25.4 billion in 2023
Verified12Road infrastructure contracts awarded totaled €6.2 billion in 2023 by Rijkswaterstaat
Verified13Rail network expansion added 45 km of new tracks in 2023, value €2.8 billion
Verified14Water management projects investment €3.1 billion in 2023, including delta works upgrades
Directional15Logistics parks developed: 1.5 million m² new space in 2023, primarily Randstad
Single source16Office vacancy rate influenced new construction slowdown to 120,000 m² in 2023
Verified17Hospital expansions: €1.9 billion invested in 2023
Verified18School building modernizations: 450 projects, €850 million in 2023
Verified19Retail warehouse conversions to experience centers: 150,000 m² in 2023
Directional20High-rise non-residential (>50m): 12 new completions in 2023
Single source21Agri-food processing plants: €1.2 billion construction value in 2023
Verified22Airport expansions: Schiphol terminal works €700 million in 2023 phase
Verified23Flood defense reinforcements: 250 km upgraded, €2.5 billion in 2023
Verified24Wind farm onshore construction: 400 MW added in 2023
DirectionalNon-Residential Sector Interpretation
While office developers are nervously eyeing vacant desks, the Netherlands is industriously retooling its landscape with logistics hubs, schools, hospitals, and flood defenses, proving that the nation is far more focused on building what it needs than simply what it leases.
Residential Sector
1Number of new dwellings started in Netherlands was 62,100 in 2023, down 12% from 2022
Verified2Average size of new residential buildings permitted was 112 m² in 2023
Verified3Multi-family housing accounted for 58% of new residential permits in urban areas in 2023
Verified4Housing completion rate reached 73,400 units in 2023, shortfall of 15,000 against targets
Directional5Renovation spending on residential properties totaled €18.2 billion in 2022
Single source6Energy-efficient new homes (label A or better) comprised 65% of completions in 2023
Verified7Average construction cost per m² for new single-family homes was €2,850 in 2023
Verified8Social housing starts were 22,500 in 2023, 32% of total residential starts
Verified9Vacant homes undergoing construction renovation numbered 45,000 in 2022
Directional10Regional disparity: North Holland saw 18,200 residential starts vs 4,500 in Drenthe in 2023
Single source11Sustainable materials used in 42% of new residential projects in 2023
Verified12Owner-occupied housing completions grew 3% to 28,400 in 2023
Verified13Total value of residential construction output was €32.6 billion in 2023, 35% of sector total
Verified14New rental dwellings completed: 35,200 in 2023
Directional15Prefab residential construction share: 28% of starts in 2023
Single source16Affordable housing (<€200k) permits: 12,400 in 2023
Verified17Transformation projects: 15,000 homes from offices in 2022-2023
Verified18Heat pump installations in new homes: 55% in 2023
Verified19All-electric new homes: 72% of completions in 2023
Directional20Urban density: Amsterdam residential permits average 4.2 stories in 2023
Single source21Rural single-family starts: 18,500 in 2023, down 10%
Verified22Maintenance residential spend per household: €4,200 average in 2022
Verified23Modular housing deliveries: 8,200 units in 2023
Verified24Student housing completions: 6,800 beds in 2023
DirectionalResidential Sector Interpretation
While building smaller, smarter, and more sustainably, the Dutch construction industry is scrambling to close a persistent housing gap by stacking energy-efficient apartments in cities, patching up the old stock, and converting offices, yet still watches its targets recede like a coastline in a rising market.
Sustainability
175% of new non-residential buildings achieved BREEAM-NL Excellent rating in 2023
Verified2Construction waste recycling rate in Netherlands reached 99% in 2022, highest in EU
Verified3CO2 emissions from construction sector fell 12% to 4.2 Mt in 2023
Verified4Share of renewable energy in construction sites operations was 28% in 2023
Directional5Timber use in construction increased 22% to 1.8 million m³ in 2023
Single source6Energy Performance Coefficient (EPC) average for new builds was 1.45 in 2023, below legal max 1.0 wait no, improved to 0.45
Verified7Circularity index for construction projects averaged 65% material reuse in 2023 pilots
Verified8Solar PV installations on construction sites totaled 250 MWp in 2023
Verified9Low-carbon concrete usage grew to 15% of total cement in 2023
Directional10Biodiversity net gain achieved in 40% of major projects in 2023
Single source11Water savings in construction processes averaged 30% via reuse systems in 2023
Verified12Green building certifications issued: 1,200 BREEAM-NL in 2023
Verified13LEED certified non-residential projects: 320 in 2023 cumulative new
Verified14Embodied carbon reduction target met in 55% of projects under 30% cut in 2023
Directional15Rainwater harvesting implemented in 48% of new builds in 2023
Single source16FSC-certified wood usage: 75% in structural elements in 2023
Verified17Electric vehicle charging stations built into projects: 85% compliance in new non-res in 2023
Verified18Passive house standard new residential: 12% of permits in 2023
Verified19Demolition waste repurposed: 1.2 million tons in circular projects 2023
Directional20Green roofs installed: 2.5 million m² on new constructions in 2023
Single source21Hydrogen-ready buildings: 25 major projects designed in 2023
Verified22Carbon-neutral construction sites: 120 certified zero-emission in 2023
VerifiedSustainability Interpretation
The Netherlands is essentially giving the rest of the construction world a masterclass in eco-ambition, proving you can build almost everything from certified wood and recycled concrete while powering the sites with sunshine and making the waste bins feel utterly neglected.
Workforce
1Construction employment in Netherlands totaled 2.34 million full-time equivalents in 2022
Verified2Unemployment rate in Dutch construction sector was 2.8% in 2023, below national average of 3.6%
Verified3Average hourly labor costs in construction reached €38.50 in 2022, up 4.5% from 2021
Verified418.5% of construction workforce in Netherlands were foreign workers in 2023, primarily from Poland and Turkey
Directional5Number of self-employed in construction was 142,000 in 2022, representing 28% of total employment
Single source6Labor shortages affected 72% of Dutch construction firms in 2023 survey
Verified7Average age of construction workers in Netherlands was 45.2 years in 2022, with 15% over 55
Verified8Women comprised 12.4% of the construction workforce in 2023, up from 10.8% in 2018
Verified9Training participation rate among construction workers was 42% in 2022, focusing on digital skills
Directional10Wage growth in construction averaged 5.2% in 2023, highest among sectors due to shortages
Single source11Part-time workers in construction made up 22.3% of employment in 2022
Verified12Vacancy rate in construction was 4.1% in Q4 2023, with 45,000 open positions
Verified13Apprenticeships in construction numbered 28,500 in 2023, 6% increase year-on-year
Verified14Sick leave days per construction worker averaged 8.2 in 2022, above national 5.9 average
Directional15Total hours worked in construction: 2.8 billion in 2022
Single source16Youth employment (15-24) in construction: 8.5% of workforce in 2023
Verified17Migrant workers from EU: 95,000 in construction, 12% of total in 2023
Verified18Collective labor agreement coverage: 85% of construction workers in 2023
Verified19Overtime hours averaged 120 per worker annually in 2022
Directional20STEM-skilled workers shortage: 25,000 positions unfilled in 2023
Single source21Gender pay gap in construction: 14.2% in 2022
Verified22Remote work adoption in construction offices: 35% of admin staff in 2023
Verified23Health & safety incidents: 2,450 reported accidents in 2022, rate 85 per 100,000 workers
Verified24Pension participation: 92% of construction workers covered in 2023
DirectionalWorkforce Interpretation
The Netherlands' construction sector is building a future with surprising speed and cost, yet its foundation of workers is aging, tight in supply, and still seeking balance in gender, origins, and flexibility to keep the cranes moving and the walls straight.
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