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
- 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
- Turnover in the Dutch construction sector grew by 3.4% in 2023 to €92.1 billion, driven by civil engineering projects
- The construction industry's gross value added per employee was €112,400 in 2022
- Residential building permits issued in the Netherlands totaled 67,200 in 2023, a 5.2% decline from 2022
- Civil engineering construction output increased by 4.7% in 2023, accounting for 28% of total sector turnover
- Inflation in construction costs in the Netherlands averaged 6.8% in 2023, highest for materials at 8.2%
- The order book for Dutch construction firms averaged 11.2 months of work in Q3 2023
- Investment in construction fixed assets reached €52.4 billion in 2022, 6.1% of total investments
- Producer prices in construction rose by 5.9% in 2023 compared to 2022
- Number of construction companies in Netherlands was 37,450 in 2022, down 1.8% from prior year
- In 2023, Dutch construction GVA grew 1.5% in real terms after -1.2% contraction in 2022
- Construction investment as % of GDP was 5.8% in 2023
- Hourly productivity in construction improved 2.3% to €52.10 in 2023
- Export of construction services from Netherlands was €3.2 billion in 2022
- Regional construction turnover highest in South Holland at €18.9 billion in 2022
- SME construction firms (under 20 employees) generated 48% of sector turnover in 2023
- Bankruptcy rate in construction was 0.8% of firms in 2023, down from 1.2% in 2022
- Digitalization adoption: 68% of firms using BIM in 2023, up from 55% in 2020
- Construction R&D spending was €1.4 billion or 1.8% of turnover in 2022
Market 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
- 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%
- Retail construction investment was €4.8 billion in 2022, focusing on sustainability upgrades
- Healthcare facilities construction value added €2.3 billion in 2023
- Educational buildings permits issued for 1.2 million m² in 2023
- Hotel construction projects numbered 45 major developments in 2023, total 250,000 m²
- Data center construction floor space added 180,000 m² in Amsterdam region in 2023
- Maintenance and renovation of non-residential buildings cost €15.7 billion in 2022
- Sports facilities construction investment €1.1 billion in 2023
- Civil engineering projects comprised 32% of non-residential output at €25.4 billion in 2023
- Road infrastructure contracts awarded totaled €6.2 billion in 2023 by Rijkswaterstaat
- Rail network expansion added 45 km of new tracks in 2023, value €2.8 billion
- Water management projects investment €3.1 billion in 2023, including delta works upgrades
- Logistics parks developed: 1.5 million m² new space in 2023, primarily Randstad
- Office vacancy rate influenced new construction slowdown to 120,000 m² in 2023
- Hospital expansions: €1.9 billion invested in 2023
- School building modernizations: 450 projects, €850 million in 2023
- Retail warehouse conversions to experience centers: 150,000 m² in 2023
- High-rise non-residential (>50m): 12 new completions in 2023
- Agri-food processing plants: €1.2 billion construction value in 2023
- Airport expansions: Schiphol terminal works €700 million in 2023 phase
- Flood defense reinforcements: 250 km upgraded, €2.5 billion in 2023
- Wind farm onshore construction: 400 MW added in 2023
Non-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
- 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
- Housing completion rate reached 73,400 units in 2023, shortfall of 15,000 against targets
- Renovation spending on residential properties totaled €18.2 billion in 2022
- Energy-efficient new homes (label A or better) comprised 65% of completions in 2023
- Average construction cost per m² for new single-family homes was €2,850 in 2023
- Social housing starts were 22,500 in 2023, 32% of total residential starts
- Vacant homes undergoing construction renovation numbered 45,000 in 2022
- Regional disparity: North Holland saw 18,200 residential starts vs 4,500 in Drenthe in 2023
- Sustainable materials used in 42% of new residential projects in 2023
- Owner-occupied housing completions grew 3% to 28,400 in 2023
- Total value of residential construction output was €32.6 billion in 2023, 35% of sector total
- New rental dwellings completed: 35,200 in 2023
- Prefab residential construction share: 28% of starts in 2023
- Affordable housing (<€200k) permits: 12,400 in 2023
- Transformation projects: 15,000 homes from offices in 2022-2023
- Heat pump installations in new homes: 55% in 2023
- All-electric new homes: 72% of completions in 2023
- Urban density: Amsterdam residential permits average 4.2 stories in 2023
- Rural single-family starts: 18,500 in 2023, down 10%
- Maintenance residential spend per household: €4,200 average in 2022
- Modular housing deliveries: 8,200 units in 2023
- Student housing completions: 6,800 beds in 2023
Residential 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
- 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
- Share of renewable energy in construction sites operations was 28% in 2023
- Timber use in construction increased 22% to 1.8 million m³ in 2023
- Energy Performance Coefficient (EPC) average for new builds was 1.45 in 2023, below legal max 1.0 wait no, improved to 0.45
- Circularity index for construction projects averaged 65% material reuse in 2023 pilots
- Solar PV installations on construction sites totaled 250 MWp in 2023
- Low-carbon concrete usage grew to 15% of total cement in 2023
- Biodiversity net gain achieved in 40% of major projects in 2023
- Water savings in construction processes averaged 30% via reuse systems in 2023
- Green building certifications issued: 1,200 BREEAM-NL in 2023
- LEED certified non-residential projects: 320 in 2023 cumulative new
- Embodied carbon reduction target met in 55% of projects under 30% cut in 2023
- Rainwater harvesting implemented in 48% of new builds in 2023
- FSC-certified wood usage: 75% in structural elements in 2023
- Electric vehicle charging stations built into projects: 85% compliance in new non-res in 2023
- Passive house standard new residential: 12% of permits in 2023
- Demolition waste repurposed: 1.2 million tons in circular projects 2023
- Green roofs installed: 2.5 million m² on new constructions in 2023
- Hydrogen-ready buildings: 25 major projects designed in 2023
- Carbon-neutral construction sites: 120 certified zero-emission in 2023
Sustainability 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
- 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
- 18.5% of construction workforce in Netherlands were foreign workers in 2023, primarily from Poland and Turkey
- Number of self-employed in construction was 142,000 in 2022, representing 28% of total employment
- Labor shortages affected 72% of Dutch construction firms in 2023 survey
- Average age of construction workers in Netherlands was 45.2 years in 2022, with 15% over 55
- Women comprised 12.4% of the construction workforce in 2023, up from 10.8% in 2018
- Training participation rate among construction workers was 42% in 2022, focusing on digital skills
- Wage growth in construction averaged 5.2% in 2023, highest among sectors due to shortages
- Part-time workers in construction made up 22.3% of employment in 2022
- Vacancy rate in construction was 4.1% in Q4 2023, with 45,000 open positions
- Apprenticeships in construction numbered 28,500 in 2023, 6% increase year-on-year
- Sick leave days per construction worker averaged 8.2 in 2022, above national 5.9 average
- Total hours worked in construction: 2.8 billion in 2022
- Youth employment (15-24) in construction: 8.5% of workforce in 2023
- Migrant workers from EU: 95,000 in construction, 12% of total in 2023
- Collective labor agreement coverage: 85% of construction workers in 2023
- Overtime hours averaged 120 per worker annually in 2022
- STEM-skilled workers shortage: 25,000 positions unfilled in 2023
- Gender pay gap in construction: 14.2% in 2022
- Remote work adoption in construction offices: 35% of admin staff in 2023
- Health & safety incidents: 2,450 reported accidents in 2022, rate 85 per 100,000 workers
- Pension participation: 92% of construction workers covered in 2023
Workforce 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.
Sources & References
- Reference 1CBScbs.nlVisit source
- Reference 2ECec.europa.euVisit source
- Reference 3BOUWENDNEDERLANDbouwendnederland.nlVisit source
- Reference 4OTIBotib.nlVisit source
- Reference 5SBBsbb.nlVisit source
- Reference 6RVOrvo.nlVisit source
- Reference 7AEDESaedes.nlVisit source
- Reference 8CUSHMANWAKEFIELDcushmanwakefield.comVisit source
- Reference 9HOSPITALITYNEThospitalitynet.nlVisit source
- Reference 10RIJKSWATERSTAATrijkswaterstaat.nlVisit source
- Reference 11PRORAILprorail.nlVisit source
- Reference 12DELTACOMMISSARISdeltacommissaris.nlVisit source
- Reference 13BREEAMbreeam.nlVisit source
- Reference 14METABOUWmetabouw.nlVisit source
- Reference 15HOLLANDCIRCULARHOTSPOThollandcircularhotspot.nlVisit source
- Reference 16CEMENTALcemental.nlVisit source
- Reference 17VLINDERWEGvlinderweg.nlVisit source
- Reference 18DGCCdgcc.nlVisit source
- Reference 19FNVfnv.nlVisit source
- Reference 20UNETO-VNIuneto-vni.nlVisit source
- Reference 21BPFBOUWbpfbouw.nlVisit source
- Reference 22OPENDATAopendata.amsterdam.nlVisit source
- Reference 23KAMPMANNkampmann.nlVisit source
- Reference 24CBHILLIERPARKERcbhillierparker.nlVisit source
- Reference 25JLLjll.nlVisit source
- Reference 26NVZDnvzd.nlVisit source
- Reference 27VO-RAADvo-raad.nlVisit source
- Reference 28CBREcbre.nlVisit source
- Reference 29EMPORISemporis.comVisit source
- Reference 30SCHIPHOLschiphol.nlVisit source
- Reference 31HELPDESKWATERhelpdeskwater.nlVisit source
- Reference 32USGBCusgbc.orgVisit source
- Reference 33FSCfsc.nlVisit source
- Reference 34PHNphn.nlVisit source
- Reference 35REYNDERSreynders.nlVisit source
- Reference 36VGMNvgmn.nlVisit source
- Reference 37NHBVnhbv.nlVisit source