Estonia's construction sector posts first growth in years, up 4% in Q1 2026

Estonia's construction companies increased their output by 4% in the first quarter of 2026 compared to the same period last year. Domestic market growth was even stronger at 5%, according to Statistics Estonia. This marks the first notable recovery in the sector after several years of stagnation.

Estonia's construction sector has recorded its first meaningful growth in several years, with output rising 4% in the first quarter of 2026 compared to the same period in 2025, Statistics Estonia data shows.

The domestic market performed even better, posting a 5% increase over the same timeframe. The figures suggest the sector may be turning a corner after a prolonged period of weak activity driven by high interest rates and subdued investment.

The recovery aligns with broader signs of stabilisation in Estonia's economy, as inflation has eased and financing conditions have gradually improved. Analysts have pointed to public infrastructure investment and a modest revival in private development as key drivers behind the uptick.