Estonian construction industry offers growth via increased building activities and infrastructure investments. Key opportunities arise from government spending on transport projects, renewable energy, and upgraded highways aligning with EU standards by 2030, alongside strategic projects like Rail Baltica.
Dublin, Sept. 02, 2025 (GLOBE NEWSWIRE) — The “Estonia Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)” report has been added to ResearchAndMarkets.com’s offering.
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-Parnu-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 Ulemiste-Parnu and Tootsi-Parnu sections. The second contract, worth EUR332 million ($361.7 million), covers the full cycle of design and construction of the Parnu-Ikla section.
