Reuters reported that the Dutch construction market will shrink in the next 3 years and the private sectors for residential and utility building will be hit hardest.
Dutch research firm TNO said that the construction market is expected to expand by 2.4% in 2008, but decline 2.1% and 4% in 2009 and 2010, respectively, while contracting slightly in 2011.
TNO said that the gross production value of the Dutch construction sector will peak this year at EUR 80.5 billion, excluding value added tax, and fall to EUR 75.3 billion in 2011. It added that residential construction will decline 3.1% in 2009 and rise 3.5% over the 2010-2013 period, while nonresidential construction will fall by 4.1% over the 2010-2013 period.
Dutch construction research institute EIB last month already predicted a 4.5% and 5% production decline for 2009 and 2010.
BAM, the Netherlands" biggest construction company, said last month that Dutch residential sales from its property developments dropped more than 35%. It makes about half of its sales in the Netherlands.