In 2025, Estonian construction companies reported a decline in activity volume by 1.5 percent from the previous year, according to the statistics office. The overall construction volume decreased for the fourth straight year, with a total of four billion euros being generated from construction, comprising 2.5 billion euros for buildings and 1.5 billion euros for infrastructure. Compared to 2024, there was a 1 percent decrease in the construction of buildings and a 2 percent drop in infrastructure projects including roads, bridges, ports, and utility lines.

Merike Sinisaar, the lead analyst at the statistics office, noted that the beginning of 2025 started positively; however, a typical decline in construction activity resumed from the second quarter onward, continuing the downward trend observed in recent years. This consistent reduction in construction output demonstrates the ongoing challenges faced by the construction sector in Estonia.

Despite the overall decline, there was growth in the local construction market, where the construction volume decreased by 1.4 percent overall. The volume of building construction increased by 1.9 percent, largely driven by the development of new buildings, while infrastructure projects saw a decline. This mixed performance highlights the complexities of the construction industry in Estonia, suggesting that while some areas are growing, the sector as a whole is still struggling with broader economic trends.