Each EU citizen has an average of 55 square meters of building space, with 75% of the total building stock being residential (single-family homes cover nearly twice the area of apartments). The remaining 25% consists of commercial or public buildings. Notably, 50% of buildings were constructed before 1975, the year when the first energy efficiency measures were introduced, and they are expected to remain in use beyond 2050.
Energy consumption in EU buildings has increased by approximately 18% since 1990, while more than 50 million citizens lack adequate heating in their homes. The construction and related industries account for 35% of total energy consumption and are responsible for 38% of greenhouse gas emissions. It is therefore no surprise that the European Commission and member state governments place significant emphasis on reducing these figures. The EU’s climate strategy—a 50% reduction in emissions by 2030 and net-zero emissions by 2050 compared to 1990 levels—is unlikely to succeed if policies related to buildings fail.
At the same time, the construction industry must integrate circular economy principles, meet higher quality standards (material quality, indoor air quality, climate control, environmental certification systems, etc.), and embrace digital transformation across its products and operations.
According to data from the European Construction Industry Federation (FIEC), investments in buildings across the EU reached approximately €1,015 billion in 2023, with 65% allocated to new construction and 35% to the renovation of existing structures. Growth trends in building activity—commonly referred to as the construction sector—in both the EU and Greece over the past decade are illustrated in the accompanying graphs, using 2015 as the baseline (100 points).
Across the EU, investment growth in building construction dropped from +2.3% in 2022 to -1.3% in 2023. Specifically, growth in renovation projects declined from +2.7% in 2022 to -0.9% in 2023, while investment in new residential buildings shifted from a minimal +0.1% in 2022 to a sharp decline of -6.2% in 2023. The 2022 figures could already be described as weak, as they fell below overall economic growth rates. The 2023 numbers, however, are disappointing—and forecasts for the coming years are even more pessimistic.
In contrast, Greece’s construction sector appears to be recovering, with high growth rates over the past two years, particularly in residential construction. However, the sector has yet to fully recover from the financial crisis of 2008–2020.
Given these trends, EU energy policies for buildings risk derailing, and the ambitious climate targets set by the European Green Deal may remain unfulfilled.
D.B/ FEB 2025
