Real Estate and Construction
The construction sector continues to struggle. Even when construction activity starts growing again, the sector will face a slow recovery. Construction of commercial real estate is likely to be particularly suppressed, given elevated retail and office vacancy rates at present. This implies almost a decade more of weak economic performance and subdued employment in the sector.
Real estate has fared better than construction. However, performance within the sector varies widely. The subdued volume of property transaction activity since the financial crisis has held back expansion in many parts of the real estate sector, while the growing residential rental market has provided new opportunities.