Building and construction output fell by almost 40 per cent in the year to the end of June, according to new figures from the Central Statistics Office (CSO).
The data shows that output decreased by 39.3 per cent over the 12-month period, the second biggest decline in the European Union.
In addition, the value of production in the construction sector declined by 40.6 per cent during the second quarter.
The fall in volume was largely due to a 58 per cent decline in the number of new homes built and a 34 per cent drop in non-residential building.
According to the figures, output in civil engineering fell by almost 8 per cent in the year to the end of June.
According to EU statistics, output in the building and construction sector fell by 8.8 per cent. Lithuania recorded the biggest decline in output at 48 per cent, while Lativa's output dropped by 32.4 per cent.
The largest increases uin output were recorded in Greece, Germany and the Czech Republic.