Construction Insights

[constructioninsights]

Europe Construction Industry Databook Series – Market Size & Forecast by 2025 by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction

The European construction sector was severely impacted in 2020 due to COVID-19 crisis. The sector is expected to rebound in 2021 with construction output likely to recover by 4-5%. Construction production in the EU-27 improved by 1.2 % in November 2020, as compared to October 2020 and declined YoY by 1.1 %. In the euro-area, there was an increase of 1.4 % as compared with October 2020 and a decline of 1.3 % YoY as compared to November 2019. In 2020, in France and Spain housing permits declined, which could impact housing completion in the coming years. Also, spending on commercial buildings is likely to decline in 2021, given the poor financial performance of several firms and impact of COVID-19. In 2021, countries with stringent lockdowns are expected to witness strong rebounds. In the EU-27, construction of buildings improved marginally by 0.7% in November 2020 over October 2020, civil engineering improved by 3.0%. While in the euro area, construction of building and civil engineering improved by 1.0% and 3.1%, respectively. In countries such as Finland where lockdown was less drastic, the construction activity was only moderately impacted during February-April 2020. More than 50% of the countries regained construction activity to pre-crisis levels excluding Slovakia, Poland, Bulgaria, Spain and Czech. While the Netherlands and Germany regained or slightly surpassed the February level. The outlook for residential construction remains positive in 2021. The growing demand for housing among the citizens in the UK is boosted due to the cut in stamp duty on the sale of new homes due to which new orders have increased at a much faster rate. Also, demand for the residential construction sector is still strong in the German market. The coronavirus crisis had a positive impact on the real estate market in Germany as the mortgage interest rates were at an all-time low. As a result, the demand for residential property is stronger than ever before. Despite the crisis, banks in Germany have seen sales growth by up to 30% as compared to 2019. Commercial construction activities were severely impacted due to COVID-19 restrictions. In Germany for instance, biggest losses are expected in the commercial construction sector, with as much as a 6% drop in real terms in 2020. Also, some companies made zero sales in 2020, the effect of which is likely to continue into 2021. There can be a further decline of 2-4% in the next year. Infrastructure construction was least affected by the global pandemic and is expected to have a positive outlook in 2021. The Italian Government is planning to spend a major chunk of the EU recovery fund on transport infrastructure. Over €1 billion is allocated for the construction of the Turin - Lyon high-speed railway line, whereas €4.5 billion is allocated for Palermo - Messina - Catania railway construction. Additionally, the government also plans to spend about €2.6 billion on a direct high-speed link between Naples and Bari in Southern Italy. This report from ConsTrack360 provides data and trend analyses on European construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors. It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks. This offering from ConsTrack360 is a bundled offering, combining 13 country reports: Austria, Belgium, Finland, France, Germany, Greece, Italy, Netherlands, Poland, Russia, Spain, Switzerland, United Kingdom.

Scope

Each country report covers the following: • Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025. KPIs covered include the following: • Market size by value • Market size by volume of construction • Number of units • Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by • Housing type (multi family, single family) • Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation) • Price point / income level (luxury, mid-tier, affordable) • Construction stage (new construction, re-development & maintenance) • Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by • Green building by Housing type (multi family, single family) • Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation) • Green building by Price point / income level (luxury, mid-tier, affordable) • Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by • Office (further broken down by Grade A, Grade B, and Grade C) • Retail (further broken down by Grade A, Grade B, and Grade C) • Hospitality (further broken down by Grade A, Grade B, and Grade C) • Restaurant (further broken down by Grade A, Grade B, and Grade C) • Entertainment • Sports facility • Construction stage (new construction, re-development & maintenance) • Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by • Office green building construction • Retail green building construction • Hospitality green building construction • Restaurant green building construction • Entertainment green building construction • Sports facility green building construction • Other commercial green building construction • Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) • Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by • Healthcare construction • Educational construction • Public sector • construction stage (new construction, re-development & maintenance) • Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by • Healthcare green building construction • Educational green building construction • Infrastructure Construction Sectors: 10- year market size & forecast in value terms by • Marine and inland water infrastructure • Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure) • Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction) • Construction stage (new construction, re-development & maintenance) • Green Infrastructure Construction: 10- year market size & forecast in value terms

Get more and detailed insights @ https://bit.ly/3f6HZgz

[constructioninsights]

Saint Gobain expands its business with green, smart homes in India

In November 2021, the French construction company Saint-Gobain launched its green home solutions, My Home range, in India. The company opined investing approximately Rs 2,500 crore (~US$335 million) in India between FY2022 and FY2023 in the brownfield and greenfield expansions, mainly in green solutions and digital platforms.

The Indian subsidiary of Saint-Gobain has already opened MyHome stores in Kochi, Mumbai, and Chennai. The stores offer new-age home products such as windows, shower cubicles, mirrors, ceilings, shutters, kitchen furnishings, roofing products, etc. The company even targets to open over 50 MyHome stores by the end of the year in Tier I, Tier-II, and Tier-III cities. Moreover, the company has the target of earning Rs 1,000 crore (~US$130 million) revenue from the home solution business in India.

Eyeing the lucrative opportunity, in November 2021, Saint-Gobain acquired a minority stake in Livspace, one of the leading end-to-end home interior, design, and installation providers in India. Notably, this investment will add up to the company's full product portfolio in the Indian residential market, which accounts for around 80% of the Indian construction market.

Despite the pandemic-led slowdown, residential construction recorded steady growth in India. The pandemic has not largely impacted the house buying budget of the customers. Moreover, with the buyers' changing taste and preference patterns, customers are willing to invest a substantial amount in furnishing and designing interiors. Therefore, considering the vibrant market, Saint-Gobain expanded the business to increase its customer base and the home interiors acquisition to capture a significant market share.

In India, there has a rising demand for green buildings which are digitally-driven, energy-efficient, and aesthetically rich. Consequently, the rise in demand for green buildings propelled the demand for resource-efficient light construction materials such as special glasses that control the sunlight in the room. With the introduction of these products, the company will offer smart and green offices and homes, a minimalistic and aesthetic look coupled with deigned partitions and sleek furniture. The company, which was growing at a CAGR of 17% in the last two decades and grew by 30 times in India, expects the expansion plan to provide a further boost to the company's growth in the coming quarters.

According to ConsTrack360, India is moving towards urbanization, and the home segment market will witness significant growth in the next six to eight quarters. Moreover, strong growth of the home segment of the Indian construction industry is expected to attract global companies to invest in this market.

To know more and gain deeper understanding of Construction in India, click here.

[constructioninsights]

Growth in residential construction is to support the overall construction market in Dubai

As the economy is recovering from the global pandemic, property prices in Dubai have started rising in the last two quarters in 2021. With the country loosening the Covid restrictions, Dubai saw a surge in demand for housing. The real estate market fell, and the prevailing interest rate was low compared to standard times, which helped buyers to grab the opportunity. Consequently, the demand for residential apartments increased significantly, which boosted the growth of the overall construction industry.  

Moreover, the construction market has witnessed a rise in the sale of properties in Expo 2020 Dubai. Buyers have bought thousands of apartments in Dubai from the start of the Expo 2020. Over 12 thousand properties worth more than AED 30 billion have been sold from October to November. This includes more than seven thousand secondary or ready residential units.  

Apart from the Expo, government initiatives through new visa programs, better regulations for inviting foreign investments, loosening the COVID-19 restrictions, and the successful vaccinations are the parameters that indirectly helped the growth of the construction industry in Dubai.

On the other hand, the rental market in Dubai has witnessed 3% and 6% rise in rents for apartments and villas, respectively. This can be attributed to the pandemic induced remote working and increased demand for spacious apartments.  

Though apartment prices dropped during the pandemic, in some popular areas of the emirate, the rent rose by 20%. Since housing rent has been increasing, new constructions may start to gain from the opportunity. From all these factors, it can be estimated that demand for new residential constructions will witness substantial growth in the next four to six quarters.

To know more and gain deeper understanding of construction in UAE, click here.

[constructioninsights]

Product innovation is driving the growth of the green construction market

The rising awareness of environmental sustainability gave growth to the green construction market. Green building is nothing else but a technology to develop an eco-friendly infrastructure. The main purpose of the rising demand for green construction materials is that these materials have lesser negative effects on the environment and human health as opposed to commercial and residential constructions. Apart from this, these buildings use fewer natural resources, less energy, and less water.  

There are various other factors that are providing a boost to the market, such as government policies that help the construction of green buildings, the high resale value of such buildings, and high consumer awareness regarding the benefits of living in such buildings. Due to the high demand for such materials, the key players in the market are constantly innovating with their product line.

CertainTeed, a North American manufacturer and a subsidiary of Saint-Gobain is one of the major players in the green building materials market. The most important type of green building materials is structural, exterior, interior, etc. The company has introduced its felt ceilings offerings with the introduction of new product lines in 2020 with the increasing demand for felt in the interior designing space.  

The new Felt Baffles and Open Cell systems are ideal for lobbies, offices, classrooms, arenas, and commercial applications, which can turn any ceiling into a warm, and visually stunning architectural feature. The felt structures provide high acoustical performance up to NRC 1.10. Moreover, the new product is made from 60% recycled PET content that comes from plastic soft drink bottles, so the felt system is completely recyclable.  

Moreover, CertainTeed LLC, installed water recycling technology worth $4.3 million at its Kansas City insulation plant, which will help to reduce the plant’s usage of water by 227 million gallons per year. The technology will help the company to hold and reuse maximum water that is used on its different product lines. The water that used to travel into the sewer drains, the company reused that water with the help of a technology.

Another innovation in the green materials market is made by the Netherlands-based company Leadex, which uses recycled polyvinyl butyral for waterproofing and sealing products. Every year in Europe, 1.5 billion kilos of PVB waste are generated. The company has set a target of putting waste to better use on all the world’s roofs. With this innovation the company is also partnering with various other construction companies to bring environment friendly products to the market.

To know about Global Construction Industry Please click here  @ https://bit.ly/3pXPXyQ

[constructioninsights]

Rising construction activities in Q4 2021 expected to support China’s overall construction industry

Since October 2021, a number of infrastructure projects have been initiated in China. The announcement of major infrastructure projects comes from quickened fiscal stimulus and accelerated issuance of special bonds in the country. The construction boom in China is expected to offer support for fixed asset investment, which has been flat over the last few quarters. This growth in fixed-asset investment will offer a buffer against the rising economic challenges in Q4, resulting in stable GDP growth for the year.  

Major infrastructure projects likely to support the market growth  

In November 2021, Guangxi Zhuang Autonomous Region in South China launched a batch of construction projects, which involves a total investment of US$29.15 billion. These major infrastructure projects cover a wide range of sectors, such as new energy, transportation, basic infrastructure, and logistics. Moreover, Xi'an, capital of Shaanxi Province in Northwest China, inaugurated 100 power grid projects in November 2021. Notably, the power grid projects involve a total investment of around US$10 billion.  

On November 5, 2021, Hubei Province in Central China initiated 805 projects involving a total investment of US$70.8 billion. Moreover, investment in Q4 is also expected to grow as the country has been ramping up fiscal policy by issuing more special bonds to uplift the Chinese economy, facing increasing internal and external pressure over the last few quarters.  

Notably, the fixed-asset installment came to a halt during Q3 2021. During the first three quarters, the fixed-asset investment in the country increased 7.3%, which represents a slowdown of 1.6% compared to the first eight months, according to the data released by the National Bureau of Statistics (NBS).

With the economic growth in the country slowing down in the second half of 2021, investment and uptick in the construction activities during Q4 2021 will help to smooth the average economic growth rate in China for the full year. Notably, the projects that are expected to be finalized by December 2021 will allow construction firms to buy equipment and facilities at the start of 2022. This will be another strategic deployment that is expected to help China transit to 2022 in a better position compared to 2021.

In October 2021, the Ministry of Finance in China said that the issuance of local governments’ special-purpose bonds was ramped up since August 2021. It is projected that the issuance of these special-purpose bonds will be completed by November 2021. Notably, the net bond issuance reached 2.22 trillion yuan in the first three quarters of 2021. According to the Ministry of Finance, this accounts for 61% of the annual quota.  

While the slowdown in factory production has had a negative impact on the economy in October, an increase in consumption because of the recently concluded Double 11 shopping festival and the growing demand for upcoming New Year and Spring Festival holidays are expected to support the economic revival. Notably, China's annual economic growth rate is well ahead of when compared to the rest of the world. ConsTrack360 expects that the Chinese economy and trade will continue to boost the global recovery.

To know more and gain deeper understanding of construction industry in China, click here.

[constructioninsights]

Construction Industry in Chile | In-Depth Understanding Of Construction Market Dynamics| Understand Market Opportunity, Industry Dynamics, Key Trends And Drivers Across 40+ Market Segments And Sub-Segments Of Building And Infrastructure

Construction industry in Chile has done well to withstand the impact of economic slowdown along with negative business and consumer sentiment due to disruption caused by Covid-19 outbreak.

Though growth in certain sectors will continue to remain subdued in near term, overall outlook for the industry is positive. According to ConsTrack360's Q4 2020 Global Construction Survey, construction industry in Chile is expected to grow by 9.1% to reach US$ 28378.7 million in 2021.

Despite near-term challenges in certain construction sectors, medium to long term growth story in Chile remains intact. The construction industry in Chile is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 6.1% during 2021-2025. The construction output in the country is expected to reach US$ 35992.9 million by 2025.

This report from ConsTrack360 provides data and trend analyses on construction industry in Chile, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Chile. KPIs covered include the following:

• Market size by value

• Market size by volume of construction

• Number of units

 Chile Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)

• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Price point / income level (luxury, mid-tier, affordable)

• Construction stage (new construction, re-development & maintenance)

 Chile Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)

• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Green building by Price point / income level (luxury, mid-tier, affordable)

 Chile Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)

• Retail (further broken down by Grade A, Grade B, and Grade C)

• Hospitality (further broken down by Grade A, Grade B, and Grade C)

• Restaurant (further broken down by Grade A, Grade B, and Grade C)

• Entertainment

• Sports facility

• Construction stage (new construction, re-development & maintenance)

 Chile Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction

• Retail green building construction

• Hospitality green building construction

• Restaurant green building construction

• Entertainment green building construction

• Sports facility green building construction

• Other commercial green building construction

 Chile Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

Chile Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction

• Educational construction

• Public sector

• construction stage (new construction, re-development & maintenance)

 Chile Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction

• Educational green building construction

 Chile Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure

• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)

• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)

• Construction stage (new construction, re-development & maintenance)

• Chile Green Infrastructure Construction: 10- year market size & forecast in value terms

 To get detailed insights and FREE sample report please click here @ constrack360.com/reportstore/view/Chile-Construction-Industry-Databook-Series-3732

 Reasons to Purchase

• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Chile.

 • Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

 • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

 • City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

[constructioninsights]

Australia Construction Market is to Grow at a CAGR of 3.8% during 2021-2025| Detailed Industry Analysis | Emerging Trends | Green Building Construction | City Level Insights

Australia is one of the very few countries which have done well in containing the spread of coronavirus outbreak. However, growth has been impacted due to extended lockdown, leading to weak economic activity in core construction sectors.

In comparison to the rest of the industry, residential construction has been more impacted due to coronavirus outbreak. According to ConsTrack360’s Global Construction Survey Q2 2021, housing sales declined by over 27% in 2020. Overall growth in residential construction is expected to remain subdued in 2021.

To boost the demand and growth of residential construction, the treasury announced the Homebuilder program on June 4, 2020. Under the program, the government will be providing eligible owner-occupiers a grant of AUD 25,000. Even first home buyers are eligible for the grant, which is provided to support the growth of residential construction in Australia.

Boosting the growth of residential construction will also positively impact workers and other related industries in Australia such as designers, architects, and furniture retailers. Moreover, with low-interest rates for loans, it is expected that many Australians will opt for renovations.

Commercial and retail construction sector is estimated to have declined by over 31% in 2020. The value of the commercial activity is expected to decline in 2021, before stabilizing in 2022-23. Increasing government spending will is required to lift the commercial construction activity, especially when private investment is extremely low in Australia.

Construction activity in office, hospitality, and education sectors are all expected to contract significantly. While health and retail have favorable projections, it will not be enough to overcome the slowdown in the commercial sector.

According to the budget, the government is investing heavily in the infrastructure construction sector in Australia. Overall, US$14 billion will be invested in hard infrastructure projects. This includes US$7.5 billion of spending on road and rail projects, US$2 billion for road safety upgrades, and US$1 billion for upgrading local roads and footpaths. Moreover, the government is also offering funding for accelerating the implementation of the 5G network in the country.

The coronavirus outbreak has had a significant impact on the Australian economy and the construction industry. The construction industry in Australia is expected to contract up to 12% in 2020. The outlook for the sector remains positive in 2021. The construction sector is expected to grow steadily in 2021.

According to ConsTrack360's Q2 2021 Global Construction Survey, construction industry in Australia is expected to grow by 6.4% to reach US$169.8 billion in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Australia remains intact. The construction industry in Australia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 3.8% during 2021-2025. The construction output in the country is expected to reach US$196.9 billion by 2025.

 This report from ConsTrack360 provides data and trend analyses on construction industry in Australia, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

Scope

• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Australia. KPIs covered include the following:

• Market size by value

• Market size by volume of construction

• Number of units

Australia Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)

• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Price point / income level (luxury, mid-tier, affordable)

• Construction stage (new construction, re-development & maintenance)

 Australia Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)

• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Green building by Price point / income level (luxury, mid-tier, affordable)

Australia Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)

• Retail (further broken down by Grade A, Grade B, and Grade C)

• Hospitality (further broken down by Grade A, Grade B, and Grade C)

• Restaurant (further broken down by Grade A, Grade B, and Grade C)

• Entertainment

• Sports facility

• Construction stage (new construction, re-development & maintenance)

 Australia Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction

• Retail green building construction

• Hospitality green building construction

• Restaurant green building construction

• Entertainment green building construction

• Sports facility green building construction

• Other commercial green building construction

Australia Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

Australia Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction

• Educational construction

• Public sector

• construction stage (new construction, re-development & maintenance)

Australia Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction

• Educational green building construction

 • Australia Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure

• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)

• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)

• Construction stage (new construction, re-development & maintenance)

• Australia Green Infrastructure Construction: 10- year market size & forecast in value terms

Get deep insights and FREE sample report @ https://www.constrack360.com/reportstore/view/Australia-Construction-Industry-Databook-Series-4015

Reasons to Purchase

• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Australia.

• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

• City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

[constructioninsights]

Germany infrastructure construction outlook 2021

The German economy declined by 5.3% in 2020. The decline was much lower as compared to other European countries, backed by strong fiscal response to recover from the impact of COVID-19 pandemic.  While operations of several sectors in Germany were impacted due to COVID imposed lockdown, the infrastructure, residential, and utility construction were exempted from lockdown measures. Despite this, the construction activities in Germany declined by over 9.5% in 2020.

In January 2020, the German government announced to spend US$125 billion (€ 86 billion) to improve its railway network in the next decade. Of these, around €62 billion will be spent by the government and the remaining EUR24 billion will be spent by Deutsche Bahn, a German rail company.

A part of the spending will be directed towards renewing 2,000Kms of tracks and 2,000 switching points every year, and renovation of 2,000 railways bridges by 2030. Also, around €7 billion will be used on signal-box technology with Deutsche Bahn planning to increase its fleet of rapid ICE 4 trains from 39 to 137. This could provide lucrative opportunities for foreign investors.

The 2030 Federal Transport Infrastructure Plan (FTIP) which was developed by Federal Ministry of Transport and Digital Infrastructure lays down the development plan of the Federal Government‘s transport infrastructure in Germany. As part of FTIP 2030, some of the key focus areas will include structural maintenance of the existing networks and elimination of bottlenecks on the major transport junctions as well as key transport hubs.

Of the €269.6 billion funding planned, around € 141.6 billion are earmarked for structural maintenance of the existing networks and € 98.3 billion will be spent on upgrading and new construction projects. Majority of the funding (49% or €132.8 billion) will be directed towards roadways, followed by railways (42% or €112.3 billion), and waterways (9% or €24.5 billion).

The execution of the FTIP 2030 will improve passenger rail services as well as rail freight capacity, and reduce congestion on federal trunk roads. It will also offer cost-effective transport opportunities relating to federal waterways.

Under FTIP 2030, around 2,000 project ideas were submitted by various stakeholders including members of parliament, federal states, the Federal Government, railway infrastructure companies, and other for appraisal. Of these, there were around 1,700 federal trunk roads projects, followed by federal railways (400) and federal waterways (50).

In a quest to make the entire network greener, efficient and reliable, the German government is doubling their annual investment in the rail infrastructure. This will support the growth of the infrastructure construction section in Germany.

Moreover, in September 2020, Fehmarnbelt link, the worlds' longest immersed rail and road tunnel between Germany and Denmark received approval. The construction of the Fehmarn belt is worth US$7.8 billion.

In Northern Germany, ten new construction projects for logistics and industrial space have been launched. These infrastructure construction projects are expected to support the construction industry going forward.

To know more and gain deeper understanding of Construction in Germany, click here.

[constructioninsights]

Construction in Indonesia – An Outlook

Large scale infrastructure development has been one of the topmost priorities of the current government in Indonesia. However, the wide-spread effect of the coronavirus outbreak has weighed heavily on President Joko Widodo's plans. Due to the pandemic, construction of several infrastructure projects were disrupted in the country as the government directed its budget to fund towards the unplanned COVID relief measures.

According to ConsTrack360's Q4 2020 Global Construction Survey, construction industry in Indonesia is expected to grow by 11.0% to reach US$ 67096.3 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Indonesia remains intact. The construction industry in Indonesia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 9.0% during 2021-2025. The construction output in the country is expected to reach US$ 94795.1 million by 2025.

The government spent over 90% of Rp 23.29 trillion raised from sukuk (sharia-compliant bonds) to finance infrastructure projects in 2020. Around Rp 414 trillion of funding is allocated to construction and infrastructure projects as part of the 2021 budget announced by the government. According to National Development Planning Agency (Bappenas) estimates, Indonesia will need US$429.7 billion (or 6.1% of GDP) for infrastructure development during 2020-2024. Further in January 2021, the government announced to issue sukuk of around Rp27.58 trillion (US$1.96 billion) in 2021 to fund the country’s expensive infrastructure projects and accelerate economic growth.

With the renewed interest after the coronavirus induced slowdown and facing its first recession of the century, the Indonesian government is committed to build and develop the infrastructure of the country. Both the central and regional administrations are offering lucrative benefits for investors to invest in infrastructure development projects across Indonesia. Hence, the overall outlook for the infrastructure sector remains positive in 2021.

To prevent Jakarta from flooding, the government is committed to continuing the development of National Capital Integrated Coastal Development (NCICD) in the country. The project requires a total investment of Rp 600 trillion (US$40.22 billion). But the drop in FDI investment in the last few quarters remains a concern for the government. However, in November 2020, Indonesia signed a US$750 million infrastructure and trade deal with the United States. This is expected to provide additional support for the infrastructure sector in the country.

Additionally, the government is developing the coastal barrier in the northern part of West Java, East Java provinces, Central Java, and Jakarta. The coastal barrier development project stretches over 59.1 KM and involves an investment of approximately Rp 641.5 billion.

Funded by the Japanese government - under the official development assistance loan - construction activities are completed at the Patimban seaport, which was inaugurated in December 2020. For the construction of the first phase, Indonesia took a loan of Rp 14.2 trillion (US$ 1 billion) from the Japanese government..

Construction activity of Semarang - Demak toll road, which stretches over 27 KM in Central Java is also expected to support the infrastructure sector in Indonesia. The government is also speeding up the construction activities of Moto GP support facilities. A 17.4 KM long bypass has been constructed for connecting to the Lombok International Airport.

As many 26 local and foreign companies have shown interest in the infrastructure development and operations of the Lombok International Airport. With an estimated project value of Rp 10.3 trillion (US$700 million), the overhaul of the Lombok International Airport will support the growth of the infrastructure construction sector.

In addition to this, the regional administration in Semarang is offering investors a total of five infrastructure projects. These projects are expected to involve an investment of Rp 17.13 trillion (US$1.15 billion).

The administration also promoted other infrastructure projects in the region to investors who are willing to invest in Semarang. For example, the administration is offering a light rail transit project with estimated cost of Rp 14.76 trillion; an underpass construction in Semarang costing Rp 850 billion; and a waste-to-energy plant costing Rp 1.2 trillion.

To know more and gain deeper understanding of construction in Indonesia, click here.

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Peace treaties like Abraham Accords expected to boost sentiment in the Middle East construction market

The UAE and Israel signed the historic new Abraham Accords Peace Agreement on September 15, 2020. This peace agreement comes after more than 25 years. The last time Israel signed a peace deal to normalize relations with a major Arab country was with Jordan in 1994 and Egypt in 1979 before that. Following the footsteps of the UAE, Sudan also announced the Abraham Accords Peace Agreement with Israel in October 2020.

ConsTrack360 expects these peace deals and more that follow to be a significant turning point for the construction industry in the Middle East region. The UAE, having one of the largest construction industries globally, is a good match with Israel, renowned for its technological innovation. As a result, ConsTrack360 expects the Abraham Accords Peace Agreement between the UAE and Israel to disrupt the real estate and infrastructure industry in the Middle East.

Labor shortage and the value of robotics and automation

The construction industry in the UAE, especially in Dubai, is booming thereby attracting players from around the globe.. However, this has resulted in overheating of the market and subsequently leading to a shortage of labor and skills in 2021.

Therefore, Israel being renowned for its technological innovation becomes a good match for the UAE by delivering innovative technology focused on augmenting skilled labor with machines. From this perspective, the brokered Abraham Accords deal between the UAE and Israel would not have come at a better time.

The new Abraham Accord between the two countries will attract investment in technology to fuel the growth of the booming construction sector in the Middle East. UAE is aware of the value that automation and robotics have to offer. Therefore, it is one of the areas that can disrupt the infrastructure sector in the country, while addressing the labor shortage issues.

Dubai-based logistics firms partnering with Israeli port operator

Soon after signing the historic peace agreement, Dubai-based logistics firm DP World partnered with Israeli port operator DoverTower. Under this strategic partnership, both the companies are expected to work towards the development of infrastructure in the region, which will be used for trade between the UAE and Israel.

In addition, the Dubai-based logistics firm will also assess the development ports in Israel. Moreover, the company is also looking for the potential establishment of a shipping route between Jebel Ali and Eilat. With trade between the two countries expected to be in excess of US$10 billion, ConsTrack360 expects more such collaborations between other Arab countries and Israel.

Growing tourism between the two countries

Ever since the two countries signed the Abraham Accords normalization agreement, several thousands of Israeli tourists have visited the UAE. In fact, from September 2020 to December 2020, more than 50,000 tourists have visited the UAE as per official figures. These growing tourism activities in the UAE are expected to support the growth of the hospitality and commercial construction sector in the country. With UAE spending billions of dollars every year to make the region a global tourist destination, the Abraham Accords between the two countries is expected to further push the spending on the construction of hotels and recreational facilities in the UAE.

While other Arab countries such as Oman and Qatar are still in discussion to broker the Abraham Accords agreement with Israel, ConsTrack360 expects the growing tourism between the two countries will support the growth of the construction industry across the Middle East. Moreover, a similar trend is expected in Israel once the coronavirus restrictions are lifted, and the tourism activities get started in the country. With an expectation of more than 100,000 tourists every year, this peace deal between the two nations will boost the hospitality construction industry in Israel.

To know more about  Middle East construction market Plaese CLICK HERE @ https://bit.ly/3erroUg

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Egypt Construction Industry Databook Series – Market Size & Forecast | Egypt’s Construction Industry is Expected to Reach US$44.3 Billion By 2025| Growth Opportunities, Emerging Trends, and Future Scope | Investment Opportunities | City Level Insights

In recent years, the Egyptian government has placed a strong emphasis on construction and infrastructure as a key driver of financial stability and urban growth. However, the coronavirus outbreak halted the progress of several projects in the country. While the private sector investment declined significantly, the government continued spending on construction activities of roads and bridges. As a result, the construction industry rebounded in the third and fourth quarter of 2020.

After a brief slowdown due to Covid-19, the industry is projected to grow steadily over the forecast period. In the short-term, investment in the construction industry will be largely driven by government spending in the infrastructure sector. Demand for housing construction is also expected to remain stable. Overall, despite the coronavirus pandemic, the medium to long term prospects for the Egyptian construction industry remain strong.

 The residential sector is witnessing significant growth in the country. Increasing urbanization and higher spending power of the consumer are boosting the demand for the residential sector in Egypt. Private companies as well as the government have been investing heavily in the residential market in Egypt.

The El Batal Group in Egypt is planning to launch two new residential projects in 2021. According to the El Batal Group, the Rock Yard residential project in Cairo will be developed with an overall investment of US$95 million. Whereas, the other residential project will be built in the new capital for an undisclosed amount.

 Another B2C Real Estate Company in Egypt is planning to undertake two residential projects in 2021. The Beit Al Watan project will consist of 72 housing units for an investment of US$7.6 million. Whereas, the Sheikh Zayed City residential project will consist of 50 villas for an investment of US$11 million.

The government is also pumping liquidity in the residential construction sector in Egypt. The Egyptian government is building affordable housing and reconstructing slums for the citizens. This is one of the priorities of the current government to re-build and provide affordable housing to the overpopulated neighborhoods in the country.

 While the commercial construction sector got affected due to the coronavirus outbreak, increased spending from both government and private companies has supported the industry. For instance, the El Batal Group’s Rock Vera Plaza commercial project includes the construction of 100 offices and retail units in New Cairo. Moreover, the group has a land bank of another 100 acres for developing future projects in the country.

 The New Urban Community Authority also intends to construct new cities comprising hospitals, shopping centers, schools, and entertainment facilities. Thus, providing support for the commercial construction industry in Egypt.

 The government has continuously funded the development of infrastructure projects in the country – including roads and bridges. Even during the lockdown, the infrastructure construction activities were halted for only two weeks. Several infrastructure-related megaprojects such as the New Administrative Capital, New Alamein, and New Galala - have helped the construction sector recover from the slowdown due to coronavirus outbreak.

In addition to this, the government is planning to upgrade ports, transportation networks, and airports in the courts. It is also planning to build 14 new smart cities nationwide in the coming years.

 According to ConsTrack360's Q4 2020 Global Construction Survey, construction industry in Egypt is expected to grow by 13.2% to reach US$ 34397.1 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Egypt remains intact. The construction industry in Egypt is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 6.6% during 2021-2025. The construction output in the country is expected to reach US$ 44341.2 million by 2025.

 This report from ConsTrack360 provides data and trend analyses on construction industry in Egypt, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

 It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

 Scope

• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Egypt. KPIs covered include the following:

• Market size by value

• Market size by volume of construction

• Number of units

 • Egypt Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)

• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Price point / income level (luxury, mid-tier, affordable)

• Construction stage (new construction, re-development & maintenance)

 • Egypt Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)

• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Green building by Price point / income level (luxury, mid-tier, affordable)

 • Egypt Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)

• Retail (further broken down by Grade A, Grade B, and Grade C)

• Hospitality (further broken down by Grade A, Grade B, and Grade C)

• Restaurant (further broken down by Grade A, Grade B, and Grade C)

• Entertainment

• Sports facility

• Construction stage (new construction, re-development & maintenance)

• Egypt Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction

• Retail green building construction

• Hospitality green building construction

• Restaurant green building construction

• Entertainment green building construction

• Sports facility green building construction

• Other commercial green building construction

• Egypt Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

 • Egypt Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction

• Educational construction

• Public sector

• construction stage (new construction, re-development & maintenance)

 • Egypt Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction

• Educational green building construction

 • Egypt Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure

• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)

• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)

• Construction stage (new construction, re-development & maintenance)

 • Egypt Green Infrastructure Construction: 10- year market size & forecast in value terms

To get detailed insights and FREE sample report please click here @ https://www.constrack360.com/reportstore/view/Egypt-Construction-Industry-Databook-Series-3736

 Reasons to Purchase

• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Egypt.

 • Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

 • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

 • City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.

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Construction in Saudi Arabia – An Outlook

According to ConsTrack360, the construction industry in the Kingdom of Saudi Arabia is expected to grow 18.9% in 2021. The industry is expected to continue its growth 8.9% in 2022. Increased spending and focus by the government on infrastructure and commercial projects are some key factors likely to support upward trajectory of the industry from the short to mid-term perspective.

The effort of the government to diversify the economy away from oil and to become a global tourist destination is also expected to boost the growth of the commercial construction industry in Saudi Arabia. With the country opening up again to the hospitality and leisure market, there has been an increase in the number of rooms being built in Saudi Arabia. Moreover, as traveling conditions improve across the globe, ConsTrack360 expects growth to return in the hospitality sector. Therefore, it is expected that international hoteliers will invest in the construction and development of new facilities in Saudi Arabia.

Tourism activities are expected to increase in the coming years. As a result, more than 200 projects consisting of 69,000 rooms are currently under development in Saudi Arabia. In November 2020, the crown Prince also announced that the Public Investment Fund (PIF) will inject US$40 million into the Saudi Arabia economy in 2021 and 2022.

The Saudi government also expanded the role of the PIF. The fund is now able to finance the various commercial construction projects in the country. As a result, the PIF is backing the flagship megaprojects of the crown Prince in Saudi Arabia. These include the tourism project at the Red Sea, the entertainment hub at Qiddiya, and the US$500 billion Neom economic zone. This supported by foreign direct investment will boost the growth of the commercial construction industry in the Kingdom.

Under construction mega projects are expected to support the growth

Qiddiya, the capital of entertainment in Saudi Arabia, will include more than 300 educational and recreational facilities along with a Formula One racetrack and a 20,000-seat stadium. The first phase of the US$8 billion project, is expected to open in 2023.

Jabal Omar is another mega project currently under development phase in Saudi Arabia. Spanned over an area of 40 hectares, it is one of the largest construction projects that will cost around US$4.4 billion. The commercial project which is divided into eight phases of construction will include seven-star facilities, several hotels, and dedicated prayer areas for guests arriving in the Kingdom.

Ad Diriyah is another large construction project that is being built on the outskirts of Riyadh. Expected to become one of the major tourist destinations once it comes to life, Al Diriyah will include the construction of several luxury resorts from international hotel brands. The project is expected to cost US$17 billion will also include more than 100 entertainment and dining options.

Giga-projects at Al Widyan, known as the city within the city, will also support the growth of the commercial construction sector in Saudi Arabia. Covering an area of 7 million square meters, these projects involves an overall development of cost of US$2.7 billion. From educational facilities to spaces for retail, leisure, entertainment, and offices – the mega project is aiming to target entrepreneurs in the country.

Additionally, Al Widyan will also be the home to the largest entertainment and shopping destination in the world. The major shopping center which is expected to cost US$5 billion will include recreational facilities, dining options, theme parks, and water parks among other things.

Launched in 2019, the King Salman Park mega construction project will include construction activities for open-air theatre, museums, entertainment games area, hotels, and food and retail area among other things.

Construction activities of these mega projects along with other projects such as Neom and Red Sea projects are expected to boost the commercial construction market in 2021. Investment in these substantial commercial infrastructure projects is further supporting the crown Prince Vision 2030. The construction projects are the foundation on which Saudi Arabia is envisioning the future. Therefore, the outlook for the commercial construction market remains upbeat from the short to mid-term perspective.

To know more and gain deeper understanding of construction in saudi arabia, click here

[constructioninsights]

Germany’s residential construction sector expected to record a CAGR of 5.2% during 2021-2025

The construction industry in Germany recorded a fall in activity for the first time in more than a decade. This is because several construction companies in the German economy are scaling back their building activities, as a result of the coronavirus pandemic. As per Federal Statistical Office (Destatis), construction industry turnover in January 2021 fell by 15.6% YoY.

However, despite a small dip at the beginning of COVID-19, the residential sector remained stable with trading volume of institutional investment following the pre-COVID 19 levels and prices continuing to remain high. Demand for the residential construction sector remained strong in the German market, owing to low mortgage interest rates.

According to ConsTrack360's Q4 2020 Global Construction Survey, residential construction industry in Germany is expected to grow by 15.6% to reach EUR 118,324 million in 2021. The construction industry in Germany is expected to continue over the forecast period, recording a CAGR of 5.2% during 2021-2025. The construction output in the country is expected to reach EUR 167,455 million by 2025.

In 2020, transaction volume stood at €21.7 billion (approximately 164,500 units) with German commercial market for residential property investments recording the second highest transaction volume since 2005. The investment volume stood at €5.2 billion (around 33,100 units) which was significantly greater than in both previous quarters (+53% above their combined average).

As demand outstripped supply and availability of cheap mortgage rate, the prices of residential property in Germany rose. In Q4’20, residential property prices rose by 8.1% YoY, as per Destatis. Despite the COVID-19 pandemic impact, the trend of increasing property prices continued, with increase in Q4’20 the strongest since Q4’16.

The supply of houses has been lagging behind demand owing to rising construction and land prices, housing policy interventions and a shortage of land in urban areas. Germany lacks around 670,000 apartments nationwide. Owing to the low supply, the federal, state and local governments followed various measures including offering billion euros for social housing construction and tax incentives for the construction of rental apartments, with an aim to build 1.5 million new homes by fall 2021.

Due to lack of supply and increasing housing costs, the population influx into the major cities has been falling for some time now, and this has been even further intensified by the COVID-19 movement restrictions. Moreover, the increasing work from home trend and the savings in commuting costs have caused the catchment area around the regional labor and residential markets to widen, which has mainly benefitted suburban areas around the top cities.

Moreover, the prices for single-family and two-family houses also increased significantly. Additionally, housing prices surged  by 12.1% YoY in Q4’20 in Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Duesseldorf, the largest cities in the country.

Furthermore, prices of owner-occupied apartments continued to increase in urban and rural areas. Also, condominiums recorded the highest price increase of 8.9% in more densely populated rural counties.

As housing remains a basic need for people, federal and state governments have taken several initiatives to support tenants. These include elimination of termination due to rent debts for a period of three months, which also includes delays in gas, electricity and telephone bill payments.  Also, due to stagnant income and significant decline in immigration, the excess demand for housing has eased for the time being.

With continuous key interest rate cuts over recent decades, mortgage interest rates in Germany also fell considerably reaching a low of 1.95% in 2018, making it favorable for both institutional and private investors on the financing side of residential property investments.

Owing to favorable financing level, the share of mortgage loans with long-term fixed interest rates has also increased in the recent years. While the share of housing loans with a term of more than ten years was below 20% around twenty years ago, these loans now account for almost half of all mortgage loans.

While the population is expected to decline from 2021 onwards, according to Federal Statistical Office estimations, the number of households is expected to grow to around 43.2 million (+5.9% by 2015) by 2035. Owing to this, a steady rise in demand for housing can be expected in Germany until at least 2035 due to higher household numbers.

In January 2021, the construction of a total of 27,654 dwellings was permitted in Germany. Also, as per Destatis there was a rise of 5.1% in seasonally and calendar adjusted terms QoQ in January 2021. From January to December 2020, construction of a total of 368,400 dwellings (residential and non-residential) was permitted in Germany, an increase of 2.2% or 7,900 dwellings over 2019.

To know more and gain deeper understanding of construction in Germany, click here.

[constructioninsights]

Global Construction Companies are Increasing Marketing Budget to Intensify Focus in Africa

The African construction industry is one of the fastest growing regions globally. The growth in the region is expected to be broad-based with increased construction activity across residential, commercial, institutional and infrastructure sectors. Most countries in the continent are progressing with various government initiatives as well as regional investments that are backed by foreign investment. In line with other emerging markets, the growth is driven by ongoing infrastructure projects that are funded by public-private partnership model.

African construction industry is expected to increase at a CAGR of 6.9%, over the forecast period. Infrastructure construction in East African countries, namely Ethiopia, Kenya, Rwanda, Mozambique and Tanzania, is expected to post robust growth over the forecast period.

Construction industry is becoming a key driver for African economies, accounting for 10-15% of GDP. The development in the region is attracting investment from all over the globe, which is further creating opportunities and boosting workforce in the construction of residential, commercial, institutional, and industrial buildings. There is also increased focus on prefabricated construction and sustainability.

Affordable housing, a part of residential development, is one of the key pillars of growth that aims to transform the construction industry.

The construction industry in Morocco is likely to grow in line with the country’s economic expansion. Whereas, Morocco’s construction industry is projected to rise at a CAGR of 7.0%, over the forecast period.

Infrastructure construction in West African countries such as Nigeria, Ghana, Senegal, and Ivory Coast also shows steady acceleration during the forecast period. The push comes in line with the government plans that aim to revitalise the economy. Construction industry in these countriesare expected to record CAGR of over 8.5% during 2019-2023, according to ConsTrack360.

Of the US$ 120 billion investment in infrastructure spending across 92 projects, Nigeria gets a share of 61% and that which accounts to nearly US$ 73 billion, second only to South Africa.

The year 2017 and 2018 had been remarkably challenging for construction industry in South Africa. Due to political and policy insecurities, key South African construction companies have recorded sharp fall in their share prices. The economy has somewhat shown positive growth in H2 2018 and it is expected to bounce back in 2019 though concerns on macroeconomic fundamentals remain.

The current growth challenge in South African construction industry is partly due to lesser new infrastructure projects. Due to slow economic growth, the government didn’t roll out any major infrastructure projects, leading to value erosion across the value chain. Uncertain policies have added to the woes of construction industry. With South African construction industry not so promising, two big players in this industry, Esor and Basil Read have decided not to trade their shares on JSE, following the announcements of business rescue.

However, the government is striving to stabilise the economy besides the demands of private sector investment. ConsTrack360 expects construction activity to pick up over the next four quarters though macroeconomic growth challenges are likely to persist. A budget of over ZAR 800 billion has been proposed aiming public infrastructure development. An additional 25% of proposed budget has been allocated for energy sector to spend on electricity, expanding public transport, up gradation of roads, advancement of health sector and schools.

To know more and gain deeper understanding of construction industry in Africa, click here.

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Growing Middle East economy to aid recovery of construction market

The Middle East construction market is growing rapidly to reach US$ 434 billion by 2013. According to ConsTrack360, steady economic development has led to increased construction activity across building and infrastructure sectors.

The anticipated growth in the Middle East construction market comes with GCC (Gulf Cooperation Council) countries offering long terms plans that focus on social infrastructure, tourism and transportation. Key indicators include moderately stabilized oil prices, increasing tourism as well as mega events such as Dubai 2020 Expo, FIFA World Cup 2022 along with a range of large-scale projects in Qatar, and International airport expansion in Kuwait amongst others.

Largest Middle East nation geographically, Saudi Arabia has planned large scale capital projects that will boost growth of construction industry. There are over 900 projects scheduled to begin work and that which are due by or before 2023. ‘Saudi Vision 2030’ lead by Public Investment Fund (PIF) is expected to have a major impact on the construction projects that include both residential and non-residential segments which includes commercial, institutional, industrial, and infrastructure segments. The Saudi Arabian construction industry in value terms increased at a CAGR of 4.4% during 2014-2018. Over the forecast period of 2019 to 2023, the industry is expected to record a CAGR of 5.8%.

The growth also comes with the Kingdom’s plan to increase contribution of private sector in industries such as healthcare, manufacturing, mining and transportation amongst others. The move, which includes new investment opportunities, would be done through joint ventures or public-private sector partnerships.

The construction market in the United Arab Emirates (UAE) has remained stable with commercial buildings driving the segment, while economic diversification gathering pace and pushing all the seven emirates to develop higher-value services. The UAE commercial building construction market in value terms increased at a CAGR of 9.5% during 2014-2018. Over the forecast period of 2019 to 2023, the market is expected to record a CAGR of 7.7%.

Deemed as a substantial on short term, Dubai 2020 Expo aims at driving commercial activity while boosting tourism. On long term, the country aims at stimulating investment in commercial buildings in Abu Dhabi, diversifying from oil-based revenues.

Abu Dhabi government aims to attract over eight million tourists annually by 2030 under its ‘Abu Dhabi 2030 Plan’, nearly doubling it from current status. It also plans to expand in retail space to 4 million square meters and office space to 7.5 million square meters by 2030.

Qatar is likely to emerge as one of the fastest growing construction markets globally. The construction industry in value terms increased at a CAGR of 6.9% during 2014-2018. Over the forecast period of 2019 to 2023, the industry is expected to record a CAGR of 12.1%, increasing from QAR 123,998.2 million in 2019 to reach QAR 195,559.3 million by 2023.

It has high investment confidence and public spending capacity, with numerous large-scale infrastructure projects underway, owing to preparation of FIFA 2022 World Cup.

The Qatar government also is working to be committed to the development of non-residential projects along with expansion of rail and road networks. It also plans to improve its health and education sectors along with tourism.

Kuwait is moving towards its strong initiative to focus on infrastructure and invest in activities related to the construction sector. Its main focus is on PPP (Public-Private-Partnership) projects as it aims to minimise risk and boost commercial returns. New residential cities are being developed along with US$ 18 billion worth railway system and US$ 12 billion airport, signalling investors that it is open to develop at a fast pace.

Egypt’s construction industry is known to be stable and steady with focus on utilities growth along with residential sector. Egyptian government aims to attract foreign investment that supports development of major projects. The country has a strong infrastructure project pipeline.

To know more and gain deeper understanding of construction industry in Middle East, click here.

[constructioninsights]

Construction industry expected to post strong growth across key Latin American markets

Economic growth across key Latin American economies is expected to improve in 2019 and over the forecast period, resulting in positive outlook across building and infrastructure construction sectors. GDP growth is expected to average around 2.7% in the region over the next four quarters, significantly higher than previous four quarters. This is expected to result in stable commodity prices, improved business confidence, and increased consumption.

Socio-economic factors as well as political turbulence in Latin America are considered to be the major reasons for construction industry witnessing deteriorating cash flow, hitting a plateau in recent years. Owing to the rising fuel prices, Latin American countries have been in state of unrest. This could also undermine the social stability in the region over the forecast period.

However, Latin America is likely to witness growth in its construction industry after sluggish period. The factors those are likely to contribute include increase in commodity prices, private capital infrastructure developments through Public Private Partnerships (PPPs) as well as State-run funds.

Known to be the largest construction market in the Latin American region, Brazil is expected to report an annual growth of 2.3% over the next five years. The government will invest nearly BRL 130 billion to resume 7,000 construction projects under the ‘Agora é Avançar’ scheme that aims to resume and complete previously stalled works.

Argentina is likely to boost growth in the region with 1.9% for the forecast period of 2018-2023. The Argentinean growth is driven by the passing of the law that allows public-private partnerships (PPPs) for infrastructure projects, which previously were undertaken by the state, thus protecting private investors and favouring financing.

Chile is witnessing accelerated growth, boosting the Latin American region’s economy. It has unveiled state-owned company ‘Fondo de Infaestructura’ to manage capital for infrastructure projects, with an aim to remove political influences and gain quick access to large projects.

Colombia is likely to report annual growth rate of 3.6% during the forecast period 2018-2023 for the Latin American region. It also has attracted investment of over US$ 18 billion for 32 road toll projects though PPP programmes.

Mexico aims to grow by 3.1% by 2020. One of the major concerns for Mexico is its high priority for secure trade negotiations to boost exports, which further will diversify and strengthen Latin American countries' trading partners.

To know more and gain deeper understanding of construction industry in Latin America, click here.

[constructioninsights]

Conventional construction companies are shifting towards green construction

In recent years, construction companies have been more focused on building sustainability. Over the last few quarters, there has been a steep increase in attention and concern towards the environment. Consequently, conventional construction firms are increasingly shifting towards green construction activities around the world. The trend is also observed in India, where conventional construction companies invest in green construction to meet the rising demand.  

ACC and Ambuja Cement are focusing on green and sustainable construction in India

In line with the net-zero target for 2050, ACC and Ambuja Cement have taken an industry-first approach to reduce CO2 emissions in India. By leveraging sustainable construction through green products, both firms are committed to making a concrete difference in the areas of carbon footprint reduction, protection of natural resources, the welfare of communities, and circular economy.  

Both the companies have developed a range of responsible and green products through their innovation and R&D. Therefore, putting the firms at the forefront of high-performing and circular construction in India. The green products line from ACC, and Ambuja Cement is allowing the companies to contribute to the United Nations’ Sustainable Development Goals (UN SDGs) in a meaningful manner.  

Notably, nearly 90% of the product portfolio of Ambuja Cement is a low-carbon fly ash-based PPC and composite cement. Moreover, innovative products such as AAC Cool Wall Blocks, PuraSand, Ambuja Kawach, Ambuja Roof Plus, and Composite Plus are also addressing the sustainability issues in the construction industry in India.  

The new sustainable construction product Ambuja Kawach is a specially formulated product that comes with high-quality water repellent properties, therefore, acting as a shield against water seepage in all construction applications. Moreover, the sustainable product also ensures that the structure is able to withstand the vagaries of harsh weather. Notably, the Ambuja Kawach product from Ambuja Cement was also certified Solar Impulse Foundation, an international organization, as an efficient solution.  

For ACC, the low carbon concrete ECOPact has ensured that the firm is having a strong impact on its eco-conscious Individual Home Builder (IHB) and community of builders. Notably, the innovative and modern manufacturing process of the ECOPact reduces the CO2 emissions by up to 100%, therefore, enhancing the sustainable offerings for the construction industry in India.  

The United Nations Sustainable Development Goals (UNSDGs)

The Sustainable Development Goals of the United Nations provide an urgent call-to-action and a practical framework for firms to chart their sustainability journey. Notably, the sustainability initiative of both ACC and Ambuja Cement is linked with one or more UN SDGs. Moreover, both the companies have also adopted other initiatives which focus on four priority areas. These include circular economy, climate and energy, environment, and people and community.  

Notably, Ambuja Cement has been certified eight times water positive in the construction industry. The firm reduced its specific net CO2 per ton of cementitious product to 531 kg in 2020. Moreover, to contribute towards the circular economy, the construction firm co-processed around 2.75 lakhs ton of waste in its kilns and captive power plants, including more than 83,000 tons of plastic waste. Ambuja Cement also consumed 8 million tons of waste-derived alternative raw materials, including ash, slag, fly, and synthetic gypsum, in the manufacturing process.  

On the other hand, ACC is the first Indian Cement Firm to sign the net-zero pledge with Science-Based Targets. The company has signed the Business Ambition for 1.5°C pledge and has also joined the Race to Zero campaign of the United Nations Framework Convention on Climate Change.  

By 2030, the firm has committed to reducing the scope of 1 GHG emission 21.3% per ton of cementitious from the 2018 base year. Moreover, the firm has also committed to reducing scope 2 GHG emissions by 48.4% per ton of cementitious material during the same time frame. Notably, both the firms have accelerated their de-carbonization agenda as well, which aims to generate green and clean energy.  

These agendas are expected to be delivered through measures, including a waste heat recovery system, using more renewable energy, and reducing the amount of clinker used in the manufacturing process. These initiatives further boost ACC and Ambuja Cement’s solid foundation in sustainability to drive positive change in the construction industry in India.  

To know more and gain deeper understanding of green construction in India, click here.