Asian Pacific economies were hard hit by COVID-19, leading to setback in construction activities in the first half of 2020. Robust Chinese recovery, however, boosted construction output in the second half of the year. Heavy infrastructure investments, rebounding consumer and business confidence boost demand for construction through to 2030. Moreover, robust expansion in global demand for building materials boost construction costs, leading to the industry’s rising production value.
This report comes in PPT.
Despite setback in construction and real estate activities during the first half of 2020 as the global pandemic hit countries in Asia Pacific, the region is projected to quickly pick up in 2021 and sustain healthy growth over the forecast period. The Asia Pacific region is set to remain the key construction and real estate market, accounting for nearly 40% of the global industry’s output value by 2030. During the period of 2020-2030, Asia Pacific construction and real estate production value is projected to record a CAGR of 6%, notably surpassing projected growth of other key markets including Western Europe and North America.
China is set to remain the key global construction and real estate market, driving regional growth over the forecast period. Decades of heavy Chinese investments into infrastructure developments, rapidly expanding urban population, and intensive foreign direct investments (FDI) into manufacturing facilities in the country played a vital role in the construction industry’s growth in China. Faced with the COVID-19 outbreak, China saw contraction in residential and non-residential construction during the first half of 2020, yet managed to swiftly enter recovery as consumer and business confidence rebounded. Roll-out of the vaccination process in 2021 further supports a positive economic outlook, fuelling further recovery in consumption. Moreover, with the global rise in prices of construction materials, including metals and wood, Chinese construction companies see a robust increase in production costs, yet so far are able to pass rising costs onto final consumers.
Government investment in infrastructure plays a vital role in the construction and real estate industry’s recovery following the COVID-19 downturn. Major investments planned in China, India, Japan and other regional leaders are set to drive the industry’s growth in the Asia Pacific region over the short to medium term.
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