Global Overview of the Construction and Real Estate Industry

Delivery

This report comes in PPT.

Key findings

Infrastructure remains the key driver of construction industry

Amidst rising interest rates and elevated costs of living, residential, industrial and commercial construction has been seeing some setbacks in 2022. Nevertheless, post-COVID-19 governmental commitments to invest in public infrastructure prevail, driving demand in the construction industry and supporting its growth in turbulent times.

Builders were able to pass rising costs onto final consumers

Soaring energy and commodities prices in 2022 alongside rising wages and labour shortages led to escalating construction costs during the year. Nevertheless, solid demand allowed the industry to pass increased costs onto consumers and maintain profitability. Demand, however, has been pressured by rising interest rates and elevated economic uncertainties, clouding the future outlook of the sector’s profitability and overall growth

Energy efficiency and green technologies on the rise

Rising energy costs also pushed demand for energy-efficient buildings alongside expanding environmental awareness, especially among developed economies, promoting expansion of green building practices. Energy efficiency, green construction technologies and climate-neutral building materials will witness robust expansion over the forecast period.

Emerging markets to demonstrate solid growth, while construction in developed economies stagnates

Following solid expansion in construction activities amidst heavy investments in infrastructure and booming housing markets, developed economies saw economic slowdown in 2022, leading to setbacks in construction. Nevertheless, emerging economies maintained pace, despite rising costs, and are projected to remain the key drivers of the global construction industry.