The global construction industry is facing continued challenges, particularly in the housing sector, which is expected to weigh on overall industry growth in 2024.
Despite some growth in 2023, driven largely by strong performances in China and the US, the industry remains fragile, with significant variations in performance across different regions and sectors, reports Al-Qabas daily.
One of the key factors affecting the industry is the high level of interest rates, which has led to a sharp decline in new investment in residential building projects. This decline has been particularly pronounced in North America and Europe, where residential building permits have decreased significantly.
Although activity levels in some major markets have held up better than expected, there are concerns that a significant downturn may still occur.
As a result of these challenges, GlobalData forecasts a contraction of 1.2% in construction activity in advanced economies in 2024. However, emerging markets, particularly China and India, are expected to see expansions in construction activity, driven by large-scale projects and infrastructure investments. Overall, emerging markets are forecasted to achieve growth of 2.6% in 2024, following a 5.6% increase in 2023.
Despite the challenges facing the global construction industry, there are opportunities for growth, particularly in emerging markets where demand for infrastructure development remains strong. However, navigating the macroeconomic and geopolitical challenges will be crucial for industry players to sustain growth and adapt to changing market conditions.
