Following the pandemic, the global construction industry began its recovery as covid restrictions eased, thereby boosting construction activities. Notably, the double-digit growth in the residential construction sector since Q3 2020 has made a significant contribution to the rebound of the overall economy and construction industry according to data released by Benziga.
Due to the prolonged suspension of economic activities, Africa’s construction industry was largely affected due to the prolonged suspension of economic activities. However, the sector showed some recovery in the last three to four quarters with various upcoming construction projects across the region.
Meanwhile, the Asia Pacific construction industry recorded significant growth in 2021 as demand for residential construction remained strong in big economies. On the other hand, infrastructure construction experienced more significant investments, and regional construction companies expanded in other markets. According to the publisher’s Q4 2021 Global Construction Market Survey, demand for commercial properties remains stable as key e-commerce companies create demand for larger commercial spaces.
In China, Chinese authorities are loosening restrictions on home approvals and lending to avoid industry collapse. With the construction industry facing many operational challenges, authorities have started to loosen restrictions on home approvals and lending to avoid a complete collapse. According to the ‘Q4 2021 Global Construction Market Survey’, in China, bank credit is being offered to property firms much higher than in any period during Q2 2021 and Q3 2021. Notably, mortgage lending in China increased by more than US$30 billion (200 billion yuan) in October 2021 from around US$23 billion (150 billion yuan) in September 2021.
The Chinese Government is looking to ensure that there is enough liquidity to maintain construction in the property sector.
The construction industry is growing rapidly in the United Kingdom. A sharp increase in business activity was seen across all areas of the construction industry, including the residential, commercial, and infrastructure sectors. However, the housebuilding sector remains one of the fastest-growing in the United Kingdom construction industry.
The European construction industry faced many socio-economic challenges in 2021. The rising prices of key raw materials, including iron, steel, and copper, are causing deep concerns for construction companies operating in the region. Moreover, lack of manpower and disruption in the supply chain was affected the construction activities. However, many governments have taken strong steps to support the construction industry which helped the industry to record stable growth in the last two quarters.
The commercial infrastructure sector is expected to assist the growth of the industry in the UAE. Over the last decade or so, the UAE has emerged as one of the most popular tourist destinations, and the country intends to keep it that way. For instance, in the commercial infrastructure space, Abu Dhabi is planning to attract almost 8 million tourists annually by 2030 under the Abu Dhabi Plan 2030.
For serving the huge inflow of tourists, the government is planning to boost investment in the commercial infrastructure space from the short to medium-term perspective. Furthermore, the country is also hoping to expand its retail and office space to four million square meters by 2030. All of these factors are expected to support the growth of the commercial infrastructure sector in the UAE in the near term. Moreover, nearly 160 hotel construction projects with more than 45,700 rooms are in the pipeline. This will subsequently assist the overall construction industry in the next four to eight quarters in the country.
The construction industry outlook remains stable from the short to medium-term perspective in the United States and the North American region. In the United States, several projects are working their way through the planning phase, whereas others have finally resumed after a year of the global pandemic caused delays.