Asia’s urbanisation: a fruitful arena for global construction projects.
The global construction project arena is shifting its weight. Over the next decade construction markets will be particularly dominated by a substantial number of Asian young guns. An impetus of construction projects in Asia are predominantly motivated by a significant influx of people into urban areas. The notable ascent has lead the Building Radar research team to conclude that countries such as Indonesia and the Philippines are establishing themselves as tomorrow’s dynamic Asian Tigers. Indeed, global markets are believed to go off by approximately 70%. According to the Global Construction 2025 report the construction project sector will account for 13.5% of world output; largely driven by Asia’s new faces.
New Asian Tigers
Asian construction projects face a primary challenge that is the gradual urbanisation of the majority of Asian cities. This is evident in the ever more growing dimensions of global metropolises. Both, Indonesia’s capital city of Jakarta as well as Manila, the capital of the Philippines, belong to the fastest growing megacities in accordance with Forbes. The Global Construction 2025 report suggests that by 2050 urban populations will have to accommodate yet another two billion people. In this spirit facilitating effective and sustainable housing and additional workplaces will be a primary concern and bestow upon Asia’s construction project industry a key economic role.
Based on its immense population the Chinese construction project market will dominate world construction growth accounting for nearly two thirds of its output. Whereas China’s share in this substantial expansion has been a largely anticipated, novel players such as the Philippines, Vietnam and Indonesia are similarly contributing forces. The booming Asian construction project industry will undoubtedly trigger over all regional growth, but specifically ensure the continuous development of Southeast Asia’s economies.
Asian construction project hub Indonesia
Out of the three new driving forces behind the general promotion of Asia’s construction project industry Indonesia is said to be the most dynamic actor. Indonesia’s performance is underscored by estimates of a domestic construction sector that will grow by approximately 6% over the next eleven years. Indonesia, that is home to a population of 252 million, will position the third largest housing market globally, with reference to the myriad new homes it will be building in the foreseeable future. Thus the insular state will even exceed housing construction projects conducted within our domestic American construction project industry. Both, Vietnam and the Philippines will realise growth at a rate of 5% during the next decade, which is an equally substantial increase.
Economic development will naturally ask for considerable investments into the expansion of construction projects and infrastructure. Ultimately Vietnam, Indonesia and the Philippines will profit from inter-regional trade, as well as trade with the area’s economic hegemon China.
Southeast Asian construction boom- your opportunity
The immense growth of the Asian construction project market offers notable opportunities for the international real estate industry and will ask domestic actors to shift their focus accordingly. In this spirit Building Radar concludes that it will be vital to not just realise this fundamental change of impact but to actively engage in said. Generating intelligence on particular future construction enterprises, of which there will be a vast number within the Asian construction project industry, will be key to successfully expanding business growth. The Asian construction project boom, particularly triggered by its new Tigers, offers a very much relevant opportunity. It is therefore imperative to capitalise on the many opportunities that are inherent in Asia’s construction project beacon. Anticipate the future, because the Asian construction project future is bright.