Construction to shoot up in emerging markets

Emerging markets are expected to grow by a whopping 110% in the next 7 years, according to the Royal Institution of Chartered Surveoyors.

Emerging markets will become a $7 trillion market in 2020, representing a massive 17.2% of GDP, predicts the RICS. Conversely, developed countries will only grow by 35% from $4.2 trillion today to an estimated $5.7 trillion market by 2020.

India, China, Asia Pacific, South and Central America, Middle East and Africa and parts of East Europe to see most dynamic growth for construction

China, India and Brazil are likely to drive in the highest real estate growth over the next decade. In these countries, the opportunities for infrastructure development and construction will be driven by increasing purchasing power, labour mobility, demands for higher living standards and major upgrades in transport systems, utilities and buildings. China will be the world's leading construction market by 2018. However, the construction growth rate will be higher in India. It is expected to touch the double digit in both the residential and non-residential markets on the short term basis.

Increased availability of capital and resurgence in manufacturing has already led to recovery in the commercial realty market worldwide. Investments in transportation, education facilities, highways, healthcare facilities, hotels and hospitality, government offices will further accentuate the construction growth. But, fiscal deficits and reduced government spending will continue to hold back construction growth in some of the developed countries.

Indeed, India is set to become the world's fastest growing economy and likely to be the world's third-largest economy by 2030. The country is home to 17% of the global population, despite only covering only 2.4% of the world's geographical area.
India also ranks third in terms of attractiveness as a destination for FDI.