Latin America Construction Industry Report 2024-2028: Urbanization Fuelling Demand, Challenges in Financing and Labour, Changing Demands, Enhancing Public Services Influencing Output - ResearchAndMarkets.com

The "Latin America Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

This report provides data and trend analyses on Latin America construction industry, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 1,500+ charts and 1,200+ tables. It details market size & forecast, top cities construction data, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

The Latin American construction industry is poised for growth, driven by increasing demand for real estate, infrastructure, and government initiatives. However, the sector also faces challenges, including limited access to financing and a need for more skilled labour. To navigate this evolving landscape, stakeholders must focus on innovative solutions, strategic partnerships, and workforce development initiatives. By adapting to changing market dynamics and prioritizing sustainability, the Latin American construction industry can unlock its full potential and contribute to the region's economic and social development.

The Latin American construction industry is poised for growth, driven by increasing demand for real estate, infrastructure, and government initiatives to boost construction output. However, the sector also faces challenges, including limited access to financing and a shortage of skilled labour.

• Urbanization Fuelling Demand: Urbanization is one of the main factors boosting the Latin American construction industry. As more people relocate to cities for better economic prospects, the demand for new homes, businesses, and infrastructure projects like roads, bridges, and public transportation systems increases.
• Challenges in Financing and Labour: Despite factors encouraging expansion, Latin America's construction industry faces several obstacles. Lack of funding for construction projects is among the major problems, with large-scale projects being challenging to finance in many regions due to limited access to financing. Additionally, a shortage of skilled labour, especially in technical professions like engineering and architecture, may make it difficult to complete construction projects on schedule and within budget.

Residential Construction: Adapting to Changing Demands

• Growth in Affordable Housing: The residential construction sector is expanding quickly in Latin America, with countries like Colombia implementing policies to encourage and subsidize construction and housing investment to meet the growing demand for urban housing.
• Hospitality Construction Pipeline Recovery: The Latin American hotel industry is recovering after nearly two years of uncertainty caused by the pandemic. In Q2 2022, the region's total hospitality construction pipeline included 555 projects and 90,496 rooms, with 40 projects totalling 8,481 rooms beginning construction in the year's first half.

Commercial Construction: Attracting Investors

• Steady Performance in Office Markets: The Brazilian economy's recovery is contributing to the steady performance of the Class A office market, while countries like Panama are attracting investors from around the world, driving up real estate prices.
• Lodging Market Transformation: The Latin American lodging market is undergoing a significant economic transformation, consistent investment in existing and new hospitality projects driving lodging demand. Countries like Mexico, Chile, Colombia, and Peru are investing in their lodging markets, which is expected to increase the hotel supply ratio in the coming years.

Institutional Construction: Enhancing Public Services

• Investment in Healthcare and Education: Increased government spending on healthcare and educational facilities benefits institutional construction as countries prioritize enhancing public services and improving quality of life.
• Sustainability Initiatives: Institutional projects increasingly incorporate sustainability measures, with governments implementing regulations requiring energy-efficient designs and materials to align with broader environmental goals.

Industrial Construction: Supporting Economic Growth

• Expansion of Manufacturing and Logistics Facilities: The industrial construction sector is witnessing growth driven by increased demand for manufacturing and logistics facilities, supported by government initiatives to boost local production and enhance supply chain resilience.
• Focus on Renewable Energy Projects: There is a notable increase in construction activity related to renewable energy projects, with governments prioritizing investments in solar, wind, and other sustainable energy sources to meet climate targets and promote green economic growth.

Infrastructure Construction: Driving Regional Development

• Major Infrastructure Investments: Infrastructure construction remains a key focus area for governments across Latin America, with significant investments planned for transportation networks, urban development initiatives, and public utilities. For example, the Brazilian government has unveiled a US$76 billion public spending program to drive infrastructure development over the next four years.

Scope: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Economic Indicators

Top Cities Construction Data

Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Infrastructure Construction Sectors: 10-year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Green Infrastructure Construction: 10-year market size & forecast in value terms

Construction Cost Structure Analysis: 10-year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)
• Type of Labour (Skilled vs. unskilled)

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