DUBLIN–(BUSINESS WIRE)–The “South Africa Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
The construction industry in South Africa is expected to grow by 5.3% to reach ZAR 221,128 million in 2022
Despite near-term challenges in certain construction sectors, medium to long term growth story in South Africa remains intact. The construction industry in South Africa is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 6.2% during 2022-2026. The construction output in the country is expected to reach ZAR 265,808.2 million by 2026.
The fragile construction industry in South Africa is getting further weakened by the persisting lack of implementation of the infrastructure delivery plan by the government. This, along with the implementation of residential, retail, and commercial projects in the country from the private sector, has also impacted industry growth.
Notably, the poor economic state and the consequences of the global pandemic outbreak have resulted in several significant project delays and cancellations over the last two years, thereby resulting in the contraction of the construction sector. The publisher expects the industry to remain under pressure owing to the rising material costs and supply chain crisis from the short-term perspective. However, with the government undertaking various infrastructure development projects in H1 2022 should aid the recovery of the sector in South Africa.
The South African government is undertaking key infrastructure projects to drive industry growth and boost the economy
To aid the recovery of the construction sector in South Africa, the government has undertaken several key infrastructure projects and fast-tracked them for approval in H1 2022.
In May 2022, the South African government gazetted the details of 51 key infrastructure projects and announced that these projects would be fast-tracked for necessary approvals. These projects, expected to commence construction activities in H2 2022, are projected to assist the market recovery in South Africa.
These infrastructure projects include water and sanitation, energy, and transport. For water and sanitation projects, the government has approved an investment of US$6.4 billion. For energy projects, the government has approved US$3.5 billion in investment. For transport projects, the government allocated US$2.9 billion, and for the affordable housing program, a total of US$8.4 billion will be invested.
The investment from the government towards developing and constructing the infrastructure in the country is projected to assist the industry recovery and growth from the medium to long-term perspective.
South African courts halt construction activities at the US$300 million Africa headquarter in Cape Town
The delays in construction projects have been one of the major factors affecting the growth of the industry in South Africa over the last decade, and the trends have been continuing in 2022.
In March 2022, the global expansion plan of Amazon hit a roadblock after the court in South Africa ordered to stop the construction activities at the US$300 million Africa headquarter of Amazon in Cape Town. Notably, the judge, who ordered the halt of construction activities, said that the developer did not consult indigenous people about building on sacred ground.
The commercial construction project approved by Cape Town in 2021 was to include a hotel, retail, and offices. Notably, the extended delay in the project can lead to a collapse of the project, as Amazon can pull out of the project. The development of the project was projected to create 19,000 jobs and almost 500,000 square feet of commercial and residential space.
The publisher expects any further delay in the construction of the project to impact the growth of the construction industry in South Africa from the short to medium-term perspective.
Green building financing program is expected to support the construction industry while tackling energy issues faced by South Africa
To help fund environmentally friendly industrial and retail sites in South Africa, which will also help the country is tackling energy issues, the country is launching a green building financing program.
In April 2022, the Finance Corporation (IFC) and Business Partners launched an R270 million green building financing program in South Africa. The program will offer funding to install technologies for reducing water and electricity consumption by at least 20%. The R270 million funding is projected to result in 100 to 120 green buildings in the country.
The publisher expects the country to launch more such funding packages in the country over the next three to four years, which will keep aiding the growth recovery of the construction sector from the short to medium-term perspective.
Reasons to buy
- In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in South Africa.
- Top Ten Cities Construction Value Data
- Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period
- Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.
- City Level Insights: Get city level trend analyses by tier-1, tier-2, and tier-3 cities.
Scope
South Africa Top Cities Construction Data
South Africa 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)
South Africa 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)
South Africa 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
- Construction stage (new construction, re-development & maintenance)
South Africa 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
South Africa Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
South Africa Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Public sector
- Construction stage (new construction, re-development & maintenance)
South Africa 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
South Africa 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)
South Africa Green Infrastructure Construction: 10- year market size & forecast in value terms
For more information about this report visit https://www.researchandmarkets.com/r/dk3mbe
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