Published By : 10 Nov 2015 | Published By : QYRESEARCH
In China, which is the second largest economy in the world, the construction sector is forecasted to reach record lows in the near term, as housing construction registering decline for the very first time.
Then onwards, construction is expected to make a slight recovery in the years leading to 2030, as started by a report recently released by the Global Construction Perspectives and Oxford Economics. China accounts for driving the construction sector in the world significantly followed by the U.S. and India.
In China, the construction activity has passed its peak in 2013. Since last year, the construction sector is experiencing decline both in terms of new starts and sales volume, as stated by the head of research at JLL real estate consultancy in China. He further stated although the housing market has been declining since last year, there is positive outlook that the market will stabilize.
Between 2014 and 2020, the construction output is expected to rise at 3.9% annually, which is less than one-third of the construction growth rate observed between 2005 and 2014. However, in the long run, the growth in the construction sector is expected to reach 4.8% between 2020 and 2025, and 5.2% in 2025 and 2030.
In the construction sector, housing will rise at the slowest displaying growth rate of only 2.5% annually until 2020, before it reaches 4% for the period 2020 to 2030. Last year, the housing sector represented 40% of the construction sector and the sector expanded at 11% every year between 2005 and 2014.
In spite of the slowdown Chin remains the largest construction market in the world. By 2030, it is slated that China, India, and the U.S. will account for 57% of the global growth in construction and engineering activities, which will amount to more than US$4.5 trillion to the growth of the construction sector.