Latin America Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)
The size of the Latin America Construction Market is valued at about USD 643.80 billion in the current year and is anticipated to register a CAGR of over 4.5% during the forecast period. The growing demand for real estate and infrastructure in the region is driving the market. Furthermore, government projects and policies easing the construction output are driving the market.
Key HighlightsColombia's supply of urban housing has been increasing, according to government and industry figures. However, it has not been sufficient to offset demand: according to official statistics, the country's housing stock is more than 1.3 million homes short. The government has implemented policies to meet the demand that encourages and subsidizes construction and housing investment. Colombia is experiencing the region's fastest-growing construction boom.
Because of its exceptional business conditions, Panama is on the minds of American, European, and Latin American investors. It's no secret that this tiny country is one of Mundo's favourites. It is the location where a group of consultants decided to establish Mundo some time ago. In recent decades, Panama has experienced a miraculous economic boom. We called it Panamanian Exceptionalism because of the country's stability and low inflation rates, which are unusual in Latin America, a region accustomed to military coups, high inflation, and worthless currencies. The real estate industry is thriving as a result of liberal economic policies and political stability. Over the last decade, investors from the United States, Colombia, and Asia have rushed to meet demand, pushing prices up by 5 to 10% per year.
The Brazilian economy recovered more solidly than expected, with indicators higher than in the first quarter, and despite a decrease in the volume of transactions and the vacancy of some spaces still, in process, the performance of the Class A office market in this market continues at a steady pace in this first semester. The availability rate is still stable but high at 35.37%, down from 35.45% in the first quarter of the year. Despite being low, activity in new occupations outpaced that of unemployment in most corridors of this important city.
Development of hospitality infrastructure driving the marketDespite economic pressures, the Latin American lodging market is undergoing a "significant economic transformation," according to a report by one of the industry experts. Consistent investment in existing and new hospitality projects is expected to drive lodging demand and support supply growth through 2025. With an existing hotel supply ratio (a measure of the estimated relevant hotel rooms in a country per 1,000 inhabitants) of 2.6, Mexico is the most advanced country in terms of its lodging market. Over the next decade, consistent business, tourism, and infrastructure investment will raise the hotel supply ratio to 3.8. Chile, widely regarded as one of the most stable economies in the region, is expected to see a 5.3% increase in supportable supply, bringing in an estimated 46,700 quality hotel rooms by 2025.
Colombia has also seen significant supply increases as a result of tourism, general economic growth, and special tax incentives. While the petroleum sector has suffered, Colombia is expected to attract consistent investment over the next decade as it continues to emerge as an appealing business and tourist destination. Peru has the highest growth rate among the profiled countries, with a high growth rate in quality lodging supply over the next decade, despite having a relatively small base of existing stock.
Latin America Construction Industry OverviewThe Latin America Construction Market is fairly fragmented, comprising local and regional players mainly, with few global players. The major players are Empresa ICA, S.A.B. de C.V., OAS S.A., IDEAL,S.A.B. de C.V., Cyrela Brazil Realty S.A., Andrade Gutierrez S.A., and many more. The rise in tourism is creating opportunities for the construction and development of hospitality infrastructure. Also, companies complying with the emerging policies in the region have opportunities to gain a good share of the market
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