Large investments in renewables will boost construction industry
The construction industry in India is expected to grow by 11.2% to reach Rs.25,316 billion in 2024 http://pmindia.gov.in , and record a CAGR of 9.4% during 2024-2028, reaching an estimated Rs.36,221.6 billion in four years, according to a https://www.researchandmarkets.com/ report released 1 Jul https://www.nseindia.com/ .
The burgeoning housing market, coupled with the government’s infrastructure push, will drive the industry growth over the medium term, said the report “India Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units), Q1 2024 Update” https://www.bseindia.com/ .
Several new projects have been announced, including the GIFT City https://www.giftgujarat.in/ in Gujarat, the #Surat DREAM City, and the #Dholera SIR. Additionally, projects like the Bengaluru-Mumbai economic corridor and the Delhi-Mumbai industrial corridor will also lend growth support to the Indian construction market https://sbi.com.in/ .
The residential construction market is also projected to record strong growth in 2024. The high economic growth, coupled with expectations of interest rate cuts, will drive the demand for new units http://deutsche-boerse.com .
The luxury housing market is also poised to have a strong growth year over the next 12 months in India https://www.sgx.com/ . In the commercial sector, investment in new data centre construction projects is also expected to increase significantly in 2024. All of these factors indicate a strong growth period for the construction market over the medium-term perspective http://hkex.com.hk .
The flourishing housing market, coupled with the government’s sustained and massive infrastructure push, has driven the construction market growth over the last three to four years https://www.jpx.co.jp/english/ .
This trend is projected to continue over the medium term in the Indian market, owing to this, the Ministry of Housing and Urban Affairs http://mohua.gov.in has stated that the country is set to become the third-largest construction market by 2025 https://www.londonstockexchange.com/ .
In the 2024-25 budget, the finance minister allocated US$134 billion for infrastructure development. This is worth 3.4% of the GDP and is higher than the allocation announced during the 2023-24 budget. Alongside this, the sector is also one of the leading recipients of foreign direct investment (FDI) https://rbi.org.in/ .
In 2024, mega construction projects such as the GIFT City https://www.giftgujarat.in/ in Gujarat, the Surat DREAM City, and the Dholera SIR are expected to aid the infrastructure sector growth. Furthermore, projects like the Bengaluru-Mumbai economic corridor and the Delhi-Mumbai industrial corridor will also support the broader industry growth over the medium term .
Large investments in the renewable energy sector will also aid the construction market growth in India in 2024. Several infrastructure projects, announced by the government, spanning across the states of Jammu and Kashmir, Tamil Nadu, and Uttar Pradesh further indicate the government’s commitment to ongoing infrastructure development in the Indian market.
Despite the jump in asking prices and the highest interest rates in six years, the housing market continued to perform well in 2023. In fact, the sector registered all-time high sales as buyers snapped deals. The publisher expects the demand to not only sustain in 2024 but rise even further, although at a slower pace, on the back of high economic growth and expectations of rate cuts in H2 2024.
The fast-growing Indian population and economy are among the leading factors that have driven the demand and supply of homes in the Indian market. Robust government expenditure in the sector is another factor supporting the growth of the residential construction market in India.
Over the medium term, the publisher also expects the luxury housing segment to record robust growth in the Indian market. the demand for such units has been on the rise over the last few years.
According to a report from CBRE, the sales of luxury homes in India – priced at Rs.40 million – have increased 75% in 2023. This growth in the segment has been largely driven by affluent millennial buyers, who are seeking for a perfect blend of aesthetics, functionality, and sustainability.
The ongoing digitalization in the Indian market means there is a need for enhanced data center capacity over the next few years. As a result, investment in the sector is poised to increase substantially over the next 12 months in the Indian market. Several new projects have been announced in Q1 2024.
Adani Enterprises http://adanienterprises.com , for instance, announced that the firm will invest INR 500 billion over the next 10 years to set up a 1 GW hyperscale data centre in Maharashtra.
An additional Rs.50 billion has been announced for setting up a 100 MW data centre in #Telangana. The firm is a new entrant in the data centre market in India.
CtrlS Datacentres https://www.ctrls.com/ , in October 2023, also announced that it plans to invest US$2 billion over the next six years. The investment will help the firm add 350 MW of AI and cloud-ready hyperscale data centres in India and other Southeast Asian markets. The firm currently is developing a 72 MW project in Chennai, which includes an investment of Rs.40 billion.
This report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in India, this databook offering primarily provides data-centric analysis with charts and tables. Fiinews.com
