India set for five year construction boom
India’s incredible construction boom will continue for at least another five years, according to research
Leading data analyst Timetric forecast the value of the industry would grow by the equivalent of 15.5 per cent per year from 2013 to 2017.
This is an even greater increase than the 15.1 compound annual growth rate seen from 2008 to 2012.
With economic growth rates of about 6 per cent widely forecast for 2013/14, India is on the hit list for practices seeking to escape the European economic malaise.
Timetrics report adds weight to this, forecasting the value of the industry at about £534billion in 2017.
Infrastructure construction, representing about a third of the industry in 2012, is predicted to grow by the equivalent of 17 per cent per year as the government invests heavily in energy, communications, rail and roads.
Commercial work, which accounted for a fifth of total construction output in 2012, is expected to grow at a CAGR of 15.1 per cent over the forecast period.
Commercial work will be boosted by healthy economic growth, a retail boom and rising disposable income, according to Timetric.
Industrial construction, which accounted for a similar proportion of the whole last year, is expected to grow at 15.4 per cent to 2017. The report says India will continue attracting international companies’ manufacturing operations.
Institutional work – including schools and hospitals – is expected to grow by 14.9 per cent to 2017 as the country moves to boost numbers of facilities.
Residential construction growth is expected to increase from a CAGR of 11.7 per cent in the last five years to one of 12.6 per cent to 2017. A rising population, urbanisation and increasing disposable income are driving this sector.
AJ reported earlier this year that while it offered high levels of work, India’s hugely ambitious clients and fiercely competitive local prices made the country a minefield for newcomers.