DUBLIN--(BUSINESS WIRE)--The "India Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in India is expected to grow by 11.2% to reach INR 25.31 trillion in 2024. Despite near-term challenges in certain construction sectors, India's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 9.6% is projected during 2024-2028, with the country's construction output expected to reach INR 36.58 trillion by 2028, indicating substantial growth potential.
This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in India, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
The Indian construction industry is experiencing robust growth across both residential and commercial sectors, driven by government initiatives, increased demand, and the adoption of modern technologies. With significant contributions to GDP and employment, the sector is set to play a crucial role in India's economic advancement.
The Indian construction industry is a vital component of the nation's economy, contributing approximately 8% to the GDP and employing over 40 million people. It encompasses various sectors, including residential, commercial, industrial, and infrastructure construction, with a significant focus on infrastructure development driven by government initiatives like the National Infrastructure Pipeline and the Smart Cities Mission.
Recent trends indicate an increasing demand for housing and urban infrastructure due to rapid urbanization and population growth. The government has allocated significant resources to infrastructure projects to enhance connectivity and create world-class facilities. Embracing digital technologies and sustainable practices, the industry is set for significant growth. The construction sector is poised to play a crucial role in India's journey towards global economic leadership.
The Residential Construction Outlook
- Sustained Demand - Despite economic headwinds, the demand for residential properties has remained buoyant, supported by rising household incomes, low interest rates, and a growing urban population. In the first half of 2024, around 44,000 housing units were sold in Mumbai alone, with 158,705 residential properties sold across the city.
- Healthy Launches - Residential launches have remained comparatively high, with over 232,000 housing units launched in 2021 across India. Key cities like Mumbai, Hyderabad, and Delhi recorded significant increases in residential launches compared to 2020.
- Government Support - The government's flagship affordable housing program, Pradhan Mantri Awas Yojana (PMAY), continues to support the residential construction industry. In 2024, the government allocated 200 billion Indian rupees (USD 2.44 billion) for PMAY-Gramin.
- Divergent Pricing Trends - While overall pricing trends vary across different markets, the premium and luxury residential segments, priced at INR 2 crore and above, are expected to thrive as discerning buyers prioritize spacious accommodations with convenient access to essential support infrastructure.
The Commercial Construction Outlook
- Increasing Demand for Office Space - The demand for office spaces in India has increased due to growing corporate activity. The total flexible office space in major cities reached 43.5 million square feet, with a pan-India flexi space penetration of 6.3% in Grade A office stock.
- Government Initiatives and Foreign Investments - The government's focus on infrastructure development has triggered the demand for commercial real estate assets through projects like the National Infrastructure Pipeline and the Smart Cities Mission. The stable political environment has also instilled investor confidence, leading to massive investments by foreign and domestic investors in commercial real estate.
- Adoption of Modern Technologies - In recent years, the commercial construction sector has advanced significantly by incorporating modern machinery, sustainable materials, and innovative technologies like BIM and geospatial technologies, improving efficiency, quality, and sustainability in construction projects.
- Resilience and Growth Trajectory - The commercial construction sector has faced challenges but is showing resilience and poised for growth. It is adapting to trends like co-working spaces and a focus on health, wellness, and sustainability in office design.
The Institutional Construction Outlook
- In the past few months, India's institutional construction sector has grown due to increased government investment in education, healthcare, and research facilities. Initiatives like the Smart Cities Mission have led to the construction of educational and healthcare institutions, improving public services and urban infrastructure.
- The future of the institutional construction sector in India looks promising, with the government's continued focus on institutional projects aimed at enhancing accessibility and quality in education and healthcare. This positive outlook is further bolstered by the increasing role of private investments, which are expected to contribute significantly to the sector's sustained growth in the coming months.
The Infrastructure Construction Outlook
- In the last few months, India's infrastructure construction sector has seen strong growth, supported by increased government spending and major projects like roads, railways, and urban development. Public and private investments have increased due to initiatives such as the National Infrastructure Pipeline and the "Make in India" campaign aimed at enhancing the country's infrastructure capabilities.
- The outlook remains positive as ongoing regulatory reforms and technological advancements are expected to further boost efficiency and project execution. However, challenges such as rising material costs and geopolitical uncertainties could impact the pace of growth, necessitating careful monitoring of investment activities in the coming months.
Scope
Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028 in India. KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
India Economic Indicators
India Top Cities Construction Data
India 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)
India 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)
India 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
- Other commercial building construction
- Construction stage (new construction, re-development & maintenance)
India 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
India Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
- Manufacturing Plants building construction
- Chemical & Pharmaceutical building construction
- Metal & Material Processing building construction
- Construction stage (new construction, re-development & maintenance)
India Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Other building construction
- Construction stage (new construction, re-development & maintenance)
India 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
India 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)
India Green Infrastructure Construction: 10-year market size & forecast in value terms
India Construction Cost Structure Analysis: 10-year market size & forecast in value terms
- Cost Analysis by Type (Material, Labour, Equipment, Others)
- By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
- By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
- By Type of Construction (New, Re-Development)
- By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
- Type of Labour (Skilled vs. unskilled)
For more information about this report visit https://www.researchandmarkets.com/r/3ewibx
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