Construction & Property Development

World - Construction costs drop in fourteen countries

Source: Engineering News-Record, 21 December 2009

According to the annual survey of international costs conducted by Gardiner & Theobald Inc., the global economic recession undercut construction costs worldwide. In Europe, 12 out of 20 countries reporting construction-cost figures for 2009 experienced deflation averaging 8.3%. Of the remaining eight European nations, construction inflation averaged a modest 2.2%.

Eastern Europe recorded largest price declines with building tender prices in 2009 falling 17% in Slovakia, 15% in both Croatia and the Czech Republic and 12% in Bulgaria. Among 13 countries in Asia, the Middle East, Africa and Latin America, which reported construction inflation numbers for both 2008 and 2009, costs increased an average of 8.6% last year but only rose 2.6% this year.

India - Construction growth stimulates construction chemicals market

Source: Penton Insight, 22 December 2009

India’s construction industry has been growing at 15% to 20% year on year, mainly on the strength of increased manufacturing activities, industrial growth, and heightened investments, especially by the government in infrastructure and real estate. Expanding construction businesses in the largely untapped rural areas are also expected to provide a huge thrust to the construction chemicals market.

In addition, the Indian government's decision to give 100% foreign direct investments in the real estate business has helped stimulate construction activities throughout the country. Although the recent economic downturn had bogged down the real estate business, this sector already is showing signs of recovery. This revival has given a shot in the arm for construction chemicals companies.

Australia - Public building projects to fuel construction work in 2010

Source: Australian Associated Press Financial News Wire, 24 December 2009

Despite Australia's construction companies fared better than expected in 2009, industry chiefs are predicting a bumpy ride ahead as the impact of the global financial crisis lingers. Privately-funded construction remain severely hamstrung by tough credit market conditions, which have limited access to debt funding, resulting in widespread project deferrals and delays.

While markets have since stabilised somewhat and the industry has benefitted from federal government stimulus packages, funding remains expensive. As a result, industry figureheads say public spending will drive construction growth in 2010, as privately-funded construction continues to stall with property developers and builders cautious about when credit markets will thaw.

Back to Construction & Property Development