We spend a lot of time researching and analysing global construction markets to understand where the opportunities are for our clients. Everyone has their own criteria as to which markets are right for them, but we've selected a few to highlight below from the dozens that we have researched that have captured our interest for the start of the new (hopefully) "roaring 20's":
Canada – While their neighbour to the south is expected to experience slowing growth into next year, Canada is going through a bit of a boom right now, and construction is very active in key cities such as Vancouver, Toronto, Calgary and Edmonton. Infrastructure and mixed use are both active sectors, and PPP continues to increase as a favoured procurement method for large-scale public projects.
Colombia – A healthy economy and increasing GDP growth forecast (3.6% for 2020, up from 3.5% expected in 2019 and 2.7% in 2018) bodes well for Colombia's future, and there is strong activity in a number of sectors such as rail, air and hospitality/tourism. Public sector funding has increased for higher education, hospitals and prisons, with plans to use PPP for the latter two.
Spain – Investor confidence continues to grow in this market; good quality offices and residential are in short supply in major cities such as Madrid and Barcelona, as well as coastal cities like Valencia and Malaga. There is also continued growth in demand for logistics/industrial and data centres, serving growing e-commerce and tech industries.
Oman – The Sultanate’s strong economic diversification plans, with the ultimate goal of promoting development and competitiveness through increased government spending on key non-oil sectors and stimulating private investments, is expected to lead to a 6% year-on-year growth in construction over the next five years. International players are already active in the market, and more are expected. Active sectors include commercial, residential, industrial, transportation and energy & utilities.
Philippines – Like him or not, President Duterte's "Build, Build, Build" mantra has taken hold, and investors are responding in kind. The Philippines is a very active construction market across all major sectors including office, retail, hospitality, infrastructure (air and rail) and institutional (education and health). Another year of more than 6% expected growth should continue to prop up the industry.
Vietnam – At 6.6% GDP growth this year and 6.5% forecast for each of the next two years, Vietnam continues to be a rising star among the Asian economies. The economic reforms undertaken by the government have transformed the country into one of the fastest growing economies in the world, and construction is expected to continue its 8%-plus year-on-year growth for the next several years. Hospitality & tourism is a key driver, alongside continued growth in infrastructure, education, healthcare, manufacturing and technology sectors.
Australia – Like Canada, Oz is going through a bit of a boom, with its population trending toward 25% growth between now and 2050, and Melbourne set to become larger than Sydney. Infrastructure improvements abound, and a funded forward pipeline of rail, airport and utility work is visible. Private sector investment in commercial, residential, logistics and technology should keep pace, although an acute skills shortage across design and construction may lead to issues with slower delivery and rising costs.