A total of 6,645 planned and ongoing construction projects by the world’s megacities, valued at US$4.2trn and fueled by the increase in population, are sparking interest in residential and infrastructural developments, according to GlobalData.
The United Nations predicts that, between 2016 and 2030, the percentage of the world's population living in cities with at least a million inhabitants is likely to grow from 23% to 27%, and the number of megacities is projected to increase from 31 to 41.
Following a recent assessment of project pipelines in major cities worldwide by GlobalData, a listing of 50 ‘Construction Mega Cities’, discovers they each have a pipeline of projects with an investment value above US$30bn.
The report states that Dubai tops the list with total project values amounting to US$374.2bn, just ahead of London in second place with US$328.7bn and Moscow in third with US$191.5bn. However, the Asia-Pacific region dominates the list, accounting for 25 of the 50 cities, and having a combined projects pipeline valued at US$1.7trn.
Yasmine Ghozzi, Economist at GlobalData, comments, “The ranking of Construction Mega Cities in the Gulf states shows they are spending the most on major development projects relative to the size of their populations. Dubai, for example, has a population of 3.2m, but it holds the top position in terms of the value of the construction mega-projects pipeline per capita.
“In addition, the number of people living in Doha has increased to 1.1m as the Gulf state recruits tens of thousands of workers to work on major infrastructure projects linked to the 2022 FIFA World Cup; their project pipeline valued at US$105.6bn.”
There are major differences among the 50 Construction Mega Cities in terms of the value of the project pipelines compared to the size of the economies. Visakhapatnam, one of India's largest ports and an important industrial town and seaside resort, tops the ranking primarily owing to the government’s push on infrastructure and affordable housing.
Ghozzi continues, “The two main cities in Vietnam, Hanoi and Ho Chi Minh City, also feature in the top 10 ranking of cities in terms of the value of the project pipeline in relation to the city’s economy. Ho Chi Minh City’s economy recorded high economic growth in the first six months of 2018, with the construction industry recording growth of 7.7%. The city is expected to grow by around 8.8% a year, ahead of Hanoi (8%) and many other major cities in the region – outside of China and India – between 2018 and 2022.”
Related Stories
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Market Data | Apr 16, 2024
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of March 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.2 months in March from 8.1 months in February, according to an ABC member survey conducted March 20 to April 3. The reading is down 0.5 months from March 2023.
K-12 Schools | Apr 10, 2024
Surprise, surprise: Students excel in modernized K-12 school buildings
Too many of the nation’s school districts are having to make it work with less-than-ideal educational facilities. But at what cost to student performance and staff satisfaction?
Multifamily Housing | Apr 9, 2024
March reports record gains in multifamily rent growth in 20 months
Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
Retail Centers | Apr 4, 2024
Retail design trends: Consumers are looking for wellness in where they shop
Consumers are making lifestyle choices with wellness in mind, which ignites in them a feeling of purpose and a sense of motivation. That’s the conclusion that the architecture and design firm MG2 draws from a survey of 1,182 U.S. adult consumers the firm conducted last December about retail design and what consumers want in healthier shopping experiences.
Market Data | Apr 1, 2024
Nonresidential construction spending dips 1.0% in February, reaches $1.179 trillion
National nonresidential construction spending declined 1.0% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.179 trillion.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
K-12 Schools | Mar 18, 2024
New study shows connections between K-12 school modernizations, improved test scores, graduation rates
Conducted by Drexel University in conjunction with Perkins Eastman, the research study reveals K-12 school modernizations significantly impact key educational indicators, including test scores, graduation rates, and enrollment over time.
MFPRO+ News | Mar 16, 2024
Multifamily rents stable heading into spring 2024
National asking multifamily rents posted their first increase in over seven months in February. The average U.S. asking rent rose $1 to $1,713 in February 2024, up 0.6% year-over-year.
Market Data | Mar 14, 2024
Download BD+C's March 2024 Market Intelligence Report
U.S. construction spending on buildings-related work rose 1.4% in January, but project teams continue to face headwinds related to inflation, interest rates, and supply chain issues, according to Building Design+Construction's March 2024 Market Intelligence Report (free PDF download).
