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
Contractors | Nov 1, 2023
Nonresidential construction spending increases for the 16th straight month, in September 2023
National nonresidential construction spending increased 0.3% in September, 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 $1.1 trillion.
Market Data | Oct 23, 2023
New data finds that the majority of renters are cost-burdened
The most recent data derived from the 2022 Census American Community Survey reveals that the proportion of American renters facing housing cost burdens has reached its highest point since 2012, undoing the progress made in the ten years leading up to the pandemic.
Contractors | Oct 19, 2023
Crane Index indicates slowing private-sector construction
Private-sector construction in major North American cities is slowing, according to the latest RLB Crane Index. The number of tower cranes in use declined 10% since the first quarter of 2023. The index, compiled by consulting firm Rider Levett Bucknall (RLB), found that only two of 14 cities—Boston and Toronto—saw increased crane counts.
Market Data | Oct 2, 2023
Nonresidential construction spending rises 0.4% in August 2023, led by manufacturing and public works sectors
National nonresidential construction spending increased 0.4% in August, 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 $1.09 trillion.
Giants 400 | Sep 28, 2023
Top 100 University Building Construction Firms for 2023
Turner Construction, Whiting-Turner Contracting Co., STO Building Group, Suffolk Construction, and Skanska USA top BD+C's ranking of the nation's largest university sector contractors and construction management firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report. Note: This ranking includes revenue for all university/college-related buildings except student residence halls, sports/recreation facilities, laboratories, S+T-related buildings, parking facilities, and performing arts centers (revenue for those buildings are reported in their respective Giants 400 ranking).
Construction Costs | Sep 28, 2023
U.S. construction market moves toward building material price stabilization
The newly released Quarterly Construction Cost Insights Report for Q3 2023 from Gordian reveals material costs remain high compared to prior years, but there is a move towards price stabilization for building and construction materials after years of significant fluctuations. In this report, top industry experts from Gordian, as well as from Gilbane, McCarthy Building Companies, and DPR Construction weigh in on the overall trends seen for construction material costs, and offer innovative solutions to navigate this terrain.
Data Centers | Sep 21, 2023
North American data center construction rises 25% to record high in first half of 2023, driven by growth of artificial intelligence
CBRE’s latest North American Data Center Trends Report found there is 2,287.6 megawatts (MW) of data center supply currently under construction in primary markets, reaching a new all-time high with more than 70% already preleased.
Contractors | Sep 12, 2023
The average U.S. contractor has 9.2 months worth of construction work in the pipeline, as of August 2023
Associated Builders and Contractors' Construction Backlog Indicator declined to 9.2 months in August, down 0.1 month, according to an ABC member survey conducted from Aug. 21 to Sept. 6. The reading is 0.5 months above the August 2022 level.
Contractors | Sep 11, 2023
Construction industry skills shortage is contributing to project delays
Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.
Market Data | Sep 6, 2023
Far slower construction activity forecast in JLL’s Midyear update
The good news is that market data indicate total construction costs are leveling off.
