Emerging Markets to Lead Race For Top Positions in Global Construction

11/12/2009 22:35

London – November 12, 2009 – New global construction forecasts released today by Global Construction Perspectives and Oxford Economics indicate that the output of the construction sector is likely to rise sharply over the next decade driven by emerging markets China, India and Brazil. The comprehensive report Global Construction 2020, which looks at the prospects for construction for most major markets worldwide over the next decade, includes a contribution from RICS on the growing importance of sustainability in construction using the results of the RICS green gauge survey, and was launched today by Max Crofts, RICS President. Speaking at the launch of the research in London today, RICS President Max Crofts commented: “This is an important global report that the RICS is pleased to support. Global Construction 2020 provides the industry with a unique set of forecasts and a clear view of the medium-term time horizon for global construction markets. “The RICS has an international network of offices in these key markets supporting our role in promoting best practice in all parts of the global construction and property markets. “The forecasts show very clearly how world markets will develop and those that will provide the best opportunities for the profession over the next decade.” Simon Rubinsohn, RICS Chief Economist, who has been closely involved with the team from Global Construction Perspectives and Oxford Economics, commented: “These forecasts show a strongly emerging global construction market worth $7.5 trillion today, but one that Global Construction Perspectives and Oxford Economics forecast will rise to $12.7 trillion by 2020. “The predicted sharp increases in construction levels will be a reflection of the strength of the markets in emerging economies such as India, Brazil and China, who are set to double output over the next decade. Although developed areas in general are likely to see relatively modest growth, the US may be something of an exception. The forecasts suggest that US construction output will in particular benefit from a rebound in residential building.” He added that “the results demonstrate the increasing importance of emerging markets, not just in regard of the future trend in construction output but also with respect to economic activity more generally. Countries such as China and India will inevitable become more important players on the world stage in the coming years.” Stephen Brown, RICS Head of Research, who has contributed an Expert Box to the report, revealing for the first time RICS member views globally on sustainability, said “Sustainability is increasingly going to have an influence on global economic growth and construction activity. The latest Green Gauge survey carried out by RICS indicated that over two thirds of construction professionals in the surveying profession believed that it was an increasingly important issue. As emerging markets grow rapidly it will be vital that environmental practices are embedded and RICS will to continue to guide our members and track attitudes over the next decade.” RICS will use the forecasts in its work to advise government and other policy makers on key construction and property matters worldwide. See the executive summary document here. Notes for editors: Global Construction 2020 is a report about the global construction industry to 2020. It provides ten-year forecasts of growth in 35 key construction markets globally and gives forecasts for the global construction market, key regional markets and for key sectors such as infrastructure construction, residential and non-residential building construction. The report and its associated database has been jointly written and prepared by an expert team from Global Construction Perspectives and Oxford Economics. More information on Global Construction 2020 and database can be found at www.globalconstruction2020.com About RICS RICS is the world’s leading qualification when it comes to professional standards in land, property and construction. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism. Over 100 000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members. RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector. About Global Construction Perspectives Global Construction Perspectives produces detailed global forecasts of the construction industry providing accurate and valuable analysis and evidence on the future of the sector. Reports such as Global Construction 2020 help senior executives within the construction sector make the right decisions about future strategy and direction. Global Construction Perspectives works with Oxford Economics to produce high quality forecasts for the global construction sector. Global Construction Perspectives publishes reports on issues of strategic interest to the global construction sector and undertakes strategy and management consulting. Staff and consultants at Global Construction Perspectives have a wide range and depth of skills and a wide understanding of current and future trends in global construction. About Oxford Economics Oxford Economics was founded in 1981 as a commercial venture with Oxford University's business college to provide economic advice, forecasts and analytical tools to international institutions, governments and blue-chip companies. Building on these foundations, Oxford Economics is now an independently-owned world-leader in high quality, quantitative analysis and evidence-based business and public policy advice. Combining skilled analysis with detailed information on the global economic environment creates a firm base for decisions. Oxford Economics operates a linked global macroeconomic model that drives a global industry model, from which construction forecasts are derived. This ensures complete consistency between the broad economic outlook and the prospects for the construction industry worldwide. For more information: Claire Barratt RICS Press Officer T +44 (0)20 7334 3736 M +44 (0)7976 554635 E cbarratt@rics.org W www.rics.org/press RICS - The mark of property professionalism worldwide NEW YORK • LONDON • BRUSSELS • DUBAI • NEW DELHI • HONG KONG • BEIJING • SYDNEY