International construction market survey 2024

Our International construction market survey explores how the construction industry is performing, the challenges it faces and its future outlook. Now in its fifteenth year, the report brings together data, insights and experience for more than 91 global construction markets.

There are causes for optimism with consumer price inflation expected to fall across the globe this year, energy and commodity costs easing and the expectation of lower interest rates from central banks. 

Healthy investment is continuing in key sectors on a global scale, such as in industrial manufacturing, data centres, healthcare and life sciences, which will help to keep the wheels of growth turning. 

But with elections taking place in a number of major markets this year, this could throw up considerable uncertainties around future policies on funding, permit streamlining, supply of skills and international cooperation. Renewed volatility risks reigniting inflationary pressures. 

Against an uncertain political and economic backdrop, global construction presents a mixed picture. Despite the challenges, most markets have maintained steady activity levels over the past year, with indications that pipelines are now growing as investment confidence slowly starts to return. 

The rate of escalation in construction costs is showing signs of easing at the global level. On average, construction cost inflation is projected to settle to 3.3 percent globally this year, with all regions anticipating lower inflation compared with 2023. As build costs stabilise, this is increasing the viability of new projects. 

Construction labour costs have averaged a 4.6 percent rise globally over the past year, slightly below the levels observed between 2022 and 2023. Despite slowing escalation, 79 percent of international real estate markets report skills shortages as fresh investment drives up activity as markets emerge from a period of economic difficulty. Ongoing labour availability challenges could put hurdles in the way of construction price inflation falling.