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
Market Data | Jul 21, 2021
Architecture Billings Index robust growth continues
AIA’s Architecture Billings Index (ABI) score for June remained at an elevated level of 57.1.
Market Data | Jul 20, 2021
Multifamily proposal activity maintains sizzling pace in Q2
Condos hit record high as all multifamily properties benefit from recovery.
Market Data | Jul 19, 2021
Construction employment trails pre-pandemic level in 39 states
Supply chain challenges, rising materials prices undermine demand.
Market Data | Jul 15, 2021
Producer prices for construction materials and services soar 26% over 12 months
Contractors cope with supply hitches, weak demand.
Market Data | Jul 13, 2021
ABC’s Construction Backlog Indicator and Contractor Confidence Index rise in June
ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels increased modestly in June.
Market Data | Jul 8, 2021
Encouraging construction cost trends are emerging
In its latest quarterly report, Rider Levett Bucknall states that contractors’ most critical choice will be selecting which building sectors to target.
Multifamily Housing | Jul 7, 2021
Make sure to get your multifamily amenities mix right
One of the hardest decisions multifamily developers and their design teams have to make is what mix of amenities they’re going to put into each project. A lot of squiggly factors go into that decision: the type of community, the geographic market, local recreation preferences, climate/weather conditions, physical parameters, and of course the budget. The permutations are mind-boggling.
Market Data | Jul 7, 2021
Construction employment declines by 7,000 in June
Nonresidential firms struggle to find workers and materials to complete projects.
Market Data | Jun 30, 2021
Construction employment in May trails pre-covid levels in 91 metro areas
Firms struggle to cope with materials, labor challenges.
Market Data | Jun 23, 2021
Construction employment declines in 40 states between April and May
Soaring material costs, supply-chain disruptions impede recovery.