South Africa Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q4 2024)

The Construction in South Africa - Key Trends and Opportunities to 2028 (Q4 2024) report provides detailed market analysis, information and insights into the South African construction industry, including:

The South African construction industry's growth prospects by market, project type and construction activity
Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South African construction industry
Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

The construction industry in South Africa is expected to contract further, by 5% in real terms in 2024 and 0.5% in 2025, owing to headwinds such as weak economic activity, high construction costs, coupled with subdued residential buildings and civil construction activities. According to the Statistics South Africa (Stats SA), the average construction materials price index rose by 6.5% year on year (YoY) in the first ten months of 2024, preceded by annual growth of 6.6% in 2023. Furthermore, the average construction materials price index for civil engineering rose by 6% in the first ten months of 2024, preceded by annual growth of 4.4% in 2023.

The analyst expects South Africa’s construction industry to rebound over the remainder of the forecast period and record average annual growth of 3.5% from 2026 to 2028, supported by public and private sector investments in infrastructure and energy projects. The industry’s growth will also be supported by the national target to increase the share of renewable energy to 50% of the total energy mix, and reach net zero carbon emissions by 2050. In line with this, in September 2024, the European Investment Bank (EIB) and FirstRand Bank Ltd - a domestic bank holding company - announced a joint venture, investing ZAR7.4 billion ($400 million) in renewable energy projects. This investment will be used in various construction projects such as photovoltaic and wind energy, and energy-efficiency projects. Furthermore, in September 2024, Terra Firma - a South African independent power producer (IPP) - announced plans to construct a new ZAR1.3 billion ($70 million) solar plant with an installed capacity of 110MW.

Scope

This report provides a comprehensive analysis of the construction industry in South Africa. It provides:

Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in South Africa, featuring details of key growth drivers.
Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
Assess market growth potential at a micro-level with over 600 time-series data forecasts
Understand the latest industry and market trends
Formulate and validate business strategies using the analyst's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: South Africa, Key Economic Indicators
Table 3: South Africa, Commercial Construction Output by Project Type (Real % Change), 2019-28
Table 4: South Africa, Top Commercial Construction Projects by Value
Table 5: South Africa, Industrial Construction Output by Project Type (Real % Change), 2019-28
Table 6: South Africa, Top Industrial Construction Projects by Value
Table 7: South Africa, Infrastructure Construction Output by Project Type (Real % Change), 2019-28
Table 8: South Africa, Top Infrastructure Construction Projects by Value
Table 9: South Africa, Energy and Utilities Construction Output by Project Type (Real % Change), 2019-28
Table 10: South Africa, Top Energy and Utilities Construction Projects by Value
Table 11: South Africa, Institutional Construction Output by Project Type (Real % Change), 2019-28
Table 12: South Africa, Top Institutional Construction Projects by Value
Table 13: South Africa, Residential Construction Output by Project Type (Real % Change), 2019-28
Table 14: South Africa, Top Residential Construction Projects by Value
Table 15: South Africa, Key Contractors
Table 16: South Africa, Key Consultants
Table 17: South Africa, Construction Output Value (Real, $ Million)
Table 18: South Africa, Construction Output Value (Nominal, ZAR Million)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2022-28
Figure 2: South Africa, Construction Output by Sector (Real % Change), 2022-24 and 2025-28
Figure 3: South Africa, Risk Summary
Figure 4: South Africa, Risk Regional Comparison
Figure 5: South Africa, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019-28
Figure 6: South Africa, Construction Output Value, by Sector (Real, $ Million), 2019-28
Figure 7: South Africa, Construction Value-add (ZAR Billion, Constant 2015 Prices)
Figure 8: South Africa, Gross Fixed Capital Formation (ZAR Billion, Constant 2015 Prices)
Figure 9: South Africa, Employment in the Construction Industry (In Thousands)
Figure 10: South Africa, Total value of recorded building plans passed by larger municipalities, 2019 Constant Prices (ZAR Million)
Figure 11: South Africa, Value of Buildings Reported as Completed in Larger Municipalities, 2019 Constant Prices (ZAR Million)
Figure 12: South Africa, Construction Materials Price Index, Total Construction, December 2023=100
Figure 13: South Africa, Construction Projects Momentum Index
Figure 14: Sub-Saharan Africa, Construction Projects Momentum Index
Figure 15: South Africa, Commercial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 16: South Africa, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 17: South Africa, Total Value of Building Plans Passed for Office and Banking Space and Shopping Space, Current Prices (ZAR Million)
Figure 18: South Africa, Total Value of Building Plans for Office and Banking Space and Shopping Space Reported as Completed, Current Prices (ZAR Million)
Figure 19: South Africa, Income from Accommodation and Food Services (ZAR Million, Current Prices)
Figure 20: South Africa, Total Retail and Wholesale Trade Sales (Constant 2019 Prices, ZAR Billion)
Figure 21: South Africa, Industrial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 22: South Africa, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 23: South Africa, Manufacturing Value-add (ZAR Billion, Constant 2015 Prices)
Figure 24: South Africa, Total Value of Industrial and Warehouse Space Plans Passed, Current Prices (ZAR Million)
Figure 25: South Africa, Volume Index of Manufacturing Production (2019=100)
Figure 26: South Africa, Absa Purchasing Managers’ Index (PMI), Business Activity Index and New Sales Orders Index, Seasonally Adjusted
Figure 27: South Africa, Total Merchandise Exports (ZAR Billion)
Figure 28: South Africa, Volume Index of Mining Production (2019=100) and Mineral Sales (Current Prices, ZAR Billion)
Figure 29: South Africa, Infrastructure Construction Output by Project Type (Real, $ Million), 2019-28
Figure 30: South Africa, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: South Africa, Construction Materials Price Index, Civil Engineering Construction, December 2023=100
Figure 32: South Africa, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019-28
Figure 33: South Africa, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: South Africa, Electricity, Gas and Water Value-add (ZAR Billion, Constant 2015 Prices)
Figure 35: South Africa, Electricity Production (GWh)
Figure 36: South Africa, Institutional Construction Output by Project Type (Real, $ Million), 2019-28
Figure 37: South Africa, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 38: South Africa, Residential Construction Output by Project Type (Real, $ Million), 2019-28
Figure 39: South Africa, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 40: South Africa, Real Estate Value-add (ZAR Billion, Constant 2015 Prices)
Figure 41: South Africa, Gross Fixed Capital Formation Residential (ZAR Billion, Constant 2015 Prices)
Figure 42: South Africa, Total Value of Residential Building Plans Passed, 2019 Constant Prices (ZAR Million)
Figure 43: South Africa, Total Value of Residential Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)
Figure 44: South Africa, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 45: South Africa, Headquarters of Key Consultants (% of Total Project Pipeline)

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Scope

This report provides a comprehensive analysis of the construction industry in South Africa. It provides:

Reasons to Buy

Table of Contents

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