Argentina Construction Industry Databook Report 2024: Output to Grow by 8.8% this Year - Economic Challenges, Government Infrastructure Investments, PPP Growth - Forecast to 2028 - ResearchAndMarkets.com

The "Argentina Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Argentina is expected to grow by 8.8% to reach ARS 7.75 trillion in 2024. Despite near-term challenges in certain construction sectors, Argentina's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 7.4% is projected during 2024-2028, with the country's construction output expected to reach ARS 10.32 trillion by 2028, indicating substantial growth potential.

This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in Argentina, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

The construction industry in Argentina is at a critical juncture, characterized by economic challenges and opportunities for growth. While the sector faces high inflation and rising costs, significant government investments in infrastructure and housing present avenues for recovery. Senior executives should leverage these opportunities while adapting to the evolving market dynamics. By embracing innovative practices, fostering public-private partnerships, and aligning with government initiatives, stakeholders can successfully navigate the complexities of Argentina's construction landscape and contribute to the country's long-term development.

The construction industry in Argentina is navigating a complex landscape marked by economic challenges, government initiatives, and a pressing need for infrastructure development.

• Economic Challenges Impacting Growth: The construction industry in Argentina is projected to decline by 2.8% in 2024, following a growth of 30.8% in 2021 and a subsequent slowdown. Factors contributing to this decline include high inflation, rising interest rates, and a depreciating currency, which have created an uncertain investment environment. The government's inability to pass a budget in late 2021 has further strained funding for construction projects.
• Government Infrastructure Investment Plans: The Argentine government has announced an investment of ARS 10.6 trillion (approximately USD 91 billion) for executing over 3,131 new infrastructure works as part of the Plan Argentina Hace. This plan aims to stimulate the economy and improve essential services, focusing on transportation, energy, and public facilities.
• Public-Private Partnerships (PPP) Growth: The government is increasingly relying on public-private partnerships to fund infrastructure projects. The recent Memorandum of Understanding (MoU) signed with China under the Belt and Road Initiative is expected to enhance cooperation in infrastructure development, particularly in hydropower and rail projects.

Residential Construction: Addressing Housing Deficits

• Focus on Affordable Housing: The residential construction sector is under pressure to address a significant housing deficit. The government aims to construct one million homes by 2030. Initiatives like Procrear are designed to facilitate access to affordable housing, but economic constraints hinder progress.
• Decline in New Housing Starts: The New housing permits have decreased significantly, reflecting reduced demand amid economic uncertainty. The residential sector is expected to face challenges in maintaining growth due to high construction costs and limited access to financing.

Commercial Construction: Adapting to Market Dynamics

• Investment in Commercial Spaces: The commercial construction sector is gradually recovering, driven by investments in office spaces, retail developments, and mixed-use projects. An uptick in consumer spending and the growth of e-commerce support the demand for commercial real estate.
• Emergence of Green Building Practices: There is a growing trend towards sustainable commercial construction, with developers increasingly adopting green building standards to meet regulatory requirements and consumer expectations. This shift is crucial for aligning with global sustainability goals.

Institutional Construction: Enhancing Public Services

• Increased Spending on Education and Healthcare: The government is prioritizing investments in educational and healthcare facilities to improve public services. Significant funding is being directed towards constructing and renovating schools and hospitals, addressing the needs of a growing population.
• Focus on Disaster Resilience: Given Argentina's vulnerability to natural disasters, institutional projects incorporate resilience measures into their designs. This focus on disaster preparedness ensures the continuity of essential public services and enhances community safety.

Industrial Construction: Supporting Economic Growth

• Expansion of Manufacturing Facilities: The industrial construction sector is experiencing growth driven by increased manufacturing and logistics facilities demand. The government's initiatives to boost local production capabilities and reduce reliance on imports are fuelling investments in this area.
• Investment in Renewable Energy Infrastructure: Argentina is investing significantly in renewable energy projects, particularly wind and solar power. The government aims to increase its renewable energy capacity, requiring extensive industrial construction efforts.

Infrastructure Construction: Building for the Future

• Major Infrastructure Projects Underway: Infrastructure construction remains a cornerstone of Argentina's development strategy. Projects such as constructing new bridges, road expansions, and railway improvements are ongoing. These projects are crucial for enhancing connectivity and supporting economic growth.
• Focus on Transportation Networks: The government is prioritizing the development of transportation infrastructure, including roads, railways, and ports, to facilitate trade and improve logistics. Investments in transportation networks are essential for boosting the country's economic competitiveness.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028 in Argentina. KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Argentina Construction Cost Structure Analysis: 10-year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

Argentina Economic Indicators

Argentina Top Cities Construction Data

Argentina Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Argentina Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Argentina Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Argentina Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Argentina Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Argentina Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Argentina Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

Argentina Infrastructure Construction Sectors: 10-year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Argentina Green Infrastructure Construction: 10-year market size & forecast in value terms

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