Date 03 December 2009

According to a report by London’s Global Construction Perspectives and Oxford Economics, China will be the world’s largest construction market by 2018, surpassing the US and outpacing India by four times. Total Chinese market value will reach $2.4 trillion in the next ten years alone. In this time, China will have the third largest growth rate in this sector, where it leads other emerging markets, who are in the process of building both residential housing and large-scale infrastructure. During this time infrastructure construction market will grow globally by 128%, far higher than the rate in developed countries.

Large-scale projects in China, namely the 2008 Beijing Olympics, the 2010 Shanghai World Trade Expo, and the Three Gorges Project have already done much to jump start investment in the nation’s construction industry. In addition to these governmental plans, rising urbanization, development programs for poorer areas of China, and other public projects all contribute to a rapidly growing investment environment for private investors. For example, authorities recently announced plans to add over 50,000 km to Western Chinese railway developments by 2020 as part of their overall development plan for this region.

To provide the massive funding required for all such projects, the government encourages foreign and domestic private enterprises’ involvement in this area. The creation of projects such as economic development zones and other incentives will greatly increase the facility with which companies can get involved. By the end of 2008, the expected market value will be US $460 billion, with promises of impressive growth for years to come.