The global residential construction market experienced a decline during the past five years but is expected to recover and gain momentum, growing at a compound annual growth rate (CAGR) of 7% through to 2017, to reach a market value of US $2,943 billion by 2017.
The residential construction market consists of buildings intended for private occupancy: detached; semi-detached, duplex or row houses; apartments; cottages; and mobile homes.
Market growth looks set to be predominantly driven by regions such as China, Japan, India, and other Asian nations. Mortgage interest rates and net migration are likely to contribute considerably to the industry's growth.
The increase in GDP/capita in emerging economies, UAE government focus on growth of other sectors other than the oil industry to contribute in its economy, and government initiatives such as housing projects and affordable housing are all additional factors expected to drive growth within the global residential construction industry through to 2017.
The global residential construction market isn't quite in the clear just yet, the cancellation of a number of projects due to the impact of the global financial crisis, tightening of the credit and financing market, issues in project financing, material cost fluctuation, increase in number of foreclosures, and high fuel costs are set to continue to pose challenges in the market.
For more information on the global residential construction market, see the latest research: Global Residential Construction Market Report
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