Building Construction

The construction cost of an industrial building can vary significantly from city to city. These differences depend on several factors, like the price of land, the availability and price of materials, or the average salary. However, other developments can also affect these costs. During the early years of the COVID-19 pandemic, there was an increased demand for logistics which brought more attention to warehouse construction. More recently, inflation has had increased the cost of materials.

The demand for structures with low greenhouse gas emissions – ideally both during as well after its construction – increased as climate change concerns grew. Whilst there is no unified global approach to how to best construct this type of building, it is believed its market size would more than double in six years’ time. In addition to having a smaller carbon footprint, green buildings also help reduce operational and maintenance costs.

The home construction segment plays a big role in most countries, but its structure can vary from region to region. In the U.S., for instance, construction companies like Lennar Corp and D.R. Horton are specialized in the construction of residential property. This is unlike Europe, though, where residential is but one part found within a larger company. France’s Vinci – Europe’s largest construction company – has several construction activities within several branches, not just residential.

(changes in red) The heating, ventilation, and air conditioning (HVAC) market has become increasingly relevant in the past years. Increasing global temperatures are a driver of this development, alongside an increasing demand for this kind of equipment. Some countries, such as China, the U.S. or Italy, already use these systems extensively. Others could follow soon, the German HVAC market, for example, has grown significantly in the last decade.