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 increased the cost of materials.

The demand for structures with low greenhouse gas emissions – ideally both during as well as after its construction – has increased as climate change concerns have kept growing. Whilst there is no unified global approach to how to best construct this type of building, its market size has been growing, with the building efficiency market being valued at roughly 391 billion U.S. dollars in 2022. In addition to having a smaller carbon footprint, green buildings also help reduce operational 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, where residential is just one of the segments that major players are focused on. France’s Vinci –Europe’s largest construction company– is active in several branches of the industry, not just residential.

The heating, ventilation, and air conditioning (HVAC) market has become increasingly relevant in the past years. Increasing global temperatures with more extreme weather patterns are a driver of this development. Some countries, such as the U.S. use these systems quite extensively, while others could follow soon. The German HVAC market, for example, has grown significantly in the last decade.