Market Trends of europe construction repair and rehabilitation chemicals Industry
Rising commercial construction projects in countries, such as Italy, Spain, and others, will boost the commercial sector
- In 2022, the commercial floor area in Europe saw a 1.88% uptick from the previous year, driven by heightened demand for properties like offices, hotels, and retail malls. This growth continued into 2023, with Europe witnessing a volume increase of around 1.2 billion sq. ft. This surge was primarily fueled by a rise in foreign direct investment (FDI), necessitating the development of new offices, warehouses, and retail spaces.
- The commercial sector in Europe saw a 1.70% expansion in its floor area in 2021, building on the momentum from 2020. This growth was propelled by the sector's digitalization efforts and a surge in foreign investments. Notably, foreign investments in European commercial real estate reached EUR 273 billion in 2021, marking a 15% increase from the previous year. Germany's office real estate market also witnessed a notable uptick, with transactions amounting to EUR 30.5 billion, an 11% rise from 2020.
- Looking ahead, the commercial construction sector in Europe is poised for significant growth, with the existing floor area projected to achieve a CAGR of 2.02% during the forecast period. Noteworthy projects, such as the Milan US Consulate General Complex in Italy, are set to be completed by 2025 with a planned investment of USD 65 million. The Arteixo Office Building Expansion in Spain, spanning 1.8 million sq. ft, valued at USD 260 million, slated for operation in 2024, is set to bolster the commercial construction landscape. Furthermore, as European consumers increasingly favor brick-and-mortar retail experiences, the construction of retail shopping malls is expected to surge. By 2030, the existing floor area is projected to expand by 10.44 billion sq. ft, a significant jump from 2022.
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The increase in the demand for housing units and government investments in housing are likely to boost the residential sector
- In 2022, the residential floor area in Europe saw a 1.43% volume increase from the previous year. This growth can be attributed to the rising urbanization rate, as the urban population reached 75% of the total population, up from 73.5% in 2021. This trend is expected to persist in 2023, with a projected growth of 1.68% in the residential floor area. Additionally, Europe is set to witness a 2.7% rise in housing project completions in 2023, with notable growth in Hungary, Ireland, Norway, and Poland.
- Between 2018 and 2021, Europe witnessed a 4.02% increase in its residential floor area. In 2021 alone, the region added approximately 4.5 billion sq. ft of residential floor area, driven by a surge in housing demand. For instance, France saw a .025% rise in standalone houses and a 1.23% increase in collective housing units in 2021, compared to the previous year.
- Europe's residential floor area is projected to grow, registering a CAGR of 1.58% during the forecast period. This growth is fueled by sustained housing demand, increased investments, and supportive government policies. Notably, initiatives like the UK's Affordable Homes Programme, backed by an USD 8 billion investment, aim to deliver 130,000 housing units by 2026. Moreover, Europe is expected to invest approximately EUR 2.5 billion in residential dwelling renovations by 2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing public-private investments in clean energy power plants are likely to expedite the new existing area for industrial construction in Europe
