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Construction in Argentina - Key Trends and Opportunities to 2025

  • ID: 5240547
  • Report
  • January 2021
  • Region: Argentina
  • 47 Pages
  • GlobalData
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Summary

Argentina’s construction industry is estimated to have dropped by -31.5% in 2020, and contract further by 5% in 2021, before recovering to 2.1% in the remaining part of the forecast period (2022-2025). Although the industry has been gradually recovering in recent months, as the government continues to push forward its reopening plan to kickstart the economy - and news of the rollout of vaccines present optimism to the short-term outlook - the level of investment in construction will likely not be enough to pull the industry out of recession this year.

Lingering macroeconomic imbalances (including weak economic activity, a falling peso, and high levels of unemployment) are expected to continue to hold back private investment in infrastructure projects and other buildings and hinder the recovery of the industry in the coming months. Furthermore, the number of Coronavirus (COVID-19) cases is again accelerating across the country, which could lead to a possible retightening of COVID-19 lockdown measures, while the potential of more government market-unfriendly policies - which could have implications in the country’s economy and fiscal position ahead of the legislative election in October - pose additional downside risks to the industry’s short-term outlook.

Argentina now has the third highest number of COVID-19 cases in Latin America, after Brazil and Colombia, and the third highest number of fatalities after Brazil and Mexico. According to Johns Hopkins University, Argentina had 1,744,704 confirmed cases of COVID-19 and 44,848 fatalities as of January 13th. Despite implementing early and strict lockdown measures in late March last year, which initially helped slow the spread of the virus, this did not prevent the country from recording one of the highest numbers of COVID-19 deaths per capita in Latin America.

Although the gradual ease of lockdown measures in many parts of the country has contributed to the slight improvement in activity in the industry in recent months, the continued rise in COVID-19 cases and worsening economic conditions have made it more difficult for construction companies to restart their operations, with many projects facing further delays or being temporarily cancelled due to the heightened uncertainty over the economy and duration of the virus. The latest figures from the National Institute of Statistics and Census (INDEC) indicated that Argentina’s construction industry continued to decline sharply in the third quarter of 2020, albeit at a slower rate than in the previous quarter, posting a year-on-year (Y-o-Y) decrease of 27% in Q3 2020, compared -51.9% in Q2 2020 and -19.7% in Q1 2020. On a quarter-on-quarter (Q-o-Q) basis, however, the industry rose by 52.1%, compared to a decline of 39.4% in the previous quarter.

This report provides detailed market analysis, information, and insights Argentina’s construction industry, including -
  • Argentina’s construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Argentina’s construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Argentina. It provides -
  • Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Argentina, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy, and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using the publisher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Note: Product cover images may vary from those shown
1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status

4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction

5 Key Industry Participants
5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 Construction

List of Tables
Table 1: Construction Industry Key Data
Table 2: Argentina, Key Economic Indicators
Table 3: Argentina, Commercial Construction Output by Project Type (real % change), 2016-2025
Table 4: Argentina, Top Commercial Construction Projects by Value
Table 5: Argentina, Industrial Construction Output by Project Type (real % change), 2016-2025
Table 6: Argentina, Top Industrial Construction Projects by Value
Table 7: Argentina, Infrastructure Construction Output by Project Type (real % change), 2016-2025
Table 8: Argentina, Top Infrastructure Construction Projects by Value
Table 9: Argentina, Energy and Utilities Construction Output by Project Type (real % change), 2016-2025
Table 10: Argentina, Top Energy and Utilities Construction Projects by Value
Table 11: Argentina, Institutional Construction Output by Project Type (real % change), 2016-2025
Table 12: Argentina, Top Institutional Construction Projects by Value
Table 13: Argentina, Residential Construction Output by Project Type (real % change), 2016-2025
Table 14: Argentina, Top Residential Construction Projects by Value
Table 15: Argentina, Key Contractors
Table 16: Argentina, Key Consultants
Table 17: Argentina, Construction Output Value (Real, US$ Million)
Table 18: Argentina, Construction Output Value (Nominal, ARS Billion)
Table 19: Construction Market Definitions

List of Figures
Figure 1: South and Central America, Construction Output (real % change), 2020 and 2021
Figure 2: Argentina, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Argentina, COVID-19 Confirmed Cases
Figure 4: Argentina, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2016-2025
Figure 5: Argentina, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 6: Argentina, Construction Value-Add (ARS Million, 2004 Constant Prices)
Figure 7: Argentina, Synthetic Indicator of Construction Activity (2004=100)
Figure 8: Argentina, Total area authorized for building permits (Thousand m2)
Figure 9: Argentina, Gross fixed Capital Formation (ARS Million, 2004 Constant Prices)
Figure 10: Argentina, Construction Projects Momentum Index
Figure 11: Argentina, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 12: Argentina, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 13: Argentina, Total Foreign Tourist Arrivals (In thousands)
Figure 14: Argentina, Hotels and Restaurants Value-Add (ARS Million, 2004 Constant Prices)
Figure 15: Argentina, Total Retail Sales (ARS Million, December 2016 Constant Prices)
Figure 16: Argentina, Wholesale and Retail Trade Value-Add (ARS Million, 2004 Constant Prices)
Figure 17: Argentina, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 18: Argentina, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 19: Argentina, Total Export Value (US$ Million)
Figure 20: Argentina, Manufacturing Production Index (2004=100)
Figure 21: Argentina, Manufacturing Value-Add (ARS Million, 2004 Constant Prices)
Figure 22: Argentina, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 23: Argentina, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: Argentina, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 25: Argentina, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 26: Argentina, Net Electricity Generation (GWh)
Figure 27: Argentina, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 28: Argentina, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: Argentina, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: Argentina, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Argentina, Real Estate Value-Add (ARS Million, 2004 Constant Prices)
Figure 32: Argentina, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 33: Argentina, Headquarters of Key Consultants (% of Total Project Pipeline)
Note: Product cover images may vary from those shown