Argentina Construction Industry Market Size & Forecast - by Value and Volume (area and units), 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure Construction, City Level Construction by Value and Construction Co

According to ConsTrack360, construction market in Argentina is expected to grow by 8.8% on annual basis to reach ARS 7,750,575.7 million in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 12.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.6% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of ARS 7,122,070.0 million to approximately ARS 10,835,654.8 million.

This report provides a detailed data-centric analysis of the construction sector in Argentina, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.

ConsTrack360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

Argentina Residential Construction Industry
The Argentine residential construction industry presents both opportunities and challenges. The demand for rental housing is growing, creating investment potential for BTR developments. Additionally, sustainability-focused housing projects align with global energy efficiency trends and government incentives.
However, developers must navigate inflationary pressures, high borrowing costs, and regulatory hurdles that can slow project execution. Companies that adopt cost-efficient construction methods, leverage government incentives, and incorporate sustainable building practices will be better positioned to succeed in Argentina’s evolving residential real estate market.

Macroeconomic Factors
• The residential construction sector in Argentina is facing significant challenges due to high inflation, rising construction costs, and economic instability. Over the past year, construction material costs have increased by over 100%, driven by inflationary pressures and supply chain disruptions. This has made it difficult for developers to maintain cost-effective projects and for homebuyers to afford new housing.
• One key trend shaping the market is the shift toward Build-to-Rent (BTR) housing. With declining homeownership affordability due to high mortgage rates and limited access to credit, rental demand is rising, particularly in major urban centers such as Buenos Aires, Córdoba, and Rosario. Sustainable and energy-efficient residential developments are also gaining traction as developers and policymakers focus on reducing energy consumption in new housing projects.
• However, the industry faces major challenges, including exchange rate volatility, which affects foreign investment in real estate. Additionally, bureaucratic delays in obtaining building permits and complex regulatory requirements slow down project timelines, discouraging investment in large-scale residential developments.

Project Landscape
• Several ongoing and upcoming residential projects are shaping Argentina’s housing sector. The Procrear II program, a government-led initiative, expands social housing projects across various provinces, providing subsidized homes for lower-income families. Additionally, private sector developers focus on high-rise luxury apartment projects in premium Buenos Aires and Córdoba locations.
• The private sector dominates high-end and rental housing developments, while public sector investments remain concentrated in affordable housing and urban regeneration projects. The government has also been exploring public-private partnerships (PPPs) to stimulate residential construction in areas with high housing demand.
• The investment outlook remains uncertain but promising, with developers increasingly relying on dollar-denominated transactions to hedge against inflation risks. Additionally, foreign investors continue to show interest in Argentina’s real estate market, particularly in areas with strong rental property demand.

Government Policies & Programs
• The Argentine government has implemented several initiatives to support residential construction, including the Procrear II program, which aims to provide subsidized mortgage loans and increase the supply of affordable housing. The government also promotes urban zoning reforms encouraging higher-density housing projects in urban centers.
• Incentives for green-certified residential buildings are becoming more common, with developers receiving tax breaks for energy-efficient housing projects. Additionally, new seismic safety regulations require developers to adopt stricter construction standards to ensure earthquake-resistant housing structures.
• Different policies are being implemented at the federal and state levels to address housing shortages. Provincial governments are launching targeted affordable housing projects, while the national government is promoting land regularization programs to legalize informal housing settlements and integrate them into the formal housing market.

Industry-Specific Developments
• The industry is witnessing several technological advancements to improve construction efficiency and reduce costs. Prefabricated housing techniques are becoming more common, helping developers complete projects faster and at lower costs. Additionally, AI-driven real estate analytics are being used to optimize urban planning and housing market forecasting.
• Sustainability initiatives are also gaining momentum. The government has introduced mandatory energy efficiency standards for new housing developments, encouraging using solar panels, green insulation materials, and water-saving technologies. The market for net-zero energy homes is gradually expanding, particularly in higher-end residential projects.
• However, the industry is struggling with a shortage of skilled labor, particularly in masonry, plumbing, and electrical trades. To address this, the government has launched apprenticeship programs and vocational training initiatives to upskill workers in the construction sector.

Argentina Commercial Construction Industry
The Argentine commercial construction sector presents opportunities in mixed-use developments, green-certified office spaces, and modern retail projects. Developers who adapt to changing workplace trends, invest in sustainability, and leverage government incentives will be well-positioned to succeed.
However, rising construction costs, high office vacancy rates, and economic uncertainty pose risks. Companies that embrace flexible commercial real estate strategies, integrate smart building technologies, and explore repurposing underutilized commercial properties will have a competitive edge in navigating Argentina’s evolving commercial construction landscape.

Macroeconomic Factors
• Argentina’s commercial construction sector faces significant challenges due to high inflation, rising construction costs, and economic uncertainty. Steel, cement, and labor costs have surged, making large-scale commercial projects more expensive to execute. Additionally, high interest rates and limited access to credit are reducing private sector investment in new office, retail, and hospitality developments.
• A major trend reshaping the industry is the growth of mixed-use developments, which combine retail, office, and residential spaces. Developers are increasingly focusing on flexible commercial spaces that can adapt to market changes, such as hybrid work models and shifting consumer behavior in retail. The demand for co-working spaces and business hubs is rising, particularly in Buenos Aires and Córdoba, where companies are downsizing traditional office space.
• However, the sector faces key risks, including rising office vacancy rates due to remote work trends and declining foot traffic in traditional shopping districts as e-commerce expands. These factors force developers to rethink commercial real estate strategies, focusing more on experiential retail spaces and tech-enabled office environments.

Project Landscape
• Several large-scale commercial projects are underway in Argentina, particularly in urban centers where demand for premium retail and office spaces remains strong. Notable developments include:
Paseo Alcorta Expansion (Buenos Aires) – A high-end shopping mall redevelopment featuring premium retail stores, entertainment venues, and dining experiences.
Distrito Quartier Puerto Retiro (Buenos Aires) – A mixed-use commercial complex integrating offices, residential units, and retail spaces, reflecting the trend toward multi-purpose developments.
Cordoba Business Park Expansion – A modern office and commercial complex catering to multinational companies expanding in Argentina’s second-largest city.
• The private sector remains the primary driver of commercial construction, with real estate investment firms and foreign developers leading high-end office and retail projects. Meanwhile, the public sector focuses on infrastructure improvements such as transportation hubs and urban regeneration projects supporting commercial real estate development.
• Despite economic challenges, foreign direct investment (FDI) continues to play a role, particularly in high-end commercial properties and hospitality developments. However, investment sentiment remains cautious due to macroeconomic volatility and exchange rate fluctuations, making dollar-denominated real estate transactions more common.

Government Policies & Programs
• The Argentine government has introduced several policies and incentives to support commercial construction, including tax benefits for developers investing in green-certified commercial buildings. Additionally, foreign ownership restrictions on commercial real estate have been eased, encouraging international investors to expand their presence in the market.
• One key initiative is the government’s push to convert underutilized office spaces into residential or mixed-use developments. This strategy aims to reduce office vacancy rates and revitalize city centers by repurposing outdated commercial properties.
• New regulatory changes are being implemented to improve building safety, energy efficiency, and accessibility in commercial real estate. Developers constructing LEED-certified office buildings or eco-friendly shopping centers are eligible for tax reductions and fast-tracked permit approvals.

Industry-Specific Developments
• Technological advancements are transforming Argentina’s commercial construction industry. AI-driven building management systems, smart office designs, and digital real estate analytics are improving efficiency. Many new commercial projects now feature automated energy monitoring, touchless access control, and AI-enhanced security systems.
• Sustainability is also a growing focus, with green building certifications such as LEED and EDGE becoming more common. Developers are integrating solar energy, water recycling systems, and smart HVAC technologies to enhance building efficiency and lower operational costs.
• However, skilled labor shortages in commercial construction remain a bottleneck for the sector. The government invests in vocational training programs to upskill workers in high-rise construction, smart building installation, and commercial real estate management.

Argentina Institutional Construction Industry
Argentina’s institutional construction sector presents strong investment opportunities, particularly in healthcare and education infrastructure. Government-backed hospital expansions, school modernization projects, and private-sector investments in medical and research facilities drive demand for modern institutional buildings.
However, budget constraints, rising material costs, and workforce shortages remain key challenges. Developers who leverage public-private partnerships, integrate smart building technologies, and align with sustainability initiatives will be well-positioned to succeed. Adapting to government policies and investing in innovative, cost-efficient institutional projects will be crucial for long-term growth in Argentina’s institutional construction sector.

Macroeconomic Factors
• Argentina’s institutional construction sector is being driven by demand for healthcare, education, and government infrastructure projects. Despite budgetary constraints and economic instability, the government has prioritized modernizing hospitals, expanding educational facilities, and improving public services.
• However, inflation and rising construction costs are creating challenges for institutional projects. The cost of cement, steel, and imported medical equipment has surged, making it more expensive to complete hospital and school construction projects. Additionally, public sector funding limitations have slowed the approval of new government-led infrastructure projects.
• Integrating smart technology in hospitals and educational institutions is a key trend shaping the sector. The adoption of digital health infrastructure, AI-driven diagnostics, and smart classroom technologies is increasing, helping to improve efficiency and service delivery. Public-private partnerships (PPPs) are also playing an increasing role in financing and managing large-scale institutional projects.

Project Landscape
• Argentina is investing in several large-scale hospital and school modernization projects to address healthcare and education infrastructure gaps. Notable projects include:
Hospital del Bicentenario (Buenos Aires Province) – A new state-of-the-art public hospital to improve healthcare access in underserved areas.
Nuevo Hospital Central de San Juan – A modern healthcare facility integrating digital health records and AI-assisted diagnostics.
Education Infrastructure Expansion Program – A national initiative supporting the construction of new schools and university facilities to accommodate Argentina’s growing student population.
• The public sector is dominant in institutional construction, with most funding coming from national and provincial governments. However, due to budget constraints, the government increasingly turns to private investors to finance and operate new institutional facilities, particularly healthcare and education.
• Foreign investment in private healthcare and education institutions is growing, with international hospital groups and private universities expanding their presence in Buenos Aires, Córdoba, and Mendoza. However, investment sentiment remains cautious due to economic instability and regulatory uncertainty.

Government Policies & Programs
• The Argentine government has launched various initiatives to support institutional construction, including the National Healthcare Infrastructure Plan, which prioritizes the expansion of hospitals and medical research centers. The Education Infrastructure Program also provides funding for modernizing public schools and universities.
• To encourage private sector participation, the government offers tax incentives for private healthcare and education construction investors. Foreign companies building private hospitals, research centers, or international schools can benefit from reduced corporate tax rates and medical and educational equipment import duty exemptions.
• New regulatory changes require hospitals and educational institutions to meet stricter energy efficiency and accessibility standards. Developers incorporating renewable energy, smart ventilation systems, and earthquake-resistant designs are eligible for government subsidies.

Industry-Specific Developments
• Technology is playing an increasing role in Argentina’s institutional construction sector. Smart hospitals with AI-powered diagnostics, digital patient records, and telemedicine infrastructure are becoming more common. Similarly, AI-assisted learning platforms, digital classrooms, and e-learning solutions are transforming educational facilities.
• Sustainability is also a major focus, with solar-powered hospitals, water conservation systems, and green-certified school buildings being developed to reduce operational costs and carbon footprints. The government promotes eco-friendly institutional construction, aligning with Argentina’s climate action commitments.
• However, the sector faces labor shortages in specialized construction fields, particularly in hospital engineering, medical facility management, and high-tech educational infrastructure. To address these workforce gaps, the government is investing in training programs for engineers and healthcare construction specialists.

Argentina Industrial Construction Industry
Argentina’s industrial construction sector presents strong investment opportunities, particularly in logistics hubs, high-tech manufacturing, and renewable energy infrastructure. The government’s push for automation, energy efficiency, and foreign investment creates demand for modern industrial facilities.
However, rising land costs, labor shortages, and currency instability pose risks. Developers and investors who adopt digital manufacturing solutions, invest in workforce development, and align with sustainability initiatives will be well-positioned for long-term success. The expansion of high-tech industrial parks, logistics networks, and energy-efficient factories will be key drivers of growth in Argentina’s evolving industrial landscape.

Macroeconomic Factors
• Argentina’s industrial construction sector is experiencing significant expansion, driven by logistics, manufacturing, and renewable energy infrastructure. The country is a key manufacturing hub in South America, with a strong presence in the automotive, agriculture, and food processing industries. Additionally, e-commerce and logistics demand growth has accelerated the construction of warehouses and distribution centers.
• However, inflation and rising construction costs remain major challenges for industrial development. Currency depreciation and supply chain disruptions have increased the cost of steel, concrete, and machinery imports. Additionally, high borrowing costs and economic instability have made it difficult for companies to finance new industrial projects.
• A key trend shaping the sector is the expansion of high-tech industrial parks, designed to attract foreign investment in advanced manufacturing, electric vehicle (EV) production, and smart factories. Additionally, Argentina’s renewable energy push drives investment in solar farms, wind energy infrastructure, and hydrogen production plants.

Project Landscape
• Argentina’s industrial construction sector is seeing major logistics, manufacturing, and renewable energy developments. Key projects include:
Toyota and Volkswagen Plant Expansions (Buenos Aires Province and Córdoba) – Leading automotive manufacturers are increasing local production capacity to support regional exports.
Mercado Libre Logistics Hub (Buenos Aires) – A large-scale e-commerce distribution center supporting the rapid expansion of online shopping in Argentina.
Tech Industrial Park in Mar del Plata – A high-tech industrial complex focusing on electronics, software development, and innovation hubs.
Vaca Muerta Gas and Energy Infrastructure – Expansion of oil and natural gas facilities in one of Argentina’s largest energy reserves, boosting the country’s industrial output.
• The private sector dominates industrial construction, with multinational corporations and local manufacturers leading investment in factories, processing plants, and logistics centers. Meanwhile, the public sector invests in transportation and energy infrastructure, such as railway modernizations and renewable energy projects, to support industrial expansion.
• Foreign investment in industrial real estate and logistics infrastructure is increasing, particularly from Brazil, China, and the U.S. However, economic volatility and currency risks remain barriers to long-term industrial investments.

Government Policies & Programs
• The Argentine government has introduced several investment incentives to support industrial construction, including tax breaks and import duty exemptions for companies developing manufacturing facilities, logistics centers, and energy-efficient industrial parks.
• Special economic zones (SEZs) have been established to attract foreign manufacturers, offering reduced corporate taxes and fast-tracked licensing benefits. The Industrial Development Law also promotes investment in high-tech production and automation, supporting Argentina’s transition to Industry 4.0.
• New environmental regulations require industrial buildings to meet energy efficiency and carbon reduction targets. Developers incorporating solar power, waste recycling systems, and sustainable construction materials into their projects receive financial incentives and government support.

Industry-Specific Developments
• Technology is transforming Argentina’s industrial construction sector. AI-driven logistics hubs, automated warehouses, and smart factories are becoming more common. Companies invest in robotics, IoT (Internet of Things), and machine learning to optimize manufacturing processes and reduce operational costs.
• Sustainability is a growing priority, with green industrial zones and energy-efficient factories becoming standard. Developers focus on low-carbon manufacturing, electric vehicle production plants, and hydrogen energy infrastructure to align with Argentina’s climate commitments.
• However, the sector faces labor shortages in specialized fields, particularly engineering, construction management, and skilled trades. To address workforce challenges, the government is investing in vocational training programs for industrial workers and engineers.

Argentina Infrastructure Construction Industry
Argentina’s infrastructure construction sector offers significant investment opportunities, particularly in transportation, renewable energy, and digital infrastructure. The government’s commitment to expanding highways, ports, and metro systems and strong private sector participation make infrastructure a key driver of economic development.
However, inflation, funding constraints, and regulatory complexity must be addressed. Developers who align with sustainability goals, leverage public-private partnerships, and integrate smart infrastructure solutions will be best positioned to succeed. Argentina’s strategic location, rapid urbanization, and digital transformation initiatives will continue to drive demand for modern and resilient infrastructure.

Macroeconomic Factors
• Argentina’s infrastructure construction sector is a key driver of economic growth. The government prioritizes transportation, energy, and digital infrastructure to support industrial expansion and urban development. Major investments are being made in highways, rail networks, renewable energy, and smart city projects to modernize Argentina’s infrastructure and improve regional connectivity.
• However, inflation and rising construction costs are major obstacles. Due to currency depreciation and supply chain disruptions, the price of steel, cement, fuel, and imported machinery has increased. Public debt constraints have also limited the government’s ability to finance large-scale infrastructure projects, leading to greater reliance on public-private partnerships (PPPs) and foreign investment.
• Argentina’s transition toward green and smart infrastructure is a key trend shaping the sector. The government focuses on low-carbon transportation systems, renewable energy projects, and digital transformation initiatives, aligning with global sustainability goals and climate change commitments. Expanding 5G technology and fiber-optic broadband networks is a growing priority to support Argentina’s digital economy.

Project Landscape
• Several large-scale infrastructure projects are currently transforming Argentina’s transport and energy sectors. Key developments include:
North-South Highway Expansion – A multi-phase highway and road network expansion to improve freight transportation and intercity connectivity.
Belgrano Cargas Railway Modernization – A major railway upgrade project to improve cargo transportation for Argentina’s agricultural and industrial exports.
Néstor Kirchner and Jorge Cepernic Hydroelectric Dams (Santa Cruz Province) – Large-scale renewable energy projects to increase hydroelectric capacity and reduce reliance on fossil fuels.
Buenos Aires Metro Line Expansion – A public transport expansion project to enhance urban mobility and reduce traffic congestion.
Vaca Muerta Gas Infrastructure – Development of gas pipelines and processing plants to support Argentina’s growing energy export market.
• The private sector plays a significant role in infrastructure construction, particularly in renewable energy, telecommunications, and logistics infrastructure. Meanwhile, the public sector remains dominant in transportation projects, relying on international loans and development funds from entities such as the World Bank, Inter-American Development Bank (IDB), and China’s Belt and Road Initiative.
• Argentina is attracting foreign direct investment (FDI) in infrastructure, particularly from China, the European Union, and the United States. However, long-term investors are concerned about economic volatility, regulatory uncertainty, and currency risks.

Government Policies & Programs
• The Argentine government has introduced significant infrastructure development programs, including the National Transportation Plan, which aims to modernize highways, ports, railways, and airports. The Renewable Energy Investment Promotion Law also supports investment in wind, solar, and hydroelectric power plants.
• The PPP model is increasingly used to finance highway, port, and energy projects, reducing the burden on public finances. Foreign investors and multinational construction firms are encouraged to participate in infrastructure projects through tax incentives, reduced import duties on construction equipment, and fast-tracked permitting processes.
• Stricter environmental regulations require infrastructure projects to meet sustainability and resilience standards. Developers incorporating low-carbon materials, energy-efficient designs, and disaster-resistant engineering solutions receive financial incentives and government support.

Industry-Specific Developments
• Technology is transforming Argentina’s infrastructure sector, with AI-driven project management, predictive maintenance, and smart traffic systems improving efficiency. Using digital twins to simulate infrastructure projects before construction is helping to reduce costs and optimize urban planning.
• Sustainability is becoming a major focus, with green-certified highways, smart grids, and energy-efficient buildings being developed. The government also promotes electric vehicle (EV) charging networks, water conservation systems, and carbon capture technology in large-scale infrastructure projects.
• Despite strong investment, skilled labor shortages in civil engineering, renewable energy, and transportation infrastructure pose challenges. The government addresses this issue by investing in training programs for engineers, urban planners, and infrastructure project managers to ensure a steady workforce supply.

Scope

• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 – 2028 in Argentina. KPIs covered include the following:
• Market size by value
• Market size by volume of construction
• Number of units

• Argentina Economic Indicators

• Argentina Top Cities Construction Data

• Argentina Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Housing type (multi family, single family)
• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

• Argentina Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

• Argentina Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

• Argentina Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

• Argentina Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

• Argentina Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

• Argentina Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Healthcare green building construction
• Educational green building construction

• Argentina Infrastructure Construction Sectors: 10-year market size & forecast in value terms by
• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

• Argentina Green Infrastructure Construction: 10-year market size & forecast in value terms

• Argentina Construction Cost Structure Analysis: 10-year market size & forecast in value terms
• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development) Show more