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South Africa Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

Publisher GlobalData
Published Jun 25, 2025
Length 54 Pages
SKU # GBDT20204566

Description

South Africa Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

Summary

GlobalData expects the construction industry in South Africa to shrink by 0.5% in real terms in 2025 due to rising construction costs, and declining private investment, coupled with continued weakness in the residential construction sector. According to Statistics South Africa (Stats SA), the average construction material price index (CMPI) rose by 1.8% year-on-year (YoY) in January-April 2025, while the value of residential building plans passed in the country declined by 9.9% YoY in January-March 2025. The industry also faces added pressure from US tariffs disrupting supply chains, leading to material shortages and higher import costs. Moreover, attacks by construction mafias and local interference have also stalled key projects. For instance, the ZAR550 million ($29.4 million) Golden Highway upgrade project, undertaken by the local construction company LoneRock was stalled in June 2025. due to constant threat on its employees.

The South African construction industry is expected to register an annual growth of 3.5% between 2026 and 2029, supported by allocations as part of the country’s Financial Year (FY) 2025-26 Budget (April 2025 - March 2026), in which the government is estimated to spend ZAR2.6 trillion ($137.7 billion) in the current financial year. Additionally, the government’s plan to increase the share of renewable in the total energy mix from 22% in 2024 to 42% by 2030, will also support the industry’s growth over the reminder of the forecast period. In June 2025, the government, through the Department of Electricity and Energy and National Treasury, announced its plan to advance towards Independent Transmission Projects (ITP) Programme to modernize and expand the country’s power grid. The program is aimed at addressing transmission constraints and supporting economic growth, by developing over 14,000km of new power lines and 53GW of generation capacity over the next decade

GlobalData’s Construction in South Africa - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the South African construction industry, including -
  • The South African 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 the South African 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 South Africa. It provides -
  • Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in South Africa, 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 our 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 business strategies using GlobalData's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

54 Pages
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 Risk Profile
4 Construction Outlook
4.1 All Construction
Outlook
Latest news and developments
Construction Projects Momentum Index
4.2 Commercial Construction
Outlook
Project analytics
Latest news and developments
4.3 Industrial Construction
Outlook
Project analytics
Latest news and developments
4.4 Infrastructure Construction
Outlook
Project analytics
Latest news and developments
4.5 Energy and Utilities Construction
Outlook
Project analytics
Latest news and developments
4.6 Institutional Construction
Outlook
Project analytics
Latest news and developments
4.7 Residential Construction
Outlook
Project analytics
Latest news and developments
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 CRI Methodology
8 About GlobalData
9 Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: South Africa, Key Economic Indicators
Table 3: South Africa, Commercial Construction Output by Project Type (Real % Change), 2020–29
Table 4: South Africa, Top Commercial Construction Projects by Value
Table 5: South Africa, Industrial Construction Output by Project Type (Real % Change), 2020–29
Table 6: South Africa, Top Industrial Construction Projects by Value
Table 7: South Africa, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: South Africa, Top Infrastructure Construction Projects by Value
Table 9: South Africa, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: South Africa, Top Energy and Utilities Construction Projects by Value
Table 11: South Africa, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: South Africa, Top Institutional Construction Projects by Value
Table 13: South Africa, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: South Africa, Top Residential Construction Projects by Value
Table 15: South Africa, Key Contractors
Table 16: South Africa, Key Consultants
Table 17: South Africa, Construction Output Value (Real, $ Million)
Table 18: South Africa, Construction Output Value (Nominal, ZAN Million)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Sub-Saharan Africa, Construction Output (Real % Change), 2023–29
Figure 2: South Africa, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
Figure 3: South Africa, Risk Summary
Figure 4: South Africa, Risk Regional Comparison
Figure 5: South Africa, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
Figure 6: South Africa, Construction Output Value, by Sector (Real, $ Million), 2020–29
Figure 7: South Africa, Construction Value-add (ZAR Billion, Constant 2015 Prices)
Figure 8: South Africa, Gross Fixed Capital Formation (ZAR Billion, Constant 2015 Prices)
Figure 9: South Africa, Employment in the Construction Industry (In Thousands)
Figure 10: South Africa, Total value of recorded building plans passed by larger municipalities, 2019 Constant Prices (ZAR Million)
Figure 11: South Africa, Value of Buildings Reported as Completed in Larger Municipalities, 2019 Constant Prices (ZAR Million)
Figure 12: South Africa, Construction Materials Price Index, Total Construction, December 2023=100
Figure 13: South Africa, Construction Projects Momentum Index
Figure 14: Sub-Saharan Africa, Construction Projects Momentum Index
Figure 15: South Africa, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 16: South Africa, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 17: South Africa, Total Value of Building Plans Passed for Office and Banking Space and Shopping Space, Current Prices (ZAR Million)
Figure 18: South Africa, Total Value of Building Plans for Office and Banking Space and Shopping Space Reported as Completed, Current Prices (ZAR Million)
Figure 19: South Africa, Income from Accommodation and Food Services (ZAR Million, Current Prices)
Figure 20: South Africa, Total Retail and Wholesale Trade Sales (Constant 2019 Prices, ZAR Billion)
Figure 21: South Africa, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
Figure 22: South Africa, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 23: South Africa, Manufacturing Value-add (ZAR Billion, Constant 2015 Prices)
Figure 24: South Africa, Total Value of Industrial and Warehouse Space Plans Passed, Current Prices (ZAR Million)
Figure 25: South Africa, Total Value of Industrial and Warehouse Space Plans Completed, Current Prices (ZAR Million)
Figure 26: South Africa, Volume Index of Manufacturing Production (2019=100)
Figure 27: South Africa, Absa Purchasing Managers’ Index (PMI), Business Activity Index and New Sales Orders Index, Seasonally Adjusted
Figure 28: South Africa, Total Merchandise Exports (ZAR Billion)
Figure 29: South Africa, Volume Index of Mining Production (2019=100) and Mineral Sales (Current Prices, ZAR Billion)
Figure 30: South Africa, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 31: South Africa, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 32: South Africa, Construction Materials Price Index, Civil Engineering Construction, December 2023=100
Figure 33: South Africa, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 34: South Africa, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: South Africa, Electricity, Gas and Water Value-add (ZAR Billion, Constant 2015 Prices)
Figure 36: South Africa, Electricity Production (GWh)
Figure 37: South Africa, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 38: South Africa, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: South Africa, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 40: South Africa, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 41: South Africa, Real Estate Value-add (ZAR Billion, Constant 2015 Prices)
Figure 42: South Africa, Gross Fixed Capital Formation Residential (ZAR Billion, Constant 2015 Prices)
Figure 43: South Africa, Total Value of Residential Building Plans Passed, 2019 Constant Prices (ZAR Million)
Figure 44: South Africa, Total Value of Residential Buildings Reported as Completed, 2019 Constant Prices (ZAR Million)
Figure 45: South Africa, Residential Property Price Index, Dec 2020=100
Figure 46: South Africa, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 47: South Africa, Headquarters of Key Consultants (% of Total Project Pipeline)

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