The residential construction market consists of constructing building and selling it to the buyers. This process can be done in two ways. One in which, the architect constructs the entire building with material based on his own choices and preferences and then sells it to the buyers with a profit margin. Other involves significant contribution of buyers for the material choice and designs. Depending on the size and cost of construction project, service provider could be a large company or any independent contractor. Usually, big projects such as a township or residential society are constructed by large companies, while individual houses or small building project is constructed by individual contractors. Residential construction could be a type of housing estate or apartments. Even after effective construction of residential building, it requires time to time maintenance and renovation sometime, which creates and after market for residential construction business. The residential construction market is expected to grow significantly due to increasing population and lack of new residential areas especially in tier 1 cities.
COVID-19 Impact analysis
- COVID-19 pandemic has shut down the construction of residential properties attributed to the lockdown in countries worldwide. This has hampered the growth of residential construction market in 2020 and, is likely to revive in 2021.
- COVID-19 has already affected the sales of residential construction in the second and third quarter of 2020 and is reviving in 2021.
- The major demand for residential construction was previously noticed from countries including the U.S., Germany, China, and India, which are negatively affected by the spread of the corona virus, thereby declining the demand for residential construction.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Residential construction manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans.
- Residential construction service providers are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
Increase in population is demanding more space for accommodation, especially in tier 1 cities. To fulfill the demand, construction activities are increased by both government bodies and private sector companies. Governments in many countries such as India are also emphasizing on the development of rural areas. These are the key factors that have been fueling the growth of the residential construction market. In addition, younger generation is dominating the population in age segment in emerging economies such as India, Japan, and China. Younger generation is easily attracted toward the newly designed houses in comparison to old buildings. This is another factor which drives the growth of the residential construction market. Scarcity of building material raises the cost of overall construction, which is projected to hamper the growth of the residential construction market at a global level.
- Building construction companies are moving toward green construction techniques to avoid the environmental damage and protect the natural balance. This technique helps reduce the cost of construction by using sustainable construction material. This is expected to foster the demand for green buildings which is projected to fuel the growth of the residential construction market.
- Novel technical advancement is consistently done to improve the effectiveness and reduce the cost. Augmented reality is such a novel technology used for residential development for faster construction and cost reduction. It helps in creating 3D models of constructions which helps in consideration of important factors for the effective and efficient development.
- Region-wise, Asia-Pacific is dominating the market by accounting for the largest part of revenue. North America holds the second largest market followed by Europe.
Key Benefits of the Report
- This study presents the analytical depiction of the residential construction market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the residential construction market share.
- The current market is quantitatively analyzed to highlight the residential construction market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides detailed residential construction market analysis based on competitive intensity and how the competition will take shape in coming years.
Residential Construction Market Report Highlights
By Sales Type
Key Market Players
Toll Brothers,, D.R. Horton,, KB Home,, Meritage Homes Corp.,, Lennar Corp.,, Taylor Morrison,, PulteGroup,, Century Communities,, GI Homes., NVR,