Chile Construction Industry Report 2024: Output to Contract by 1.6% in Real-terms this Year, Owing to High Inflation, Interest Rates, and Rising Material Costs - Forecasts to 2028 - ResearchAndMarkets.com

The "Chile Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (H2 2024)" report has been added to ResearchAndMarkets.com's offering.

Chilean construction industry output to contract by 1.6% in real terms in 2024, owing to high inflation, interest rates, and rising construction material costs. According to the Banco Central de Chile, the construction industry's value add fell by 1.1% year on year (YoY) in Q1 2024, preceded by Y-o-Y decline of 2.4% in Q4 and 0.4% in Q3 2023.

A decline in investor and developer confidence, arising from ongoing weakness in the residential sector, amid a continuous drop in residential permits, will further weigh down the Chilean construction industry in the short to medium term. According to the Chilean Chamber of Construction (CChC), the total number of new residential construction permits issued declined by 6.2% YoY in the first four months of 2024, whereas the total area of residential permits issued fell by 1% YoY during the same period. Overall, the total number of residential building permits issued fell by 27.7% and the total area fell by 28.8% in 2023.

Over the remainder of the forecast period, the construction industry is expected to rebound at an annual average growth rate of 4.1% (2025-28), supported by investment in energy, transportation, and mining sectors. In March 2024, Chilean copper producer, Minera Centinela, announced plans to expand its copper plant in the Centinela mines with an investment of CLP2.1 trillion ($2.5 billion).

The project includes the construction of a new concentrator plant to increase the capacity by 140,000 tons annually by 2027. Furthermore, in March 2024, Mario Marcel - the Minister of Finance - announced plans add 3-4 lithium plants by 2026. In May 2024, the government published its Green Hydrogen Action Plan (2023-30), following the completion of the consultation process. This plan includes 81 actions across 18 categories to help Chile attain carbon neutrality by 2050.

Under this, the government will lower taxes for the hydrogen projects, reduce permit times by 30%, and provide CLP856.5 billion ($1 billion) funding to the hydrogen projects by 2030. Growth over the forecasted period will be also supported by concession contracts worth CLP15.1 trillion ($17.6 billion) - announced by the government in May 2024 for the period 2024-28 - which includes 43 projects for transport, public buildings, water, and disaster safety projects.

Scope

• Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Chile, 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 analyst'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 analyst's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Key Topics Covered:

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

For more information about this report visit https://www.researchandmarkets.com/r/uokblz

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