(MENAFN- GlobeNewsWire - Nasdaq) South Africa's construction market offers growth opportunities from 2026, driven by government investments in renewable energy and industrial infrastructure. Despite challenges like rising costs and US tariffs impacting supply chains, strategic government allocations signal potential for sector recovery and development.

Dublin, Oct. 31, 2025 (GLOBE NEWSWIRE) -- The "South Africa Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)" report has been added to ResearchAndMarkets's offering.
South Africa's construction industry is projected to shrink by 2% in real terms in 2025, due to rising construction costs, and declining private investment, coupled with major decline in the residential sector.

According to the Statistics South Africa (Stats SA), the average construction materials price index rose marginally by 0.7% year-on-year (YoY) in the first half of 2025, while the value of residential building plans passed in the country declined by 8.4% YoY, over the same period. The South African construction industry also faces added pressure from US tariffs disrupting supply chains and leading to material shortages and higher import costs, that is worsened by a weak rand.
The analyst expects the South African construction industry to rebound at an average annual growth rate of 3.6% between 2026 and 2029, supported by government investments in renewable energy, and industrial infrastructure sectors, coupled with allocations as part of country's financial year (FY) 2025-26 (April 2025 to March 2026) Budget.

As part of the latest budget, the government is estimated to spend ZAR2.6 trillion ($137.8 billion) in the current financial year, marking an increase of 7.8% compared to the expenditure of ZAR2.4 trillion ($128.1 billion) in the revised estimates (RE) of the FY2024-25 Budget. By sectors, the government allocated ZAR508.7 billion ($27.1 billion) for learning and culture, ZAR422.3 billion ($22.5 billion) for social development, ZAR298.9 billion ($15.9 billion) for healthcare, ZAR289.8 billion ($16 billion) for economic development, ZAR286.6 billion ($15.3 billion) for community development, and ZAR41.8 billion ($2.2 billion) for housing development.

Scope

• 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 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
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