(MENAFN- GlobeNewsWire - Nasdaq) Australia's construction market presents opportunities in build-to-rent housing, green building technologies, modular constructions, and smart infrastructure. Emphasis on sustainability, digital technologies, and government-backed initiatives like infrastructure investments and affordable housing policies are key drivers of growth across all construction sectors.

Dublin, Nov. 13, 2025 (GLOBE NEWSWIRE) -- The "Australia Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" report has been added to ResearchAndMarkets's offering.
Construction market in Australia is expected to grow by 6.9% on annual basis to reach AUD 193.20 billion in 2025.
The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 8.9%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 5.6% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of AUD 180.78 billion to approximately AUD 256.14 billion.
This report provides a detailed data-centric analysis of the construction sector in Australia, 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. The analyst'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

Australia Residential Construction
The Australian residential construction sector is at a critical juncture, shaped by rising costs, evolving market demands, and government intervention. While inflation and supply chain disruptions challenge affordability and project viability, initiatives such as the Housing Australia Future Fund (HAFF) and the National Housing Accord (NHA) support housing development. The shift toward build-to-rent (BTR) models and sustainable housing solutions highlights an industry adapting to long-term rental demand and environmental considerations.
However, overcoming labor shortages and ensuring cost-effective construction remain key concerns for developers and policymakers. Investment in modular construction technologies and energy-efficient building practices will mitigate costs and reduce project delays. Strong public-private collaboration will be required to meet housing targets while balancing affordability and sustainability goals, ensuring the long-term resilience of Australia's residential construction sector.

Australia Commercial Construction
The Australian commercial construction sector is evolving in response to rising costs, shifting market demands, and sustainability goals. Inflation and material price volatility continue to impact project budgets, while hybrid work models have led to declining demand for traditional office spaces. However, mixed-use developments and flexible workspaces are key trends that reflect changing business and consumer needs.
Government policies, such as the Commercial Building Disclosure (CBD) Program and tax incentives for sustainable buildings, are driving investment in green-certified and net-zero commercial projects. Integrating AI-powered construction planning, smart building technologies, and BIM improves efficiency and reduces operational costs. As businesses adapt, leveraging technology and sustainability initiatives will be critical for long-term competitiveness and resilience in the commercial construction landscape.

Australia Institutional Construction
The institutional construction sector in Australia is experiencing steady growth, particularly in healthcare and education infrastructure, despite budget constraints and rising operational costs. Delays in government funding have slowed some projects, but significant state and federal investments continue to support hospital expansions and university campus upgrades. As demand for modernized public facilities increases, efficient project management and alternative funding models will be critical to maintaining momentum.
Government policies, such as Education Infrastructure Grants and Healthcare Infrastructure Funding, are helping to drive expansion, with a strong focus on sustainability and technology adoption. The shift toward green building standards and digital healthcare construction highlights a long-term commitment to efficiency and environmental responsibility. Moving forward, public-private partnerships (PPPs) will play a crucial role in bridging funding gaps and ensuring the timely delivery of essential institutional projects.

Australia Industrial Construction
The Australian industrial construction sector is undergoing a significant transformation, driven by e-commerce growth, renewable energy investments, and advanced manufacturing expansion. While high energy costs and global trade uncertainties pose challenges, the sector is seeing increased development in logistics hubs, data centers, and sustainable industrial facilities. The push for Renewable Energy Zones (REZs) and green steel manufacturing highlights the shift toward a low-carbon industrial economy.
Government initiatives, such as Infrastructure Investment Grants and tax incentives for automation, encourage the adoption of AI-driven industrial projects and robotics to improve efficiency. Sustainability remains a priority, with companies investing in carbon-neutral manufacturing and energy-efficient industrial facilities. The public-private collaboration will be key to ensuring continued industrial growth, innovation, and long-term sector resilience.

Australia Infrastructure Construction
Australia's infrastructure construction sector is undergoing a major transformation, driven by rising transport and renewable energy project investments. However, inflation, rising material costs, and skills shortages create challenges that could delay project timelines and increase overall expenses. The Sydney to Newcastle High-Speed Rail and Melbourne Metro Tunnel Expansion are key projects shaping the country's urban connectivity, with strong government backing ensuring their progression.
Government initiatives, such as the Infrastructure Market Capacity Report 2024 and renewable energy integration programs, highlight a long-term commitment to sustainable and technologically advanced infrastructure. Adopting smart infrastructure technologies, digital twins, and carbon-neutral transport systems is setting new industry standards. Moving forward, public-private collaboration and workforce development strategies will be critical in ensuring Australia's infrastructure remains resilient, future-proof, and capable of supporting economic growth.

Report Scope: T his report provides market size and forecast across 40+ construction segments for ten years from 2020-2029 in Australia.
KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Australia Economic Indicators
Australia Top Cities Construction Data

Australia 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)

Australia 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)

Australia 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)

Australia 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

Australia 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)

Australia 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)

Australia 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

Australia 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)

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

Australia 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)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

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