Industry Insight's latest building and construction report indicated that investment growth in the construction industry is is expected to moderate, while the industry starts to slowly recover. Investment in buildings, primarily at the mercy of the private sector, is expected to show a gradual recovery during 2013 and 2014, as spending on affordable housing gains momentum, alongside sporadic recovery in investment in commercial property, especially in the Gauteng area.
The report specifies that social spending by government will also support higher levels of investment in buildings, although this will also be subject to the challenges facing the civil industry, where budgets may not be implimented due to a funding shortfall in view of lower than expected revenue generation. Growth rates are however on the low side, and coming from a much lower base, considering the slump experienced in investment in buildings since 2008.
Information Provided by Industry Insights