Saturday, 15 March 2025
Q3 2024: Construction Pipeline Surges Ahead of New Supply
October 2024 – The third quarter of 2024 saw a significant rise in the amount of space under construction, far outpacing the volume of newly delivered supply. This trend signals an ongoing construction boom, particularly in sectors such as office, industrial, and residential real estate, as developers race to meet growing demand despite persistent market challenges.
According to industry data, the total space currently under construction across major markets is substantially larger than the supply delivered to date in 2024. This gap reflects both the robust demand for new properties and the lengthier timelines required to complete large-scale developments, many of which are slated for delivery in late 2024 or 2025.
Experts attribute the surge in construction activity to several factors, including sustained demand for modern, sustainable office and industrial spaces, as well as strong interest in high-quality residential projects in key urban areas. However, developers are also contending with ongoing supply chain disruptions, labor shortages, and rising construction costs, which have delayed some project completions.
“The volume of space under construction demonstrates the confidence that developers and investors have in the market’s future growth. Despite the hurdles, the pipeline remains robust, driven by demand for better and more sustainable buildings,” said a market analyst.
As the year progresses, it is expected that the gap between under-construction space and new supply will begin to narrow, with several large projects slated for completion in the coming months. However, the significant volume of space still in development suggests that the construction boom will extend into 2025 and beyond, as the real estate sector continues to evolve in response to changing market demands and sustainability targets.
Source: Industrial Research Forum
