Construction market hot spots?
We have long been familiar with the concept of the BRIC countries – Brazil, Russia, India and China – being leading growth economies.
The person responsible for naming the BRICs – Jim O’Neill, retired chairman of Goldman Sacs Asset Management – is now credited with establishing MINT (Mexico, Indonesia, Nigeria and Turkey) as the countries to watch.
It is very tempting to conclude that they are just a set of convenient initials and it is a result of some good marketing on his behalf!
With the annual MIPIM property industry shindig in Cannes about to get underway (11-14 March), it is timely to review who are the next countries ripe for UKTI’s merry band of brothers to descend upon with impunity.
The BRICs have been helped by huge populations (China and India) and by major sporting events (Winter Olympics 2014 and World Cup 2018 in the case of Russia, World Cup 2014 and Olympic Games 2016 in the case of Brazil).
The MINT countries are less obvious targets but no less worthy of study for the construction market.
Two of these are particularly worth focusing upon – Turkey and Nigeria.
In their Global Construction 2025 report, Global Construction Perspectives and Oxford Economics found that Nigeria was expected to achieve the second highest growth in construction output, 8% a year. In particular, the need for 1.5 million new homes every year until 2025 would make the country the fifth largest housing market in the world.
With a home population of 75 million, the £50 billion plus Turkish construction industry is another growing world force. Despite some concerns over apparent corruption in the industry, BMI’s Infrastructure Report predicts that average real construction growth in 2014-22 will be 5%. This is helped by a healthy pipeline in place.
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