Global foreign direct investment (FDI) is on the rise, reaching a value of USD 1.76 trillion in 2015, as reported by the United States Economic and Social Commission for Asia and Pacific (UNESCAP). This marked a 38% increase compared to 2014. The surge in FDI was largely driven by cross-border mergers and acquisitions, often used for corporate reconfiguration, including tax inversions. Developed economies, in particular, experienced a substantial increase in FDI inflows, reaching USD 962 billion in 2015, which was an 84% rise from 2014. The Asia-Pacific region also received a significant share of FDI inflows, totaling USD 559 billion in 2015, a 5.6% increase from the previous year. This influx of FDI in construction in the Asia-Pacific region has resulted in a boost in construction projects and real estate development. Coupled with FDI in retail, it has contributed to the growth of construction projects in the region, driving the demand for prefabricated buildings.
In 2015, FDI played a crucial role in shaping the construction landscape. Developed economies witnessed a substantial increase in FDI, particularly through cross-border mergers and acquisitions. This trend was driven by corporate reconfiguration strategies, including tax inversions. The Asia-Pacific region, a key recipient of FDI inflows, experienced significant growth, with a total of USD 559 billion in 2015. This increase, coupled with FDI in the construction sector, has fueled a surge in construction projects and real estate development in the region. The demand for prefabricated buildings has risen as a result of these developments.
The impact of FDI on construction is evident, especially in the Asia-Pacific region, where increased investment has led to a higher number of construction projects. This surge is not only limited to the construction sector but has also influenced real estate development. As the demand for construction projects continues to rise, the prefabricated buildings market is poised for growth in the Asia-Pacific region. The inflow of FDI has become a catalyst for development, driving the construction industry and, consequently, the demand for innovative and efficient construction solutions like prefabricated buildings.
Covered Aspects:Report Attribute/Metric | Details |
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Market Opportunities | Utilizing lean manufacturing methods |
Market Dynamics | Rising increasing government initiative |
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