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Welcome to the latest insights from DIY Superstore Bloemfontein, your go-to experts in building materials and construction solutions. As we start 2024, it’s crucial for construction professionals across South Africa to stay ahead of the curve.
In this blog, we delve into the predicted trends and shifts in South Africa’s construction industry for 2024, offering valuable insights to help you navigate the evolving landscape.
The construction market in South Africa, valued at $25.5 billion in 2022, is projected to achieve an average annual growth rate (AAGR) of more than 3% during 2024-2027. This growth will be bolstered by developments in transport, energy, industrial, and housing projects.
However, the residential construction sector has faced slowdowns due to factors like illegal land occupation and community protests, leading to a drop in new residential building plans and project completions. Despite these challenges, a rebound is expected in 2024, fuelled by the government’s focus on delivering social housing units as part of its social housing program. Find more data at South Africa Construction Market Report Overview.
The Treasury’s 2023 Budget reflects a stronger economic growth forecast with the GDP of South Africa expected to rise from 0.9% in 2023 to 1.5% in 2024. A growth in GDP typically indicates an increase in construction activities as businesses expand and residential demand grows. Continue reading about key trends in the economy affecting local construction industry.
However, the overall economic growth is not expected to surpass 2% in the medium term, averaging below population growth. In the context of the construction industry, this economic scenario suggests cautious optimism. In other words, even though the total economy is growing, the average wealth or income per person may not increase, and could potentially decrease.
While there is growth, it may not be robust, and the competition for construction-related projects could intensify as the market seeks to maximise the available economic opportunities.
Inflation is anticipated to subside to around 5.5% in 2023 and 4.9% in 2024, despite risks due to global market volatilities. The inflation forecast is a key factor in financial planning. Inflation affects the cost of materials, labor, and overall project costs. Anticipating a decrease in inflation to around 4.9% in 2024 can help in making more accurate cost estimations and pricing strategies for future projects. Be prepared, read our blog on Understand Steel Prices in South Africa. Buckle in, the varying forecasts all point to the volatility of the steel industry and global economy.
As South Africa strides towards economic revitalisation, government policies and infrastructure plans play a crucial role in shaping the landscape of the construction industry.
This plan is a cornerstone of the government’s efforts. Projects under this plan are diverse, ranging from water projects to road construction and human settlements. As of recent updates, the public sector is projected to spend R903 billion on infrastructure over the medium term. A substantial portion of this, approximately R448 billion, will be allocated to state-owned companies and public-private partnerships.
Specific Projects: Several specific projects illustrate the scope and scale of this investment:
These projects collectively represent a significant portion of the total value of projects currently in construction, amounting to R 313.5 billion, with additional projects in procurement valued at R295.2 billion
Historically, election years in many countries, including South Africa, have seen increased government spending, particularly in areas like infrastructure. This trend is expected to continue in 2024, with the government likely to initiate or accelerate infrastructure projects as a way to garner public support and showcase development achievements. Such initiatives can lead to a surge in demand for construction services and materials.
South Africa’s construction industry is at the cusp of a technological revolution, with innovations like AI, IoT, AR/VR, drones, and green technologies paving the way for a more efficient, sustainable, and safer construction landscape. Read more about construction technology trends to watch in 2024.
In the rapidly evolving construction landscape of South Africa, cloud computing and collaboration platforms are becoming increasingly pivotal. By 2024, these technologies are expected to offer enhanced scalability and security facilitating seamless and efficient collaboration across construction projects.
Real-time collaboration capabilities and robust document management features are transforming how construction teams operate, reducing errors and maximising efficiency.
Digital twins, underpinned by AI and machine learning, are set to revolutionise project management and collaboration in the construction process. By automating repetitive tasks and analysing vast datasets, these technologies will enhance operational efficiency, reduce errors, and improve decision-making.
The integration of AI with Building Information Modeling (BIM) is redefining design, construction, and building management, marking a new era of innovation in the industry.
IoT technology is reshaping the South African construction industry by connecting a wide array of devices and equipment on-site. By 2024, IoT-enabled sensors will be instrumental in monitoring and optimising construction processes, tracking equipment usage, managing inventory, and ensuring worker safety. Also, you can make secure ON-SITE payments, say goodbye to hassle and embrace seamless transactions.
This comprehensive data collection and analysis will offer valuable insights, enabling predictive maintenance and proactive project management.
Drones are revolutionising surveying and inspection processes in construction. They are equipped with advanced technologies like cameras and LiDAR, enabling quick and accurate surveying of large areas, improving progress monitoring, and enhancing safety by reducing the need for hazardous manual inspections.
Augmented Reality (AR) and Virtual Reality (VR) technologies are playing a crucial role in the construction industry. AR allows workers to overlay digital information onto real-world environments, enhancing understanding and decision-making on-site.
VR offers immersive environments for stakeholders to explore and review projects before physical construction, revolutionising communication and planning processes.
Robotics and automation are key to transforming repetitive and labor-intensive tasks in construction. By 2024, advancements in robotics, such as bricklaying robots, autonomous vehicles, and robotic exoskeletons, are expected to become more prevalent, enhancing efficiency and worker safety.
South Africa’s construction industry is increasingly focusing on green building technologies (GBT). Rising energy costs and environmental concerns are driving the need for energy-efficient building systems and practices.
The Green Building Council of South Africa (GBCSA) is leading the green revolution in the country, promoting sustainable building standards and practices. This focus on green building is creating new market opportunities and demands for environmentally friendly designs and products. Read more about green building technologies.
Modular construction is gaining traction in South Africa as a fast and efficient building method. It involves factory-produced pre-engineered building units that are assembled on-site. This method offers benefits like reduced project duration, cost savings, and reduced construction waste.
Projects like the Hi Monte hotel at Montecasino, built using modular construction technology, showcase the efficiency and potential of this method in meeting the rapid population growth and urbanisation challenges in South Africa. Discover modular construction used in South Africa.
The heart of South Africa is Bloemfontein due to its central location, presents unique opportunities in the construction sector that align with national trends.
As a key city in the Free State province, Bloemfontein is likely to benefit from national infrastructure initiatives. This includes developments in transportation, public buildings, and urban renewal projects. The city’s strategic position means that infrastructure improvements will not only serve local needs but also bolster regional connectivity and trade.
Bloemfontein’s infrastructure, neglected for over a decade, is in dire need of refurbishment. This is exemplified by the sinkhole at Hoërskool Sentraal and another in Bayswater, highlighting the urgency for infrastructural intervention. The Mangaung Metro Municipality (MMM) is addressing these issues by considering appropriate budgeting for infrastructure in 2024. This will aim to tackle service delivery backlogs and necessary refurbishments.
Additionally, MMM plans to explore public-private partnerships, offering growth opportunities for Bloemfontein’s construction industry. This strategic approach signals a potential upswing for local infrastructure development. For more details, you can read why Bloem infrastructure needs urgent attention.
Bloemfontein, Free State, has become the leading choice in South Africa for first-time homebuyers in early 2023. Especially given the impressive 71.4% of home loan applications in the Free State coming from new buyers in Bloem. As a result, the city’s property market is witnessing a remarkable surge.
The city’s residential sector will continue to see a significant upturn in 2024. Previously, hitting a decade-high in sales in 2021 and 2022, with 3,492 and 3,295 units sold, respectively. These figures, encompassing both freehold and sectional title units, highlight Bloemfontein’s growing market dynamism.
A noteworthy aspect of this trend is the considerable interest from young adults aged 18 to 35, who represent a third of all homebuyers in Bloemfontein. This demographic shift underscores the evolving preferences and needs of the market, presenting unique opportunities for the construction industry.
Developers and builders in Bloemfontein need to be ready to tailor their offerings to this younger audience. This audience is not only looking for properties but also for homes that align with their lifestyles and aspirations. The construction industry, therefore, must adapt and innovate to cater to the needs and preferences of this influential buyer segment. Find out why first-time home buyers heading to Bloemfontein.
DIY Superstore Bloemfontein is positioned as a key player in supporting these regional construction trends. The range of building materials, hardware and services DIY offers caters to both traditional and emerging construction needs. Hence, the store can meet the demands of diverse projects in the Bloemfontein. Their expertise in quality materials and tech positions them as a valuable resource for professionals looking to engage in efficient construction practices.
In summary, while the Bloemfontein construction industry and the broader South African sector have faced significant setbacks, there is a cautious optimism for recovery and growth in the coming years. This hinges on improved economic conditions and increased government focus on infrastructure development. Keep a eye on our blog for more about South Africa’s Construction Industry trends. Also, explore our comprehensive range of building materials at DIY Superstore. From steel products to insulation, discover everything you need for your construction project in Bloemfontein.
