A K-Shaped Construction Market

While the real estate industry is gathering in Munich, a K-shaped construction market is reality in the US.

Since the end of 2023, the annual rate of US data centre construction has grown by about $51 billion. All other private construction has fallen by about $120 billion.

The US is the major data centre investment market and largest globally. While other markets see investments too, they are at much smaller scale. So if this divide happens even in the US, how are other markets impacted?

It certainly differs. First feedback from EXPO REAL (Messe München) draws a mixed and sobering conclusion for German and European markets. On the other hand, India's real estate market is booming across most asset classes, and is projected to reach USD 1 trillion by 2030, roughly doubling from today.



Chart: Steve Rattner, based on US Census Bureau data.

#exporeal #realestate #cre #construction #datacentre #office #cre #commercialrealestate