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Steady government investments and an influx of FDI are driving the Chilean construction market

Press release July 16, 2014 Chile construction industry, chile construction companies

This report provides detailed market analysis, information and insights into the Chilean construction industry including construction industry's growth prospects by market, project type.

The Chile construction industry is expected to witness steady growth in the next few years on the account of the initiatives implemented by the government to boost the Chilean infrastructure. The Chilean government has decided to invest USD 14 billion on public infrastructure through the year 2014 to encourage the economy. Driven by a growing economy, and several public and private initiatives, the construction market has exhibited strong growth potential, expected to grow at a CAGR of 8.90% in the period between 2014 and 2018.

This report: Construction in Chile – Key Trends and Opportunities to 2018 highlights the current market scenario and key market drivers. It also provides insights on the key market players, prevalent trends driving the industry, and outlines the scope of the market in the forecast period.

Key market drivers

The Chile construction market is mainly driven by an increasing demand for housing units, combined with increased government investment particularly in the retail and mining sectors. This, alongwith steady economic development predicted to work in the favor of several local businesses spurring further construction activity, is expectedto drive the market forward. Additionally, the substantial influx of Foreign Direct Investment (FDI) into the industry, has further strengthened the market creating greater construction opportunities. Given the strong prospects of this industry, Chile is expected to receive FDI amounting to USD 102 billion between 2013 and 2016, tipping the markets significantly reaching close to USD 34.4 billion.

Key market players

Besalco SA, TECSA Holding, SalfaCorp SA and SigdoKoppers SA are a few of the leading Chile construction companies, accounting for the majority of the market share. However, the market is recently seeing a surge of new projects slated to contribute largely to the industry - Papudo Residential Units Development project, valued at USD 100 million, VitacuraCumbres del Condor Residential Complex worth USD 37 million and Rancagua Portal Machali Housing Complex worth USD 39 million being some of the mostlucrative projects expected to be completed within the forecast period.

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Chile construction industry, chile construction companies