Reduction of construction output forecast in the APAC region due to weak residential 11/2025

by Robin Huth

Overview of the latest revisions to the construction‑output forecasts for the APAC region, based on the latest update of our Global Building Monitor
by Robin Huth | B+L

On the next slide you can see the projected development of total construction output from 2022 through 2030. The previous update was made three months ago (shown in grey for Q3 2025), while the most recent figures - added in November 2025 - are highlighted in red.

The key changes affect the year 2025, where we have cut the growth estimate from 0.8% to 0.4%, and also the outlook for 2026, which has been lowered. The primary driver of these revisions is weaker‑than‑expected residential construction across most countries in 2025. In China, for instance, the anticipated boost from government support programmes and the recent decline in interest rates did not materialise, so the second half of the year is expected to mirror the subdued performance of the first half.

Japan also required a substantial downward adjustment because its 2025 construction activity is showing a pronounced slowdown.

Overall, the slowdown in residential building is evident throughout the APAC region. However, not all markets are moving in the same direction. Non‑residential construction remains relatively stable in several economies, notably India, Vietnam and Thailand, where activity is holding up better than the residential sector.

That summarizes the reasons behind the recent forecast revisions.