Mubasher: A listing of 50 ‘Construction Mega Cities’ for 2019 has been compiled, with a value exceeding $30 billion worth of investment for each city that includes a pipeline of projects, according to a recent statement by GlobalData.
The combined value of the project pipelines in those mega cities, as seen by GlobalData, reaches $5.3 trillion with more than 8,200 projects included at different stages of development, from announced to execution.
“Today, more than half of the world lives in an urban area. By 2050, this number is expected to increase to some two-thirds of the world’s population, according to the United Nations,” according to the statement.
GlobalData predicts that this may lead to an increasing crowd in cities and overuse of resources while presenting companies in the construction industry with key opportunities for growth.
Dubai remains the first on the list of ‘Construction Mega Cities’, with total developments of $611.2 billion, ahead of London in second place with $342.9 billion, and New York in third with projects worth $285.2 billion.
“Moscow slipped to fifth place ($201.4bn) when compared to the 2018 rankings. Seven new cities have made it to the 2019 list, namely Istanbul, Tokyo, Fuzhou, Zurich, Atlanta, Zhengzhou and Las Vegas. The combined value of the project pipelines for those new entrants stand at $379.75 billion, and includes 505 projects at various stages of development,” GlobalData added.
In Addition, “From 2007 to 2025, GlobalData expects the cities’ combined gross domestic product (GDP) to increase by more than $8 trillion to $20.4 trillion. They will be home to an estimated 527 million inhabitants, many being in China and other emerging markets that are witnessing a fast pace of urbanisation.”
In real terms, GlobalData expects average per capita GDP in the mega cities to increase from to $2,263 in 2025 when compared to $1,791 in 2007, in real terms.
Economist at GlobalData, Yasmine Ghozzi, said, “The population of those 29 emerging-region cities will reach an estimated 327 million by 2025, at an annual increase of 1.8% from 237 million in 2007. At the same time, GlobalData projects that the real GDP per capita (measured in real terms) in these emerging urban centers will increase by 2.4% from $520,854 to $820,311 between 2007 and 2025.”