Despite the fact that construction works have resume again with the developers pushing for the rapid delivery of commercial real estate (especially apartment buildings and industries) the construction industry continues to is generally under pressure and "hits" from different sides. Commercial construction companies face a severe shortage of basic materials. They are also dealing with labor shortages and rising prices.
According to industry data, construction companies that specialize in commercial real estate face a serious shortage of basic raw materials, as well as manpower. "The lack of materials is a big challenge. Two basic materials are currently missing from construction sites worldwide. "The structural steel and insulating materials with the deliveries that were from 12 to 16 weeks are now in 30 weeks or more", say factors of the construction industry. They say that some developers choose to pre-store building materials and then give them to contractors to make sure they can meet the schedules they have set.
As they say where they had "paused" the works during the previous 18 months of the pandemic, today they see new opportunities again, mainly in the warehouse sector, but also in the supply chain which is inextricably linked to the rapid growth of e-commerce. "The pandemic showed the weaknesses we have had so far in the supply chain and made companies think about how many stocks they had in their warehouses and how this was eventually overturned in all countries.
During the pandemic, demand for products grew so rapidly that it "exhausted" the logistics industry. "This has increased the further need for new spaces," say the same sources. At the same time, market experts "see" a decline in the retail sector and a stable picture in the new developments of office real estate.
Real estate executives expect that the increased demand will continue next year, while in 5 years the construction industry will continue to grow rapidly.
