Home 2022, building sector and real estate: No more wasteful spending

GEAB 164

The monthly bulletin of LEAP (European Laboratory of Political Anticipation) - 15 Apr 2022

2022, building sector and real estate: No more wasteful spending

The economic scissors are closing in on the global construction sector. The good old economic model based, to a very large extent, on new construction will soon no longer be sustainable, while another model, based on a more pragmatic approach (maintenance and renovation of existing buildings), is not yet in place to take over.

As an integral part of the global systemic transition, the construction sector, and by extension the real estate sector, represents a significant share of world GDP (12% for construction alone[1]). It is a compendium of environmental, financial, social, demographic, and of course political issues. This preexistent situation has been accentuated by the Covid crisis and is accelerating even more with the Ukrainian crisis. The sector will never be the same again, even if the conflict in Eastern Europe has a peaceful outcome soon.

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