Amidst economic turbulence, Argentina's construction industry is defying the odds with a remarkable surge, evidenced by a 7.8% output growth in 2023 and projections pointing toward a $45.2 billion market by 2027.
Key Takeaways
- In 2023, Argentina's construction industry output grew by 7.8% year-on-year, reaching approximately ARS 12.5 trillion in nominal terms, driven by residential and infrastructure segments.
- The construction market in Argentina is projected to reach $45.2 billion by 2027, with a CAGR of 4.1% from 2024-2027, fueled by housing demand.
- In Q4 2023, construction activity index in Argentina increased by 12.3% compared to Q4 2022, per INDEC data.
- Construction employment in Argentina totaled 1.2 million in Q4 2023, up 4.5% YoY.
- Construction unemployment rate dropped to 7.2% in 2023 from 9.1% in 2022.
- Average monthly wage in construction sector was ARS 450,000 in December 2023.
- The Belgrano Route modernization project involves 1,500 km of railway upgrades with a budget of $2.5 billion.
- Argentina's 2023-2027 National Infrastructure Plan allocates ARS 50 trillion to 100+ projects.
- Ezeiza International Airport expansion includes new terminal for 18 million passengers annually.
- Cement prices in Argentina averaged ARS 85,000 per ton in December 2023, up 90% YoY.
- Steel rebar cost reached ARS 1,200 per 12m rod in Q4 2023.
- Portland cement production totaled 12.5 million tons in 2023.
- Public investment in construction reached ARS 3.8 trillion in 2023, 22% of total budget.
- Foreign direct investment in Argentine construction: $1.2 billion in 2023.
- PPP projects in infrastructure: 25 contracts awarded, total $15 billion.
Argentina's construction sector grew significantly in 2023, with strong residential and infrastructure investment.
Building Materials and Costs
- Cement prices in Argentina averaged ARS 85,000 per ton in December 2023, up 90% YoY.
- Steel rebar cost reached ARS 1,200 per 12m rod in Q4 2023.
- Portland cement production totaled 12.5 million tons in 2023.
- Asphalt price index rose 110% in 2023 to ARS 650,000 per ton.
- Imported construction machinery costs increased 25% due to dollar restrictions in 2023.
- Lumber prices for construction wood up 75% YoY to ARS 450 per m³.
- Electrical copper wire price: ARS 15,000 per kg in 2023.
- Glass production for construction: 1.2 million m² in 2023.
- Paint wholesale price index surged 95% in 2023.
- Aggregate gravel cost: ARS 25,000 per m³ average 2023.
- Aluminum profiles for windows: ARS 8,500 per kg in Q3 2023.
- PVC pipes price up 82% to ARS 2,200 per meter.
- Ready-mix concrete average price ARS 180,000 per m³ in 2023.
- Ceramics tile production: 85 million m² in 2023.
- Gypsum board costs rose to ARS 12,000 per m².
- Reinforcing bar imports: 450,000 tons in 2023.
- Construction sand price index +88% YoY.
- Sanitary ware production: 2.8 million units in 2023.
- Bitumen price: ARS 900,000 per ton end-2023.
- Steel sheet for roofing: ARS 1,800 per m².
- Insulation materials cost index up 70% in 2023.
- Bricks production: 4.2 billion units annually 2023.
- Plumbing fittings prices increased 92% YoY.
- Precast concrete elements: production up 15% to 1.5 million tons.
- Door and window frames aluminum: ARS 45,000 per unit average.
- Construction adhesive prices rose 65% in 2023.
- Roofing tiles ceramics: 120 million units produced 2023.
Building Materials and Costs Interpretation
Argentina's construction industry is being rapidly built on a foundation of soaring inflation, where even the air feels priced per cubic meter and every blueprint comes with its own existential crisis.
Employment and Labor
- Construction employment in Argentina totaled 1.2 million in Q4 2023, up 4.5% YoY.
- Construction unemployment rate dropped to 7.2% in 2023 from 9.1% in 2022.
- Average monthly wage in construction sector was ARS 450,000 in December 2023.
- 45% of construction workforce are skilled laborers as of 2023.
- Female participation in construction labor force reached 12.5% in 2023.
- Construction sector added 52,000 jobs in 2023.
- Informal employment in construction was 38% of total workforce in 2023.
- Labor productivity in construction improved by 3.2% in 2023.
- Over 250,000 workers trained via government programs in construction in 2023.
- Construction employment share of total employment is 8.1% in 2023.
- Average hours worked per week in construction: 44.2 hours in 2023.
- Youth employment (18-24) in construction rose to 22% of sector workforce.
- Unionized workers in construction: 65% as per 2023 surveys.
- Construction job vacancy rate was 3.8% in urban areas 2023.
- Migrant workers comprise 15% of construction labor in Buenos Aires, 2023.
- Wage index for construction rose 105% in 2023 due to inflation adjustments.
- 28,000 new apprentices registered in construction training in 2023.
- Labor turnover rate in construction sector: 12.5% annually in 2023.
- Construction engineers employed: 45,000 nationwide in 2023.
- Overtime hours in construction averaged 5.2 hours/week in 2023.
- Safety training covered 80% of workforce in 2023.
- Construction foremen numbers increased 6% to 120,000 in 2023.
- Remote area construction jobs grew 18% in employment terms, 2023.
- Gender pay gap in construction narrowed to 18% in 2023.
- Total registered construction workers: 950,000 in 2023.
- Vocational training enrollment up 25% to 35,000 in construction, 2023.
Employment and Labor Interpretation
Argentina's construction sector is hammering away at recovery, with rising employment, wages, and training numbers, though it still has some structural cracks to fix, like a stubbornly high rate of informal labor and a lingering gender pay gap.
Investment, Finance, and Government Spending
- Public investment in construction reached ARS 3.8 trillion in 2023, 22% of total budget.
- Foreign direct investment in Argentine construction: $1.2 billion in 2023.
- PPP projects in infrastructure: 25 contracts awarded, total $15 billion.
- Bank loans for construction: ARS 1.5 trillion disbursed in 2023.
- Construction bonds issued: ARS 450 billion in local markets 2023.
- ANSES housing fund invested ARS 800 billion in construction.
- Private equity in real estate development: $900 million FDI.
- Government subsidies for construction materials: ARS 120 billion.
- Construction credit growth: 95% YoY to ARS 2.1 trillion.
- Multilateral loans for infra: $4.5 billion from IDB and CAF.
- Tax incentives via Ley de Inversiones Generales drew ARS 600 billion.
- Mortgage lending volume: ARS 350 billion in 2023.
- Construction firms' capital investment: ARS 1.8 trillion.
- Export credit for construction exports: $200 million.
- Green bonds for sustainable construction: ARS 100 billion issued.
- Provincial budgets for public works: ARS 1.2 trillion total.
- Venture capital in proptech: $150 million in Argentina 2023.
- Interest rates on construction loans averaged 65% annual in 2023.
- Fundo Fiduciario de Infraestructura: ARS 400 billion disbursed.
- Crowdfunding platforms raised ARS 50 billion for projects.
- Insurance premiums for construction risks: ARS 180 billion.
- R&D investment in construction tech: 0.8% of sector revenue.
- Leasing for heavy machinery: ARS 250 billion contracts.
- Stock market capitalization of construction firms: ARS 900 billion.
- IMF tranche for infrastructure: $3.1 billion utilized in 2023.
- Corporate bonds by top constructors: ARS 300 billion.
- Microcredit for small contractors: ARS 80 billion.
- Total FDI inflows to construction: up 12% to $1.4 billion.
Investment, Finance, and Government Spending Interpretation
Argentina's construction sector is building its future on a frenetic mix of hyperinflationary local credit, desperate government spending, and cautiously opportunistic foreign capital, creating a precarious tower of ambition where the interest rates alone could give you vertigo.
Major Projects and Infrastructure
- The Belgrano Route modernization project involves 1,500 km of railway upgrades with a budget of $2.5 billion.
- Argentina's 2023-2027 National Infrastructure Plan allocates ARS 50 trillion to 100+ projects.
- Ezeiza International Airport expansion includes new terminal for 18 million passengers annually.
- Vaca Muerta gas pipeline (Nestor Kirchner) is 563 km long, costing $2.5 billion, completed 2023.
- Buenos Aires subway Line B extension adds 2.7 km with 2 new stations.
- Paraná Medio Highway project spans 640 km, budget ARS 1.2 trillion.
- 1,000 MW solar parks under construction in northern Argentina, total investment $800 million.
- Cordoba's high-speed rail feasibility study for 300 km line to Buenos Aires.
- Rosario-Victoria Bridge rehabilitation project cost ARS 15 billion.
- Patagonia wind farm cluster: 500 MW capacity, 12 projects ongoing.
- Buenos Aires port expansion for 2 million TEUs annually.
- National Water Plan includes 50 dams and irrigation systems, $3 billion budget.
- Mendoza aqueduct project: 200 km pipeline for irrigation.
- 5G network rollout involves 10,000 km fiber optic deployment.
- Tucuman sugar mill modernizations: 15 facilities upgraded.
- Lithium extraction infrastructure in Salta: 3 new plants, $1.5 billion.
- Santa Fe flood control dikes: 120 km constructed.
- Aeroparque Jorge Newbery runway extension to 2,200 meters.
- National Road Network Plan: 5,000 km repaved in 2023.
- Biocombustibles plants expansion: 20 facilities, capacity +30%.
- Chubut wind farm: 200 MW, largest in Patagonia.
- Housing plan ProCreAr delivered 45,000 units in 2023.
- Gasoducto Norte: 1,700 km pipeline under construction.
- 30 hospitals under construction nationwide, ARS 500 billion budget.
- Corrientes bridge over Paraná River: 12 km length.
Major Projects and Infrastructure Interpretation
Argentina is laying down a massive industrial foundation from Patagonia to the Paraná, betting billions on rails, roads, and renewables to rewire its economic future.
Market Size and Growth
- In 2023, Argentina's construction industry output grew by 7.8% year-on-year, reaching approximately ARS 12.5 trillion in nominal terms, driven by residential and infrastructure segments.
- The construction market in Argentina is projected to reach $45.2 billion by 2027, with a CAGR of 4.1% from 2024-2027, fueled by housing demand.
- In Q4 2023, construction activity index in Argentina increased by 12.3% compared to Q4 2022, per INDEC data.
- Argentina's construction sector contributed 6.2% to GDP in 2022, up from 5.8% in 2021.
- Residential construction segment accounted for 42% of total construction output in Argentina in 2023.
- Commercial construction grew by 9.5% in 2023, representing 28% of the market.
- Infrastructure construction output rose 15.2% YoY in 2023 due to government spending.
- Total construction contracts awarded in Argentina in 2023 totaled ARS 8.9 trillion.
- The market size of Argentina's construction industry was valued at $38.7 billion in 2022.
- Forecasted growth for Argentina construction is 3.8% in 2024.
- Industrial construction segment share was 15% in 2023.
- Construction gross value added increased by 6.5% in real terms in 2023.
- Argentina's construction market expected to grow at 4.5% CAGR through 2028.
- Public construction works expenditure reached ARS 2.1 trillion in 2023.
- Private construction investment grew 8.2% in 2023.
- Construction sector turnover index rose 11.4% in December 2023.
- Energy and utilities construction segment expanded by 18% in 2023.
- Overall construction market volume hit 120.5 index points in 2023.
- Projected market size for 2025 is $52.3 billion.
- Civil engineering works grew 14.7% YoY in 2023.
- Building construction permits issued increased by 22% in 2023.
- Construction industry's nominal growth was 112% in 2023 amid inflation.
- Non-residential construction output up 10.3% in 2023.
- Total sector revenue forecasted at ARS 18.7 trillion in 2024.
- Construction PMI averaged 52.1 in 2023, indicating expansion.
- Heavy construction segment grew 16.8% in Q3 2023.
- Market projected to add $10 billion by 2027.
- Construction value added to GDP was ARS 4.2 trillion in 2023.
- Annual growth rate stabilized at 5.9% for 2024 forecast.
Market Size and Growth Interpretation
While inflation paints a staggering 112% nominal growth figure, the real story is a bullish, brick-by-brick expansion, with residential demand and government infrastructure spending steadily building a sector that now proudly contributes over 6% to Argentina's GDP.
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