Global building floor area grew by 1.7% in 2024, driven largely by construction in emerging economies, including India and Southeast Asia, according to a United Nations Environment Programme (UNEP) report.
The report titled "Building Fast. Falling Short" said growth in buildings in Europe and China has slowed down, but remains robust in India and Southeast Asia.
In India, construction grew from 2024 to 2025 with an annual rate of 11%, reaching a valuation of around $210 billion, driven by strong public and private investment.
The building sector has the largest material footprint of any sector, driving nearly half of global raw material extraction.
Decarbonisation of the buildings and construction sector has slowed, leaving it both a major emissions source and increasingly vulnerable to climate impacts and energy price shocks, the report said.
