Linesight’s latest Construction Market Insights report for APAC and GCC provides an in-depth assessment of the construction market across key economies including Australia, India, Japan, Malaysia, Singapore, South Korea, Taiwan, KSA, and the UAE, with insight into the conditions shaping delivery into 2026.
The report brings together macroeconomic analysis, construction output trends, construction inflation, commodity movements, and supply chain conditions, helping clients understand where growth is accelerating, where pressure remains, and how delivery strategies must adapt in an evolving global market.
APAC and GCC enter 2026 with strong growth fundamentals supported by macroeconomic stability, public and private investment, and a resilient construction pipeline. Renewable energy, transport, and digital infrastructure continue to drive demand, while tariffs, labour constraints, supply chain volatility, and global demand uncertainty remain key risks.
This report examines:
- The macroeconomic outlook shaping construction demand across APAC and GCC into 2026
- Where construction activity is expanding, and where headwinds are impacting delivery
- Construction inflation trends, labour constraints, and cost drivers across major markets
- Commodity movements and their implications for project budgets and procurement
- Supply chain performance, lead times, and procurement certainty amid tariff volatility
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Core market indicators
Key indicators providing context on the economic conditions, market activity, and cost dynamics influencing construction delivery across APAC and GCC.
The macroeconomic outlook for APAC and GCC shows continued resilience into 2026, despite global trade tensions and tariff pressures. Growth forecasts remain positive across most markets, supported by domestic demand, policy easing, and continued investment. Inflation is expected to remain moderate across APAC, while GCC inflation is projected to stay low and stable, supported by subsidies and currency pegs.
Construction growth is expected to remain strong across most markets into 2026, underpinned by investment in renewable energy, transport, and digital infrastructure, including data centres and semiconductors. The UAE and KSA continue to see robust activity linked to national development programmes, while India, Malaysia, and Singapore remain growth leaders. Labour shortages, rising costs, and tariff-related supply chain disruption continue to challenge delivery across mission-critical and infrastructure programmes.
Commodity pricing moderated in 2025, easing inflationary pressures in parts of the region, although volatility persists, particularly for metals. Copper is forecast to rise into 2026 due to supply disruption and demand from electrification and renewables. Steel prices are declining due to global oversupply, offering short-term relief, while aluminium and cement remain exposed to upward pressure driven by infrastructure and clean energy investment.
Supply chain conditions stabilised in 2025, supported by easing commodity prices, improved outlooks, and increased competition. Lead times reduced in several packages, although any available manufacturing capacity is quickly absorbed due to sustained demand. Tariff-related volatility and reliance on components sourced from the US remain key risks for procurement certainty and lead times as the region moves into 2026.
