Understanding local market nuances is critical to the success of any construction project. Here are some things you need to know when managing real estate projects in Asia’s emerging markets. To download your free copy of Who's protecting your blindside? Construction Management: Protecting your business from project risk, please visit: http://bit.ly/1hpETvT To learn more about JLL's project and development services in APAC, please visit: http://bit.ly/1iEasVh

1. Construction
Management
Risky Business: 12 Surprising Facts About Construction in Emerging Markets
Understanding local market nuances is critical to the success of any construction
project. Here are some things you need to know when managing real estate projects
in Asia’s emerging markets.
CONSTRUCTIONGROWTH
9/10 countries
with the strongest
net portfolio
growth forecast
are emerging
markets
44%
38%
31%
12%
20%
13%
16%
11%
8%
INDIA TURKEY RUSSIA BRAZIL UAE MEXICO SAUDI CHINA SOUTH
AFRICA
ARABIA
5%
1%
AUS
US
-12%
UK
The top 8 countries for net portfolio growth are 2-3 times less
transparent real estate markets than mature economies,
such as the US, UK and Australia
In Mumbai
demand for space in the key
CBDs is very strong and
Grade A office stock will
more than double by 2020
China’s 4 largest cities will see construction of
178M sq ft of Grade A office space by 2020
that’s equivalent to
83 Empire State Buildings
x 83
WHERETHINGSGOWRONG
fluctuation in
material pricing
40 - 50% in US
=
construction
projects running
over time or
budget
VS.
most common
cause of cost
over runs
in Malaysia
92% in Malaysia
Smells associated with paint,
new furniture and glue can
cause significant delays when
handing over projects in China
Difficulties importing and delivering
construction materials to site can
cause significant delays in Vietnam
and Indonesia
PROJECTSTAKELONGERANDCOSTMORE
It takes 5 times the number of
procedures to build a warehouse
in India than in Hong Kong
Hong Kong 6 vs. India 35
India 7.6%
Indonesia 4.9%
Vietnam 6.9%
Disputes on projects
in India can take more
than 4 years to be
resolved from filing a
suit to recieving a
payment
High price inflation
forecasts continue to
push up construction
costs across Asia
Asia Pacific 3.5%
Australia 2.6%
Japan 2.1%
$
$
The cost of trade contractors can be up
to 8 times more expensive in China
than in Singapore
USD 21.9/hr
USD 2.8/hr
Do you know what’s really going on?
www.jll.com
© Jones Lang LaSalle 2013
Jones Lang LaSalle, Global Corporate
Real Estate Trends. 2013
Jones Lang LaSalle, Global Real Estate
Transparency Report, 2012
Jones Lang LaSalle, Real Estate
Intelligence Service, 2013
Construction Management Association of
America, Annual Survey of Owners, 2009
International Journal of Advances in
Applied Sciences (IJAAS), March 2012
Canadian Center of Science and Education,
Relationship between factors of construction
resources affecting project cost in Malaysia, 2013
The World Bank, Global logistics performance
index, 2012
The World Bank, Doing Business, Dealing
with Construction Permits, 2013
The World Bank, Doing Business, Enforcing
contracts, 2013
Deloitte, 2013 Global Manufacturing
Competitiveness Report, 2013
IHS, Data Insight 2013, consumer price
inflation, annual growth