The UAE's construction industry is expected to hit AED 278.7 billion by 2024 with a CAGR of 6.2%, according to a report by leading research firm ResearchAndMarkets.

Over the next eight quarters, the report expects growth across industrial, commercial, residential and institutional sectors in UAE to remain impacted due to the economic downturn caused by the Covid-19 outbreak, it stated in the firm's latest "UAE Construction Industry Databook Series."

Even though near term challenges, medium to long term outlook remains positive. Over the short term, investment in the construction sector will be driven by government spending in the infrastructure sector.

The residential construction sector in value terms increased at a CAGR of 6.7% during 2015-2019, it added.

According to the report, the commercial building construction market in value terms is expected to report a CAGR of 9.1 per sent over the forecast period.

The infrastructure construction industry was estimated to be AED89.8 billion in 2019, posting a CAGR of 7.5% during review period, stated the ResearchAndMarkets report which covers Dubai, Fujairah, Umm Al Quwain, Abu Dhabi, Sharjah, Ajman, Ras al-Khaimah, Khor'fakkan, Al Ain, Dibba and Al Fujairah.

The report also focuses on combining industry dynamics with macro-economic scenario and changing consumer behaviour to offer a 360-degree view of the opportunities and risks.