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Infrastructure (Economics)

Macau Construction Market to Slow Down Due to Gaming Sector Struggles

Strategic Insights

— 2 min read

Macau's construction industry, driven mainly by the gaming sector, is expected to slow down significantly in 2025, from 5.6% in real terms in 2024 to 3.8%. This decline is attributed to a reduction in profit margins from the gaming sector, which is a dominant driver of Macau's economy. The gaming tax revenue rose by just 0.2% YoY in the first quarter of 2025, contributing to lower-than-expected government revenues. Furthermore, the International Monetary Fund (IMF) revised down Macau's economic growth projections for 2025 from 7.3% in October 2024 to 3.6%, citing a softer-than-expected gaming recovery.

Key Takeaways:

  • The Macau construction industry is expected to slow down in 2025 due to a decline in profit margins from the gaming sector.
  • The gaming tax revenue rose by just 0.2% YoY in the first quarter of 2025, representing 88% of the government's total revenue.
  • The International Monetary Fund (IMF) revised down Macau's economic growth projections for 2025 from 7.3% in October 2024 to 3.6%.
  • The construction industry in Macau is estimated to register an average annual growth rate of 4.1% from 2026 to 2029, supported by investments in transport, electricity, and housing infrastructure projects.
  • Macau International Airport Company Limited (CAM) reported a 24% increase in total revenue for 2024, reaching MOP1.5 billion ($185 million).
  • Passenger traffic at Macau International Airport exceeded 7.6 million in 2024, with nearly 60,000 flight movements.
  • CAM initiated a major land reclamation project in November 2024 to expand the airport, with completion targeted by 2030.
  • The report provides historical and forecast valuations of the construction industry in Macau, featuring details of key growth drivers.
  • The report segments the market by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector.
  • The report analyzes the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

Statistics:

  • Macau construction industry growth rate: 5.6% in real terms in 2024 and 3.8% in 2025.
  • Gaming tax revenue growth: 0.2% YoY in the first quarter of 2025.
  • Government revenue contribution: 88% of the government's total revenue.
  • Economic growth projections: 7.3% in October 2024 and 3.6% in 2025.
  • Average annual growth rate of the construction industry in Macau: 4.1% from 2026 to 2029.
  • Total revenue of Macau International Airport Company Limited (CAM): MOP1.5 billion ($185 million) in 2024.
  • Passenger traffic at Macau International Airport: 7.6 million in 2024, with nearly 60,000 flight movements.

Sources:

  • Macau Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)
  • Gaming Inspection and Coordination Bureau
  • International Monetary Fund (IMF)
  • Macau International Airport Company Limited (CAM)
  • ResearchAndMarkets.com
  • Businesswire.com

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