Global building space grew by 1.7% in 2024 alone, adding space five times that of Nairobi or two that of Delhi, four times that of Berlin and New York, or three times that of Rio de Janeiro, driven largely by construction in emerging economies, including India and Southeast Asia, according to the UNEP report.
The report, titled “Build Fast. Palaces,” said building growth has slowed in Europe and China, but remains strong in India and Southeast Asia. In India, the construction sector recorded growth from 2024 to 2025 at an annual rate of 11%, reaching an estimated value of about $210 billion, driven by strong public and private investments.
The construction sector has the largest physical footprint of any sector, driving nearly half of global raw material extraction. The report said that the process of decarbonisation of the buildings and construction sector has slowed, making it a major source of emissions and increasingly vulnerable to climate impacts and energy price shocks.
The 10th edition of the Global State of Buildings report assesses progress across the sector using seven key indicators covering policies, finance, technology and investment aligned with global commitments towards a net-zero emissions path by 2050. Published amid a global crisis in housing and energy affordability, the report highlights how climate action in buildings can reduce energy bills, improve living conditions and enhance resilience to climate impacts, while reducing greenhouse gas emissions.
“Buildings can either lock in climate risks or provide safer, healthier and more affordable living conditions,” said Inger Andersen, Executive Director of UNEP. “With half of the world’s buildings yet to be built or renovated by 2050, governments have a critical opportunity to advance resilient, zero-emission construction through better policies, laws and investments.”
Every day, the world builds an estimated 12.7 million square meters of floor space – roughly equivalent to adding the entire city of Paris in new floor space almost every week.
In 2024, the global construction area expanded by 1.7% to reach 273 billion square metres. “This rapid growth has been largely driven by the construction sector in emerging economies, including India and Southeast Asia. The construction sector now accounts for nearly 50% of global materials extraction, 37% of global emissions, and 28% of global energy consumption,” the report said.
The report notes that since 2015, the energy intensity of buildings globally – measuring a building’s annual energy consumption relative to its size – has fallen by 8.5%. Green building certifications have almost tripled, and there has been a rise in certifications in India as well.
The report said that in 2024, renewable energy sources provided only 17.3% of energy demand in buildings, far less than what is required for the net zero path, while adding that investment in energy efficiency reached $275 billion in 2024, contributing to a cumulative investment of $2.3 trillion since 2015.
“But since 2020, progress has slowed, as the green transition has not kept pace with the rate of construction. To align the sector with a net-zero path, policymakers must accelerate energy efficiency improvements and phase out fossil fuels, while investment in energy efficiency construction must reach $5.9 trillion by 2030, equivalent to $592 billion annually.”
In India, the use of renewable energy sources in buildings is increasing. India has rapidly scaled up rooftop solar through targeted incentives, including through the PM Surya Ghar initiative, which provides households with subsidies and loans for installing rooftop solar, the report said.
