Product category:
Surveyors and consultants
News Release from: EC Harris | Subject: 'UAE Construction Cost Bulletin',
Edited by the Buildingtalk Editorial
Team on 15 December 2006
UAE construction costs driven upwards
Construction costs in Dubai rose by more than 28 per cent in eight months according to the new 'UAE Construction Cost Bulletin', published by EC Harris.
Construction costs in Dubai rose by more than 28 per cent in the first eight months of the year due to a 32 per cent increase in material prices, according to the new 'UAE Construction Cost Bulletin', published by international property consultancy EC Harris The cost bulletin is the first of a quarterly publication which focuses on the construction market in the UAE
This article was originally published on Buildingtalk on 21 Jan 2005 at 8.00am (UK)
Related stories
Report into high rise buildings
High-rise residential towers are rapidly becoming a developing feature of the property market across the UK says a report by Knight Frank and EC Harris.
Record output for the residential market
The prospects for the private residential market across Europe are positive, according to leading international consultants EC Harris.
The inflation figures come from a study compiled by EC Harris, which pulls together price data for key building materials and labour trades in Dubai.
The figures were applied to a cost model that reflects their relative importance within the building process.
Despite the surge in costs, material prices are starting to flatten, and even fall, in the region, and an overall increase of 20 per cent in prices is expected for the year as a whole.
Further reading
EC Harris project managers for Enfield Academy
EC Harris has confirmed its partnership with the Oasis Trust for the construction of their flagship Enfield Academy in London.
EC Harris helps launch B and Q Hong Kong
EC Harris is playing a major role in the opening of B and Q Asia's first-ever store aimed at the home improvement market in Hong Kong.
Looking further ahead, prices are forecast to rise by 1 - 1.5 per cent per month over the next 18 months, as the high level of demand continues to keep margins high.
Commenting on the figures, Mark Prior, Regional Managing Director for EC Harris in the UAE said: "The Dubai construction market has continued to record an unprecedented rate of growth in 2006, and the UAE is contributing a large portion of the US$ 1 trillion Middle Eastern construction market.
"Foreign investment and record oil prices are continuing to underpin the booming real estate sector, and significant investment is also proposed for the next three to four years in oil and gas.
Longer term the intention is to develop Dubai as a financial and transport centre in preparation for the day when the oil supplies start to run out.
Meanwhile Abu Dhabi is rapidly expanding with huge tourism, property, industrial, and oil and gas projects planned, which will increase the pressures on the UAE and Gulf Cooperation Council markets.
The current level of activity should ensure that the Middle Eastern region continues to outpace global growth".
He added, "The strong increase in demand for construction related resources in Abu Dhabi and Qatar is adding further pressure on an already overstretched construction supply chain in Dubai.
Current opinion is that demand is unlikely to fall when current and projected schemes are built out.
Although increased activity in other global construction markets and spiralling living and operating costs will provide a financial hurdle to attracting world class resources to UAE".
The bulletin goes on to flag up a number of tools that can be employed by developers, investors, designers and contractors to mitigate the effects of rising prices in UAE and states that by adopting a 'solutions based' approach, value can be enhanced, costs reduced and escalation managed.
• EC Harris: contact details and other news
• Email this article to a colleague
• Register for the free Buildingtalk email newsletter
• Buildingtalk Home Page
Search the Pro-Talk network of sites
