UAE market sources have reported that the Emirates’ construction sector is currently experiencing significant price decreases, dropping by nearly 50 to 60 percent, according to Al-Bayan. This shift has made construction of commercial and residential projects in the region extremely attractive for investors.
The Secretary General of the Engineers Association, Hussein Solaiman, attributed the fall to aggressive competition amongst both local contracting companies, as well as amongst raw materials manufacturers for the construction industry.
Market sources cited that volatility in the sector is nothing new, with prices fluctuating significantly in relatively short periods over the past few years. Per foot building costs stood at 40 Emirati dirhams ($11) in 1975, and then doubled to Dh 80 in 1980.
By 1985, costs had dropped once again to only Dh 60. Costs then jumped to Dh 150 per foot, only to drop again to Dh 85 in 1994. Record prices were hit in 2000, when per foot construction costs reached Dh 250 where they remained through most of 2001, then decreased once again to their present levels. ― (MENA Report)
© 2001 Mena Report (www.menareport.com)
