An increase of 6% is expected in the Construction labor costs this 2014 as the industry regains to full capacity.
As of May, some building projects amounting to $212 billion were underway across the country and over the last quarter several new major property developments have been announced. The Government of Dubai expounded that all new and on hand construction projects will be expedited to catch up before the upcoming Expo2020.
Influenced by the Expo drive, the growth of the industry could increase tender prices by as much as 5% to 6 % this year and by 2015 compared to the 4% drop down last 2013. Inflationary demands are expected to rise across the industry this year as projects shift from the consultancy supply chain to the construction supply chain.
The Abu Dhabi construction market maintained its stability on the first half of this year with more projects expected to be established in the second half, increasing construction expenditures for the remaining part of this year and into 2015. The entry of people from the Arab Spring is expected to drive social and infrastructure spending.
Even though the demand in the construction industry is on the rise, expenses have been controlled by softer basic commodity prices with copper, cement and rubber process falling down over the past year.