Construction and real estate boomed in 2005 – 2009 which crashed as a result of the global economic crisis but a high ranking official of local developer Meraas said that the progress is real and different this time.
A construction panel in MEED’s Destination Dubai 2020 conference which was held on January 29th compared today’s construction and real estate boom to the one that happened in 2005. It was said that the master plans and announcements are completely different from the past and that the projects being started for the Dubai Expo 2020 are non-speculative and business driven. It is stressed in the conference that the demand for the said type of projects is expected to protect the market from another bubble.
Another high ranking official of UK’s Atkins Middle East office said that hiring labor is one of the key challenges confronting companies in the current construction market.
“The thing I lose sleep over most is where I am going to get the talent to build these schemes,” said the official.
He also added that the other difficulties that may need to be overcome in the run-up to building the infrastructure required to host the Expo are increases in the cost of living for employees and supply of materials.