The UAE’s construction market is expected to put back to near full capacity with a number of megaprojects in the pipeline and the ramping up of social infrastructure spend, according to a report.
It was reported that the UAE has experienced an altering thrust of activity over the previous decade with 2009 beyond being hard years for the market. The vibrant has modified from a stage of negative to low inflation over the last few years to a time of modest increase. The market is ultimately showing real signs of recovery and potential development suggesting that the construction market will remain robust in 2014.
The study takes into account the UAE’s approximated real gross domestic product (GDP) growth, accelerated momentum across industry divisions, market conditions and construction tender price levels. The study also stated that the construction prices in the UAE are set to increase by 4 to 5% over the duration of the year and almost 6% in 2015.
Moreover, the information underlines key differences between the emirate of Abu Dhabi and Dubai as both cities are the country’s progress drivers. Dubai’s real estate market is more robust and sustainable even as Abu Dhabi’s market is stable. On the other hand, the report reveals that the capital may amplify construction spend in the latter half of 2014 and early 2015.
Report states that they are seeing tenders in the market covering the full variety of projects as well as large scale programmes and also smaller procedures right down to the small fit out work. To this level, the market is proving a dynamic profile with chances for SME and large worldwide contractors and joint business enterprises. Likewie, the supply chain at all levels is considering resilient progress across the range of proposals.
The number of pronounced and designed projects in the UAE in 2014 is estimated to the amount of US$ 315 billion, and as of May 2014, US$ 212 billion worth of construction projects are presently under construction.