{"id":15034,"date":"2016-06-01T08:01:00","date_gmt":"2016-06-01T01:01:00","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-construction-costs-unlikely-to-rise-for-18-months\/"},"modified":"2016-06-01T10:22:54","modified_gmt":"2016-06-01T03:22:54","slug":"uae-construction-costs-unlikely-to-rise-for-18-months","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-construction-costs-unlikely-to-rise-for-18-months\/","title":{"rendered":"UAE construction costs unlikely to rise for 18 months"},"content":{"rendered":"


\nThe cost of construction projects across the UAE and Oman is not likely to increase at all over the next 12 months, while prices in Doha are only expected to rise marginally as demand has been sapped by declining government spending, according to a new study. Cost consultancy Turner & Townsend’s International Construction Market survey said that the UAE and Oman were two of only three global markets (the other being Beijing) that are not expected to increase this year. Globally, construction costs are predicted to rise by an average of 3.4 per cent in 2016, slowing from 4.3 per cent last year.It said prices in the UAE would also remain flat in 2017. “Expected low cash availability is driving concerns that the coming two years will be challenging for the UAE economy,” the report said.Despite this, it added that authorities will encourage more private sector participation in schemes to continue developing infrastructure, and that Dubai has defied the rest of the market by continuing with a series of ambitious projects. Muscat, meanwhile, is undergoing “a year of austerity” in 2016, which has been reflected in weak consumer confidence and a lack of demand for residential property.”The next two years will be challenging given the level of cash fluidity,” the report said.”Nevertheless, the Omani government’s ninth five-year plan (running from 2016-2020) has set out major investment plans in key sectors such as manufacturing, transportation, tourism and mining, with over 500 programmes and policies to commence.”In Qatar, meanwhile, construction costs are expected to increase by 1-2 per cent this year. It has a large backlog of ongoing work, even if tenders for new projects have fallen away in recent months. Demand is expected to pick up again as soon as commodity prices recover so that projects can complete in time for the Fifa 2022 World Cup.The world’s most expensive construction markets are Zurich, New York and London, although the tech sector-dominated cities of Seattle and San Francisco are catching up. “Two macroeconomic factors – the sharp fall in oil prices and China’s slowdown – have rippled across the global construction industry over the past year and triggered a rapid polarisation,” said Steve McGukin, the managing director of Turner & Townsend’s real estate business.”Some regions are now facing acute overstretch, with construction demand outstripping what the industry is able to supply. Meanwhile, in markets with a heavy reliance on either trade with China or on commodities exports, both demand and levels of investment have fallen.”mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…UAE construction costs unlikely to rise for 18 months<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The cost of construction projects across the UAE and Oman is not likely to increase...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-15034","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-3Uu","jetpack-related-posts":[{"id":55531,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-wins-dh1-46bn-contract-to-build-2020-tower-in-dubai\/","url_meta":{"origin":15034,"position":0},"title":"Arabtec wins Dh1.46bn contract to build 2020 Tower in Dubai","date":"May 21, 2017","format":false,"excerpt":"\r Arabtec said it won a Dh1.46 billion contract to build the 2020 Tower beside Dubai's main highway.The mixed-use tower is being developed by Wasl Asset Management (Wasl) on a site at Sheikh Zayed Road on the opposite side to Dubai Mall.The 63-storey, 300m-high building, previously known as Wasl Tower,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":55535,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabtec-wins-dh1-46bn-contract-to-build-tower-in-dubai\/","url_meta":{"origin":15034,"position":1},"title":"Arabtec wins Dh1.46bn contract to build tower in Dubai","date":"May 21, 2017","format":false,"excerpt":"\r Arabtec said it won a Dh1.46 billion contract to build the wasl Tower beside Dubai's main highway.The mixed-use tower is being developed by Wasl Asset Management (Wasl) on a site at Sheikh Zayed Road on the opposite side to Dubai Mall.The 63-storey, 300m-high building, will house a Mandarin Oriental\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41402,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-to-reclaim-crown-from-saudi-arabia-as-biggest-construction-market-in-region\/","url_meta":{"origin":15034,"position":2},"title":"UAE to reclaim crown from Saudi Arabia as biggest construction market in region","date":"January 21, 2017","format":false,"excerpt":"\r The Middle East's construction market is set to grow at a faster pace than any other region in the world this year, according to analysts BMI Research.The firm has published a paper on the Mena infrastructure sector in which it argues that buoyant markets in the UAE, Qatar, Oman\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46047,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uk-builders-muted-on-prospects-for-gulf-construction\/","url_meta":{"origin":15034,"position":3},"title":"UK builders muted on prospects for Gulf construction","date":"March 1, 2017","format":false,"excerpt":"\r The UK construction company Carillion has said that it expects the pace of new contract awards in the Middle East to remain slow this year amid a low oil price environment.The company, which operates in the UAE and Oman through a pair of long-standing joint ventures with local partners,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46071,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uk-builder-carillion-muted-on-prospects-for-gulf-construction\/","url_meta":{"origin":15034,"position":4},"title":"UK builder Carillion muted on prospects for Gulf construction","date":"March 1, 2017","format":false,"excerpt":"\r The UK-based construction company Carillion has said that it expects the pace of new contract awards in the Middle East to remain slow this year amid a low oil price environment.The company, which operates in the UAE and Oman through a pair of long-standing joint ventures with local partners,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":38241,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mortgage-costs-will-rise-but-not-immediately\/","url_meta":{"origin":15034,"position":5},"title":"Mortgage costs will rise, but not immediately","date":"December 16, 2016","format":false,"excerpt":"\r Mortgage costs in the UAE will increase after the US Fed's rate rise and are forecast for further rises next year. But that is unlikley to deter a recovery next year in property prices, particularly in Dubai.The US Federal Open Market Committee decision to raise rates for the the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/15034"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=15034"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/15034\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=15034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=15034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=15034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}