{"id":898,"date":"2016-01-07T01:14:31","date_gmt":"2016-01-06T18:14:31","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=898"},"modified":"2016-01-06T22:30:24","modified_gmt":"2016-01-06T15:30:24","slug":"dubai-still-a-relatively-cheap-place-to-build-says-arcadis","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-still-a-relatively-cheap-place-to-build-says-arcadis\/","title":{"rendered":"Dubai still a relatively cheap place to build, says Arcadis"},"content":{"rendered":"


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\nGovernment and private sector clients have an opportunity to commission new buildings at bargain rates, according to Arcadis.The company\u2019s latest International Construction Costs 2016 report states that Dubai remains a relatively cheap place to build. It is ranked 18th worldwide in a list of 44 major cities, meaning it is less expensive than cities in Qatar (Doha is 12th) and Saudi Arabia (Jeddah, 16th).
\nMoreover, Ian Williamson, the head of the company\u2019s Middle East buildings division, argued that the cost of building is likely to remain extremely competitive throughout this year.\u201cI think it\u2019s a great year to buy if you\u2019re a client,\u201d said Mr Williamson. \u201cIt\u2019s a shame there are issues on liquidity and funding because it\u2019s a very good time to be doing capital investment. \u201cWith the market being tighter, all contractors and consultants are fishing in a smaller pool for work right across Qatar, KSA and the UAE, which represents 90 per cent of most people\u2019s business in the Middle East.\u201d
\nThe International Construction Costs report stated that the cost of building globally has generally been in decline over the past 12 months as a result of falling commodity prices. Crude oil, iron ore and nickel dropped in price by between 30 and 50 per cent last year, while copper and aluminium have fallen by between 20 and 25 per cent.This presents challenges for GCC markets, where declining oil revenues lead to constrained government budgets and lower infrastructure spending.
\nAnd although oil only makes up about 2 per cent of Dubai\u2019s GDP, its role as the region\u2019s business hub is affected by the fact that investment cash from oil-producing countries such as Russia and Iran also falls away. The report added that the strong dollar (to which the dirham is pegged) has made tourism and property investment more expensive for key Asian investors.Mr Williamson said that labour costs in Dubai are typically \u201c60 per cent or less\u201d than rates in London. Although materials prices can be 20 to 30 per cent higher as a result of import costs, the competitive market in the region means it is a good time to procure building work.
\n \u201cWith the market being tighter, contractors and consultants are fishing in a smaller pool for work right across Qatar, KSA and the UAE, which represents 90 per cent of most people\u2019s business in the Middle East,\u201d said Mr Williamson. \u201cI think with that tightening market, you\u2019re starting to see highly competitive pricing put in. People are having to work to lower margins to maintain volumes.\u201dThe city with the world\u2019s highest building costs is New York, followed by London and then Hong Kong. Of the 44 cities in the Arcadis report, Taipei was the cheapest city in which to build, followed by Bangalore and Bangkok.
\nA report published by Colliers in October stated that construction costs in the UAE had remained flat in 2015, with the lower price of steel offset by an increase in the cost of aggregates, sand, glass and other materials.mfahy@thenational.aeFollow The National\u2019s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Dubai still a relatively cheap place to build, says Arcadis<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Government and private sector clients have an opportunity to commission new buildings at bargain...<\/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-898","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-eu","jetpack-related-posts":[{"id":40382,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-super-tall-towers-in-middle-east-last-year\/","url_meta":{"origin":898,"position":0},"title":"No 'super-tall' towers in Middle East last year","date":"January 12, 2017","format":false,"excerpt":"\r For the first time in a decade, the wider Middle East region failed to deliver a \"super-tall\" tower of more than 300 metres in height, but projections for this year look bright, according to the Council on Tall Buildings and Urban Habitat (CTBUH).Moreover, in the UAE, which usually leads\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27443,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-residential-price-decline-set-to-slow-says-deloitte\/","url_meta":{"origin":898,"position":1},"title":"Dubai's residential price decline set to slow, says Deloitte","date":"September 27, 2016","format":false,"excerpt":"\r Dubai property prices will continue to fall for the rest of the year, but the rate of decline will be slow, according to a new report by Deloitte.In an update to its Middle East Real Estate Predictions report published in January, the Big Four accountancy firm said that residential\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23095,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-remain-flat-as-companies-opt-to-stay-put\/","url_meta":{"origin":898,"position":2},"title":"Dubai office rents remain flat as companies opt to stay put","date":"August 16, 2016","format":false,"excerpt":"\r Demand for office space in Dubai has fallen over the past six months in the wake of the oil price rout and the economic slowdown elsewhere in the Gulf that dampened the need for commercial space, Cluttons said in a report. 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