Complex Made Simple

Falling prices of construction materials accelerates completion of projects

Steel and cement costs fell between 30 and 35 per cent during last four years

The decline in the prices of construction materials, particularly steel and cement, contributed to real estate companies rushing to complete their projects and to accelerate the implementation of projects under construction.

Real estate experts reported that the prices of construction materials have fallen by between 30 per cent and 35 per cent during the last four years (2011-2015), which reduced the cost of building and construction projects that have been implemented during this period by 20 per cent, compared with the four years that preceded it.

Most real estate companies consider these prices as an opportunity to reduce the costs of their projects, in the absence of guarantees that these levels will be maintained in the coming years, reports UAE-based Aliqtisadi.

Tarek Metwally, CEO of Albania Real Estate, said: “despite the drop in the prices of the building materials globally, the rate of decline in the final cost of building and construction varied significantly from one emirate to another due to the variation in operating expenses.”