Complex Made Simple

GCC is pouring billions into construction for second consecutive year

Last year’s Onsite report on GCC construction in 2017 claimed to have collective awards of $148 billion, pretty much what’s expected for 2018.

The GCC is expected to have $149 billion worth of projects this year, of which the UAE is contributing a third of, according to a Venture Onsite report.

Abu Dhabi property prices report reveals “Mixed Trends”

Which country is making an impact?

The $149 billion will be distributed as follows:

$79 billion is going for building construction and that’s 10% more than 2017.

Some $45 billion are going for energy projects.

Want a pay raise this year? You’ll be lucky

Lastly, $25 billion will be geared for infrastructure projects.

Saudi ranks second in 2018 with $40 billion in expected project awards.

The country contributing most to the $149 billion is the UAE, with $50 billion, of which $37 billion is being used in building construction.

The remaining $13 billion will be used for energy and infrastructure awarded.

But growth in the UAE constrcution market is almost non-existent, why?

UAE making efforts to support developing countries

Growth is stumped

53% of the $149 billion will be going to construction projects.

According to a report published by Phidar Advisory, transactions of completed homes fell 24% from the 10-year average previously.

Moreover,  people do not want to buy or rent expensive apartments.

Hussein Sajwani, the owner of 72% of Damac Properties, is not worried.

He said, in a recent interview, that if a client was so adamant on renting a lower priced house, then even if a landlord disagrees there is plenty of available vacant property, and a client can always find what he or she is looking for.