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.
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.
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?
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.