Building projects worth $228bn underway in UAE
A total of $228 billion (AED836.7 billion) of building projects are currently underway in the UAE, according to research. The research calculated the combined value of 7,488 “active” commercial and residential building projects in the emirates that are in the concept, planning, design, construction or on-hold stages. It did not include education, healthcare, hospitality and retail schemes.
The projects analysed constitute 82 percent of all active projects in the UAE’s construction sector and 44 percent of the total estimated value, according to the report from BNC (Business News for Construction) Intelligence. It said that of the 7,488 projects, 1,059 projects fall in the high-rise category rising above 15 floors, and have a combined project value in excess of $100 billion (AED367 billion). There were 2,483 mid-rise projects with between four and 14 floors, with a value of $66 billion (AED242.22 billion), while the number of low-rise projects stood at 3,946 with a value of $61.9 billion (AED227.12 billion).
Of the total, 5,276 projects worth a combined $99.4 billion (AED364.79 billion) were under construction or in the tendering phase, the report said.
It added that 1,378 buildings, worth $89.9 billion (AED330 billion) were on hold at the time of conducting the research.
Avin Gidwani, CEO of BNC Network, said: “Most of these building projects are expected to be completed by October 2020 – before the World Expo 2020 as the country gears up to handle the biggest inbound tourist rush unprecedented in its history.”
In June, the number of active building projects in the UAE increased by 3 percent compared to May, 2017, but in terms of value there was no significant movement, BNC said.
Gidwani added: “The strong project pipeline is a reflection of the healthy construction sector, despite weaker global economic growth scenario – an indication that the UAE real estate and construction sectors are defying the global trend.
“While the lower oil price might have dampened the investor appetite, developers and contractors are going ahead with the building projects as planned. A number of these buildings are being developed to meet the anticipated rush during Dubai Expo 2020.”
