Abu Dhabi: An excess in supply might reduce the building material costs last month
The average prices of several building materials in Abu Dhabi fell in January compared with December with the largest fall recorded in the average price of steel, which declined 5.9 percent, Statistics Centre Abu Dhabi (Scad) said yesterday.
The prices of other building materials such as PVC pipes fell 5.6 percent, while transport equipment rents were down 3.9 percent and the prices of wires for apartments dropped 3.6 percent, Scad said in a statement. However, the prices of stainless steel sinks increased 5.7 percent in January, while those of power cables rose 5.4 percent from a month ago. Over the month, cement prices rose 4.2 percent, while aggregates and sand prices rose 2.8 percent.
“The figures show the demand for building materials is slackening which could be an indication the local economy may be slowing somewhat. There could also be an excess of supply of building materials which may be bringing the prices down,” Dr Mohammad Amerah, an Abu Dhabi-based economist said, commenting on the Scad report.
The report also reviewed changes in building material prices last month compared with January 2011 and concluded that transport equipment rents rose 30.7 percent year-on-year, while the prices of aggregates and sand jumped 21.4 percent.
- Six savvy tips for choosing a real estate agent
- 'Selective softening': How Dubai's stabilizing property prices are in no way inclusive
- Abu Dhabi's Louvre: how far has it come and how far will it go?
- Saudi Arabia is getting creative about tacking its housing shortage
- Call it twisted, but it's actually cheaper to buy than rent property in Dubai