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.
- Another red flag: a massive housing shortage potentially awaits the GCC
- Changing the landscape: why exactly are Arab investors buying property in London?
- The forgotten rich: how and why Jordanians are spending billions in property markets abroad
- From palaces to engine-making: Morocco's stability is attracting billions in foreign investments
- The IS' new money-making scheme: auctioning off stolen houses
- Building material prices in Abu Dhabi creep up in Q2
- Migrant labor exploitation? Average cost of construction labor drops further in UAE.
- Roll up, roll up, Construction materials sale! Prices of building products in Abu Dhabi down
- Worth a gasp? Abu Dhabi’s inflation already up 2.1% in 2014's first two months
- Inflation reaches 3.6% in Jordan