An inside look into why GCC construction projects are almost doubling this yaer
Construction projects across all building sectors worth $128.46 billion are expected to be completed in the GCC by end of this year, hitting a 92.06 per cent increase compared to 2013 ($66.89 billion), a report said.
The expected expenditure on interiors and fit-outs is $9.57 billion, 29.63 per cent more than what was spent in 2013, said a bi-annual study conducted by Ventures ME. The findings were revealed by dmg events on the eve of the inauguration of Index exhibition, the leading Mena interior design trade show.
The research analyses both the building construction and the fit-out and interiors markets focusing on six main sectors – residential, commercial, hospitality, retail, educational, and medical – in each of the GCC countries.
Out of a total market worth $128.46 billion, the medical, residential and hospitality sectors will count for over half of the market with shares of 24.43 per cent, 23.34 per cent and 22.64 per cent respectively. The three sectors leading the way will be followed by the commercial (12.51pc), educational (5.86pc) and retail (1.09pc) sectors, it said.
Compared to the previous year, the hospitality and medical sectors will register the biggest growth; the value of completed hospitality building projects is forecast to jump from $3.68 billion to $29.08 billion (+690.03pc) whereas the value of completed buildings for medical use will go up 725.19 per cent to a value of $31.38 billion ($3.80 billion in 2013).
Saudi Arabia will be the country where most of the completed buildings will be located particularly in the residential ($34.39 billion), hospitality ($3.85 billion), commercial ($7.97 billion) and educational ($4.38 billion) sectors.
Qatar will register retail projects to be completed for a total value of $522 million moving up in the country’s ranking from the fifth position in 2013 to the top one.
The UAE will be at the high end of the rank when looking at the healthcare sector; out of a total market forecast of $31.38 billion, the UAE will account for $3.13bn – a remarkable difference compared to the value of completed projects in 2013 ($227m).
Out of an overall estimated market value of $9.57 billion, the residential sector will be the largest spender with $3.30 billion (34.47pc), followed by the hospitality sector with 20.24pc of the market and $1.94 billion spent in value and the commercial sector with $1.77 billion (18.48pc).
When compared to 2013 figures, the sectors that are expected to register the highest increase will be hospitality, up 133.88 per cent to $1.94 billion, and the medical sector that will almost double in value from $304 million to $607 million.
Saudi Arabia will rank in the top position when looking at the hospitality ($866 million), commercial ($876 million) and educational ($350 million) sectors. The healthcare and residential sectors will see UAE at the top of the rank with $251 million and $1.31 billion respectively. Of the total $315 million estimated interiors and fit-out retail investment, Qatar will be the major spender with $117 million.
Index International Design Exhibition will kick off tomorrow (May 19) at the Dubai World Trade Centre and run until May 22, bringing to the region the latest international innovations and trends in interior design and fit outs. Spread over a total of 40,000 sq m of floor space from Halls 1 to 8, the list of exhibitors covers 700 companies from 44 different countries.
- World Bank loans Egypt $550M to clean up the countryside
- Al Bustan Centre & Residence wraps up a successful participation in ATM 2015
- The reality of realty: inbound property investments in GCC 'far less' than outbound
- Dubai's hospitality sector is a sound investment
- Quiet and wise: How Oman is transforming itself into a major logistics hub
- An inside look into why 2014 will mark Sharjah's biggest project spending year ever
- An inside look into just how far GCC-China business ties are going
- An impending infrastructure 'explosion': GCC construction sector to hit $86 billion in 2014
- GCC Investment Strategy and Sectors Outlook for 2006
- A new 'gold rush'?: construction projects in the UAE to hit $315 billion In 2014