Roll up, roll up, Construction materials sale! Prices of building products in Abu Dhabi down
“The drop ranged from 0.3 per cent for “waterproofing products” to 13.8 per cent for “wires for residential towers”, SCAD said in its monthly report.
Economists attributed the drop in the prices of construction materials to the rise in the value of the US dollar vis-a-vis emerging market currencies. Most of the construction material in the UAE is imported and since the UAE dirham is pegged to the dollar, the gains from a stronger dollar are rubbing off on the UAE currency making the price of imported goods cheaper in the local currency.
SCAD also said a drop was recorded in the average prices of most building materials groups in the second quarter of this year compared with the same period last year. The drop ranged between “0.1 per cent for “paints” and 14.8 per cent for “wires for residential towers”. However, the prices of “wires for small building” increased 9.8 per cent, which the cost of “wires for apartments” rose 8.3 per cent, quarter-on-quarter.
The average prices for diesel and roofing materials, however, remained stable during the second quarter compared to the April-June quarter of last year, SCAD added.
The consumer price inflation in the emirate of Abu Dhabi was 0.9 per cent in June compared with the same month last year, SCAD had said previously.