New report says completed projects in 2013 to hit $81.6bn, up from $68.7bn last year
Building projects worth more than $68.7bn were completed in the GCC in 2012, according to a new report, compared to $46.5bn in the previous year.
The report also forecast a further 19 percent sector growth in 2013, with completed construction projects set to reach $81.6bn.
The value of new construction projects in the GCC is also expected to rise in 2013, with projects valued at $64.5bn set to be awarded to contractors over the coming 12 months.
This figure represents a sharp increase, up by a third, on the value of projects awarded in 2012 ($48.4bn), the report added.
The report was commissioned by DMG :: Events, the organising team behind Index, the region's largest interiors and design exhibition, and was conducted by Ventures ME.
It revealed that in 2012, residential, commercial and hospitality sectors led the GCC projects market with $29.4bn, $12.2bn and $5.5bn worth of projects completed respectively.
Education, medical and retail sectors were other significant contributors, with completed projects worth $5.2bn, $3.3bn and $2.4bn.
It added that in 2013, a two-paced growth is likely with residential, retail and commercial sector construction projects growing at slower rates of 4.4 percent, 4 percent and 13 percent to $30.7bn, $2.5bn and $13.8bn respectively.
However, hospitality, educational and medical projects are predicted to grow at faster rates of 27 percent, 69 percent and 79 percent respectively to $27bn, $8.8bn and $5.9bn.
The hospitality and educational sectors of the GCC building construction industry are set to see their market share by value of projects completed in 2013 grow by 137 percent and 134 percent respectively, the report said.
Residential building projects will remain the largest segment of the real estate market in terms of projects expected to complete in 2013 with a market share of 38 percent, it added.
Commercial will remain the second largest real estate sector with 17 percent but educational is set to overtake the hospitality construction segment and claim third place.
Frederique Maurell, event director for the Index exhibition, said: "A number of construction projects that had been on hold resumed in 2012, as the region's oversupply concerns were dispelled by a rise in demand due to growth of the population and disposable incomes.
"Governments have initiated construction across key sectors to cater to this demand. Though recovery of the commercial real estate sector remains somewhat subdued, new opportunities are emerging in residential, hospitality, retail and education sectors; albeit at a cautious and regulated pace.
"While the global economy as a whole remains relatively flat, it is safe to say that GCC construction industry and the associated interiors fit-out sector are recovering momentum."