By Andy Sambidge
New research also shows that interior fit-out market in region forecast to grow 90%.
New research has revealed that the value of interior design contracting (IDC) and fit-outs within the GCC is forecast to grow by almost 90 percent over next year.
The total value of IDC work in 2009 and 2010 will hit $22 billion, with two thirds of this spend in the UAE, the study by research company Ventures Middle East added.
The research, carried out on behalf of dmg World Media, the organisers of interior design show INDEX, estimated that the total value of new construction projects for all sectors (hospitality, commercial, retail and residential) in the GCC with completion dates within 2009/2010 was $149 billion.
Despite the economic downturn, the UAE remains ahead of the rest of the region, accounting for 66 percent of all new construction projects, followed by Saudi at 15 percent and Qatar at 10 percent, Ventures added.
IDC includes all work to flooring, ceilings, walls – and is an average of 15-20 percent of the total project value while fit-out is the furniture and fixtures, electrical, kitchen, laundry, estimated at an additional 5-8 percent of the total cost.
Residential construction projects were the drivers of the IDC and fit-out spend, accounting for 49 percent of the total estimated value, followed by hotels at 27 percent, offices at 19 percent and the retail sector 6 percent.
Lu Buchanan, INDEX show director, said: “The research...shows that there are good prospects for the interiors industry, as we start to move out of the economic downturn. The UAE continues to be a driver for the industry, and this supports our belief that Dubai is ideally placed to become the global hub for interior design.”