Construction costs in the UAE could jump by a fifth next year on higher raw material and labour costs, consultancy EC Harris has warned.
Costs for materials such as cement and steel could rise 19% during the next 12 months, the London-based international real estate and construction consultancy said, quoted UAE daily Emirates Business 24/7 on Sunday.
Costs of materials have risen between 15% and 20% so far this year, the newspaper said. Construction costs rose 25% in 2006, the newspaper said, without giving an estimate for 2007.
An amnesty for 250,000 illegal foreign labourers earlier this year - allowing them to return to their home countries without penalty - is driving wages higher, according to the newspaper.
"There is a shortage of labour," Imad Al-Jamal, an official at the UAE Contractors' Association, is quoted as saying. (Reuters)For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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