By Andy Sambidge
Macdonald and Company report says 2020 Expo decision is 'crucial' to maintain positive trend
Salaries in Dubai's real estate and construction industries are predicted to rise steadily over the next few months amid a new property boom in the emirate, according to a recruitment specialist.
A new report by Macdonald & Company said the Dubai real estate market shows no sign of slowing down, saying new projects are "launched by private and government developers alike on a weekly basis".
It added that the UAE's bid to win the World Expo 2020 event - with a decison looming next month - will be a "crucial factor in maintaining this positive sentiment", the company said.
The company added that the comments are based on data taken from the annual Middle East Salary Survey 2013 together with the other regional Macdonald and Company surveys in the UK, Europe, Asia and Africa.
"Many long term developer and consultancy clients are now beginning to hire mid to senior level individuals again for feasibility studies and due diligence, design and planning and development and delivery roles," said Ben Waddilove, director, Macdonald and Company.
"Salary levels are holding firm in general, and we predict a steady increase in the coming months in line with inflation," he added.
Macdonald and Company's report also said the current market sentiment is "very strong" and is much more cash driven than the debt driven bull run of 2007/2008.
However it added that the "greed factor" is once again very evident.
Recent off-plan launches from Emaar and Nakheel and other private developers have sold out very quickly.
"Let us hope that the off-plan development model is more sustainable this time around. Prices are again rising rapidly despite the government's best efforts to curb speculation in the sales market and to curb large rent increases," the report said.
"The whole industry is eagerly anticipating the November decision on who will host World Expo 2020 as industry analysts are saying that a UAE win could drive in more growth and confidence for the local real estate market," it added.
The report also said there is still a relatively large pool of labour in the Middle East and North African (MENA) region and there remains good demand for Arabic speaking candidates with experience of all facets of the development life cycle.
"However, there is also a strong supply of qualified candidates from the UK, Europe and the US that are still seeking opportunities here, although we have recently noticed a slight decrease in numbers applying as these economies recover," the report said.
Waddilove added: "Professionals are still very attracted to this region for financial, career and family reasons. The current situation is definitely improving and we expect that the Gulf States will continue to achieve significant GDP growth next year."For all the latest banking and finance 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.
I hope the Bosses of Construction Companies & Consultancies alike etc are reading this also and act appropriately rather giving us the same HARD LUCK STORY which they have been telling for the last 3-4 years and not increasing the salaries at all.
Trust me the "Bosses" are reading this and soonest we recover from the hysterical feats of laughter we'll call an AGM to announce "appropriate" salary increases (50% enough??) and hand out bonusses for the years 2014&15, what the heck 2016 as well.
Would that be Ok with you?
Have a nice weekend (if you worked this week that is)