By Andy Sambidge
Industry experts see construction sub-industry growing from $5.1bn to $8.6bn amid project revival
The interior design and fit out market in the GCC is set to see $8.6bn worth of contracts awarded in 2011, compared to $5.1bn last year, it was announced on Tuesday.
With building contracts to the tune of $89bn awarded in 2010, and a total of $43bn projects completed last year, interior design contractors can expect to have a steady stream of projects in 2011 and beyond, a new report said.
The forecast was revealed in a study commissioned by UBM Built Environment, organisers of the only design-led, luxury interiors show in the UAE.
It said building projects across the GCC were slowly being revived and fresh projects with a greater focus on quality and price have begun to progress forward.
It added that construction contracts worth $96bn were expected to be awarded in 2011, increasing to $101bn in 2012.
"The value of completed and awarded construction projects represents a definite potential for interiors and fit-outs as interior projects are usually contracted during the second half of the project execution," said Tony Crinion, event director, UBM Built Environment.
With commercial districts in Dubai, Abu Dhabi, Riyadh, Muscat, Doha and Bahrain leading the growth story in the region, the interiors contracting and fit out market is expected to reap potential growth in the years to come, he added.
In the UAE interiors market, the Ventures Middle East report saw 2011 spending in the commercial buildings sector increasing to $821m from $709m last year while the hospitality sector will see spending this year to the tune of $1.3bn, up from $406m in 2010.
The biggest interior project potential will be in the residential segment, where an estimated $1.8bn will be sent across various residential projects in the UAE, the report added.
The study also identified the top projects in 2010 with considerable potential for interiors and fit outs contractors. These include The La Hoya Bay Residences in Marjan Island in Ras Al Khaimah, Damac Heights in Dubai Marina, ADNOC's new Headquarters in Abu Dhabi, and the new Presidential Office in the UAE capital.