By Staff writer
New report says market 'on upward trajectory' despite 21% of projects being put on hold
Dubai’s construction industry currently has over 3,700 projects ongoing across the emirate worth an estimated $400 billion, according to a new report.
BNC’s Dubai Construction Market 2016 report commissioned by The Big 5, the largest construction industry event in the Middle East, highlighted an upward trajectory for the market.
Although approximately 21 percent of projects are on hold, a large number of projects are in advanced stages of construction, with an estimated value of over $100 billion, the report said.
High-value projects under construction include the Sobha Hartland Development ($2.1 billion), the Royal Atlantis Resort and Residences – Palm Jumeirah ($1.4 billion) and the Innovation Hub PT-163 – Dubai Internet City ($1.2 billion), it added.
Commercial and residential units, education, healthcare and hospitality buildings, leisure and recreation facilities, religious buildings, retail facilities and mixed use urban developments make up approximately 77 percent of all project values in Dubai.
“A growing population, the tourism sector, strategic government investments like the Dubai Plan 2021 and the Dubai Expo 2020 are fueling the local construction industry," said Josine Heijmans, event director of The Big 5, commented.
Dubai’s population is approximately 2.46 million people today, and is expected to reach 3.40 million in 2020. The emirate is also becoming a major destination hub for international travellers. “This impressive increase is likely to put a strain on the city’s infrastructure, creating a need to expand its capacity” Heijmans added.
The emirate is also getting ready to welcome up to 25 million visitors to the first World Expo in the Middle East, 70 percent of which are expected to come from overseas.
Total spend on infrastructure projects related to Dubai Expo 2020 might reach up to $18 billion, with estimated development costs of the Dubai South Area between $8.1-$8.7 billion.
Taking place at the Dubai World Trade Centre from 21 to 24 November, The Big 5 2016 is expected to host over 3,000 exhibitors, attracting approximately 75,000 visitors.
$18 billion is an awful lot of infrastructure expenditure to accommodate 25 million visitors in a six month window, I'd be interested to see the legacy plans for that. Although, assuming that number of visitors arrive (I am unsure how the 25 million is calculated!) and they each spend say $1,000 during their visit, then that's $25 billion, so infrastructure paid for and $7 billion profit by 2021.
However, my overriding view is that there are still more projects to be put on hold, given the current economic climate.
oh well, I am waiting for the usual one to come and explain how "this time will be different" and this will be the very first expo where a city makes a profit.
HWMBO is still trying to work out why nobody agrees with him. It is all a conspiracy of course.
@james, indeed. And you are cheating. He seems very upset.
As usual RS is asking the right question, where are the answers.