Abu Dhabi building material prices decline in October

• Text size
•  
•  

Building material prices in Abu Dhabi reflected an overall downward trend in October, according to the monthly report issued by the Statistics Centre - Abu Dhabi (Scad).

The average prices of six out of 10 basic items have shown a decline in the last month, said the Scad report.

Khalfan Al Kaabi, Head of Contracting Committee at Abu Dhabi Chamber of Commerce and Industry and Chairman of Ascorp Holdings, said: "The fall in the prices of most basic building materials in Abu Dhabi could be attributed to the over supply in global markets and the international financial crisis. But the current situation is much better than the last few years and the construction sector in Abu Dhabi is still robust."

He said: "Contractors can take advantage of the drop in prices by constructing new buildings for a much lower cost and speed up the completion of their projects. Especially, with the easing up of finance, which is available faster from the banks in the emirate."

However, Kaabi said, the market is more realistic. "Definitely, the prices are falling. But they might soon stop at their current levels since they have started to take their stable and actual positions."

The average price of concrete decreased by 10.99 per cent compared to September whereas the price of standard the UAE ready mix concrete, fell from Dh352.5 in September to Dh315 in October and that of the UAE sulphate resistant ready-mix concrete dropped from Dh363.75 to Dh322.5 for the same period. The organisation monitors movements in building materials prices in Abu Dhabi, using the prices of 164 items that constitute some 95 per cent of the basic materials used in the construction industry (see table).

The average prices of tiles and marble declined by 5.79 per cent in the month of October below their average levels last September. This was due to the decline in the prices of most types of tiles and marble. Marble tiles fell by 9.75 per cent, the UAE terrazzo tiles by 8.18 per cent, and walls ceramic tiles by 11.88per cent. Likewise, the average steel price of construction steel edged down by 1.86 per cent in October compared with the previous month as result of lower prices for most types of steel products (see table).

The average prices of sanitaryware dropped by 2.62 per cent in October from the average recorded last September due to the lower prices of bathroom sets (without accessories), which fell by 5.68 per cent. Bathroom sets with accessories and stainless steel sinks with mixers remained unchanged.

Meanwhile, the average price of wood slipped by 1.02 per cent in October due to reduced average price per cubic meter of Chilean white timber by 10.73 per cent from Dh1,203 to Dh1,075. Also the average price of white Indonesian plywood dropped by 10.26 per cent from Dh71.58 to Dh64.24 for per 4x8x12mm sheet and 7.78 per cent for per 4x8x18mm sheet. But the average prices of small and large Malaysian Keruing redwood shot up 15.38 per cent and 9.27 per cent , respectively, compared to their September levels.

Cement slipped by 0.32 per cent compared to its September price, reflected by the drop in the average prices of Itihad sulphate resistant cement from Dh330 to Dh321.25 per tonne and Itihad Portland cement from Dh320 to Dh311.25 during the period (see page 16).

October also saw significant rises in the average prices of four basic groups. Glass went up by 13.05 per cent against the average reported last September. Prices of 4mm and 6mm untinted glass shot up by 16.67 per cent and 30.95 per cent respectively.

By Abdel Hai Mohamad

© Emirates Business 24/7 2009