Wednesday, Dec 14, 2011
Gulf News
Abu Dhabi The cost of construction labour in Abu Dhabi fell 8.6 per cent in November from the previous month, Statistics Centre Abu Dhabi (SCAD) said on Monday in its latest report on the prices of building materials.
The report revealed that the prices of PVC pipes fell 3.8 per cent last month, and the prices of blocks fell 3.4 per cent. UPVC pipe prices fell by 2.8 per cent from October.
On the other hand the prices of sink stainless steel with mixer-single increased by 7.3 per cent with prices of items within this group increasing by 3.8-10 per cent. The next largest rise was in the prices of wires for apartments, which advanced 2.1 per cent, followed by false ceilings (up 1.9 per cent) and tiles and marble (up 1.8 per cent), said SCAD.
It seems that there is an excess supply of construction labour in Abu Dhabi. The decline in the prices of some of the building materials reflects a slowdown in construction activity, Mohammad Amerah, an Abu Dhabi-based economist, told Gulf News.
Abu Dhabis real estate market has slowed during 2011 due to suppressed demand at a time of increasing supply. Demand has been reduced due to the government cutting back spending on infrastructure investment and economic development initiatives, combined with slowing global economic activity, David Dudley, Regional Director at Jones Lang LaSalle, a global real estate services firm, told Gulf News last week.
SCADs report also reviewed changes in building materials prices in November compared with November 2010, with the transport equipment rents group showing the largest rise (25.5 per cent), followed by the prices of aggregates and sand, which climbed 19.7 per cent as all items within this group registered price increases of 3.6-44.4 per cent.
Prices of steel rose 14.9 per cent and wires for residential towers 13.8 per cent.
SCADs monthly report of building materials prices surveys the prices of 21 groups of commodities and services that represent the most important materials used in the construction industry.
Excess supply
Construction workers assembling a scaffolding frame. Prices of steel rose by 14.9 per cent and wires for residential towers by 13.8 per cent.
Abu Dhabis real estate market has slowed down during 2011 due to suppressed demand at a time of increasing supply.
David Dudley
Regional Director at Jones Lang LaSalle
By Himendra Mohan Kumar?Staff Reporter
Gulf News 2011. All rights reserved.
