The UAE’s Construction Market Set to Grow by 3 Percent Annually Until 2028
In an exciting development, the UAE’s construction market is expected to experience a steady growth rate of 3 percent per year until 2028. This projection is driven by significant investments in transport and renewable energy sectors, according to a report from GlobalData.
Residential Developments and Real Estate Sector Lead the Way
The report highlighted residential developments as the dominant segment in the UAE’s construction market for the previous year. Additionally, the real estate sector continues to show momentum, with expectations of continued progress throughout 2024.
Significant Role in the MENA Construction Market
The UAE played a crucial role in the Middle East and North Africa construction market in the first half of 2023, with $23 billion in awarded projects. However, Saudi Arabia took the lead in the MENA building sector, accounting for 67 percent of the total value in the same period.
High-Quality Infrastructure Projects and Investments Drive Growth
The anticipated growth in the UAE’s construction market is expected to be fueled by the initiation of high-quality infrastructure projects and substantial investments from both governmental and private entities. This growth is crucial for the overall development and progress of the region.
Forecasted Tender Price Inflation and Stability
Looking ahead, the UAE is forecasted to experience a 3 percent annual increase in tender prices due to market factors like commodity and construction material cost fluctuations. However, the report predicts that tender price inflation in the UAE will stabilize at around 2 percent in 2024.