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October 18, 2016

Q4 2016 Construction Update

2016 has been a hectic year for the property and construction industry as it has introduced a number of high profile and innovative projects in the GCC despite the oil slump. Projects such as Expo 2020 and World Cup 2022 have allowed UAE and Qatar to remain market leaders in the construction industry by focusing on buildings and infrastructure to boost tourism and as a result to accelerate growth of the property and real estate market in the GCC.

Q4 2016 Construction Update
Cooper Fitch Dubai
Cooper Fitch Dubai
Cooper Fitch Dubai
Cooper Fitch Dubai

According to candidates in project management positions, developers and contractors have had to re-evaluate planned projects due to fluctuating oil prices with priority given to projects that meet the region's social and economic developments. However, the UAE has been impacted less by oil fluctuations than other countries in the GCC, in addition to the growing population combined with increasing tourism activities and massive projects such as Expo 2020 have been the driving forces behind the demand for construction projects.

Source: Ventures Onsite MENA Projects Database - www.venturesonsite.com

UAE

  • Q4 could see a further decline in property and rent in Dubai, as the market needs more time to adapt to oil fluctuations and movements of global currency
  • Majority of candidates believe that Brexit’s impact will be short-term, with the market to pick up in Q1 2017, while some suggest that the market is stable going into Q4 2016

Qatar

  • Despite challenging economic circumstances, the government will continue investing in projects integral to the World Cup 2022 to keep the market stable for a significant period, with retail, residential and hospitality expecting even more growth in 2017

Saudi Arabia

  • Low oil prices have a continued effect going into Q4, however, the government is taking measures by prioritising infrastructure in order to reduce the country's oil dependence.
  • Commercial and residential segments are predicted to be steady based on the selective approach of construction projects

Bahrain

  • Regardless of the fall of oil prices, many real estate companies have entered the market due to growth patterns from Q4 2016 onwards with focus on tourism and retail in addition to low transaction costs and low cost of living for both citizens and expats.

Kuwait

  • The local residents and property market may remain stable with an increase in rents due to continuous demand low levels of development while the private sector has become involved in construction projects to reduce the burden on government spending due to unstable oil prices 

Oman

  • Continued Infrastructure development in Q4 will add stability to support economic growth with the focus on Oman’s ambitious tourism growth strategy to attract millions of visitors by 2030

Source: Ventures Onsite MENA Projects Database - www.venturesonsite.com

Kazim Hussain By Kazim Hussain

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