photo credit: 7_70
Dubai’s planned investment property projects could get a boost in the new year as construction costs start to fall.
Figures from UK consultants EC Harris show building-related prices will fall by 10 per cent in 2009, UAE paper The National reports.
Contractors could also become more ‘aggressive’ in their search for work, The National says, following soaring prices for materials like steel earlier this year.
Quoted by The National, Mark Prior, a partner at EC Harris, said:
“With liquidity emerging as a key threat in the region, current levels of growth will be restricted in the short to medium term.
“After a significant year-on-year high of 20 per cent construction inflation, it is evident that we will start to see this change.”
Last month the government of Dubai hinted it was examining the idea of holding back the roll out of some housing units in order to help the real estate market.
According to AME Info, Mohammed Alabbar, chairman of developers Emaar, said officials planned to work with the emirate’s biggest developers to manage supply of homes.
He added the real estate sector in the region is seeing a “healthy” correction due to global conditions.
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