Construction projects value in UAE to hit US$315bn in 2014

The volume of announced and planned projects in U.A.E. in 2014 is expected to be worth US$315 billion, and as of May 2014, US$212 billion worth of construction projects were under construction, a new report said.
The U.A.E. construction market is expected to return to near full capacity with a number of megaprojects in the pipeline and the ramping up of social infrastructure spend, according to the '2014 International Focus on the U.A.E.' report by the London-based built asset consultancy firm EC Harris.
According to EC Harris' Construction Cost Index, construction prices in U.A.E. are set to rise by 4 to 5 percent over the duration of the year and approximately 6 percent in 2015.
"U.A.E. has experienced a shifting momentum of activity over the past decade with 2009 onwards being difficult years for the market. The dynamic has changed from a period of negative to low inflation over the last few years to a period of moderate increase," said Christopher Seymour, partner and head of property and social infrastructure at EC Harris.
"The market is finally showing real signs of recovery and prospective growth suggesting that the construction market will remain strong this year," he said.
The report takes into account U.A.E.'s estimated real gross domestic product (GDP) growth, accelerated momentum across industry sectors, market conditions and construction tender price levels.