Completed GCC construction projects forecasted to jump 92.06% in value
DUBAI- Construction projects across all building sectors worth US$128.46bn are expected to be completed by end of this year hitting a 92.06 per cent increase compared to 2013 (US$66.89bn). The expected expenditure on interiors and fit-outs is US$9.57bn, 29.63 per cent more than what was spent in 2013. The findings are part of a bi-annual study conducted by Ventures ME and revealed by dmg events on the eve of the inauguration of INDEX exhibition, the leading MENA interior design trade show.
The research analyses both the building construction and the fit-out and interiors markets focusing on six main sectors – residential, commercial, hospitality, retail, educational, and medical – in each of the GCC countries.
2014 Forecast for GCC Building Construction Market
Out of a total market worth US$128.46bn, the medical, residential and hospitality sectors will count for over half of the market with shares of 24.43 per cent, 23.34 per cent and 22.64 per cent respectively. The three sectors leading the way will be followed by the commercial (12.51%), educational (5.86%) and retail (1.09%) sectors.
Compared to the previous year, the hospitality and medical sectors will register the biggest growth; the value of completed hospitality building projects is forecasted to jump from US$3.68bn to US$29.08bn (+690.03%) whereas the value of completed buildings for medical use will go up of 725.19 per cent to a value of US$31.38bn (US$3.80bn in 2013).
KSA will be the country where most of the completed buildings will be located particularly in the residential (US$34.39bn), hospitality (US$3.85bn), commercial (US$7.97bn) and educational (US$4.38bn) sectors.
Qatar will register retail projects to be completed for a total value of US$522m moving up in the country’s ranking from the fifth position in 2013 to the top one.
The United Arab Emirates will be at the high end of the rank when looking at the healthcare sector; out of a total market forecasted to value US$31.38bn, the UAE will account for US$ 3.13bn – a remarkable difference when compared to the value of completed projects in 2013, US$ 227m.
2014 Forecast for GCC Interiors & Fit-out Markets
Out of an overall estimated market value of US$9.57bn, the residential sector will be the largest spender with US$3.30bn (34.47 per cent), followed by the hospitality sector with 20.24 per cent of the market and US$1.94bn spent in value and the commercial sector with US$1.77bn (18.48 per cent).
When compared to 2013 figures, the sectors that are expected to register the highest increase will be hospitality, up 133.88per cent to US$1.94bn, and the medical sector that will almost double in value from US$304m to US$607m.
KSA will rank in the top position when looking at the hospitality (US$866m), commercial (US$876m) and educational (US$350m) sectors. The healthcare and residential sectors will see UAE at the top of the rank with US$251m and US$1.31bn respectively.Of the total US$315m estimated interiors and fit-out retail investment, Qatar will be the major spender with US$117m.
