Middle East construction growth is to slow but is still expected to expand at approximately seven per cent per annum for the next few years, a new report claims.
The report on international construction trends by leading project and cost consultancy Davis Langdon showed that worldwide construction activity grew by three per cent in 2007 compared to almost five per cent growth in 2006.
Davis Langdon’s offices in Lebanon, Bahrain, UAE and Qatar are working on a number of major projects including the Reef Island Development in Abu Dhabi, The Lagoons in Dubai, Yas Island in Abu Dhabi; and King Hamad Hospital in Bahrain.
The report is broken down by region and provides a review and outlook for the construction industry in Europe, the Middle East, the United Kingdom, China, Asia Pacific, Australasia, the Americas, Africa and India with an overall worldwide commentary.
The research suggests that we can expect subdued growth of around three per cent in the global market in 2008, with similar growth rates forecast for the next three years. The brightest growth prospects through to 2010 are China and India, with strong growth also expected in Vietnam, Korea, Venezuela, Egypt, the UAE and Poland.
In the UK, the housing market is beginning to slow in response to similar weakening in both the US economy and US housing market.
However, higher levels of spending on public housing are likely to offset dramatic declines in overall output.
Middle East construction growth will start to slow down but is still expected to expand at approximately seven per cent per annum for the next few years. The market will be worth about $66 billion (Dh242bn) in 2007, an increase of almost 10 per cent since 2006.
In Europe the most marked turnaround in growth has been seen in the non-residential sector, particularly within the industrial construction sub-sector. Germany showed the greatest improvement where the sector is recovering after a decade long slump.
“The construction market in China and its major cities are now the focus of worldwide attention with the UAE, and Dubai in particular standing out in terms of short to medium-term growth prospects,” said Senior Consultant David Crosthwaite, the author of the report.
“In the longer term, the report highlights an optimistic view of growth prospects in Asia with increasing pessimism about Western Europe, East and Central Europe, Africa and South America.”
Davis Langdon undertakes this survey – which offers valuable insights into construction activity – on an annual basis and it is just one of just a number of regular market forecasts the firm compiles for the industry.
Middle East construction to expand at 7%