Construction costs increased in the first half of this year mainly due to rise in building materials price, labour wages and diesel prices.
The Dubai Statistics Center figures released on Monday showed that the diesel prices topped with 31.7 per cent rise, followed by workers' wages at 17.9 per cent.
About 30 per cent of total employment in Dubai is involved in the construction sector, the figures showed.
Construction sector continues to be a key driver of Dubai’s economy, contributing nine per cent to the emirate’s GDP.
Steel prices rose by 10.8 per cent, followed by wood (5.1 per cent), concrete (2.4 per cent) and bricks and dyes (1 per cent). Cement prices rose slightly by 0.1 per cent while sand prices fell by 8.8 per cent.
The prices of raw materials jumped by 3.5 per cent. The report attributed the rise in prices of raw materials to higher prices of electric wires which rose 16.1 per cent. The rental equipment declined by 3.4 per cent.
On a month-on-month basis, raw material prices rose 0.3 per cent in June. Timber and steel prices rose 4.6 per cent and 2.2 per cent, respectively.
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