Friday, November 03, 2006

Building materials cost to rise further

Building and construction materials prices are likely to go up by another 10 to 15 per cent in the next few months. Since January, the prices of building materials have gone up by at least 40 per cent. The UAE building material industry is worth Dh36.67bn and supports more than Dh638.5bn worth of projects.

Currently no decline of price is possible mainly because supply is less than the demand. The market is opting for cheaper raw materials to complete ongoing projects. In order to deal with the sky-touching prices, some builders are also opting to bring in more cost effective innovative products.

“We try not to increase prices of our building materials in a situation where prices are already touching the sky. Instead, we look for more innovative opportunities and ways of doing business,” said Ghadian Daban, the Managing Director of the Dubai-based Arab Suppliers Group, which deals in steel, aluminium, fibre glass and wood.

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