Thursday, April 12, 2007

Building boom increase raw material cost 30 percent

Building raw material prices are soaring again, thanks to a continuing boom in the global real estate industry. And the Middle East is not immune, with prices of construction products expected to increase by almost 30 per cent this year.

In the last year, steel and wood prices have gone up by 25 to 30 per cent. And this trend is likely to continue due to high demand for raw materials from India, China and other Middle Eastern countries.

According to research commissioned by the company in 2005, the regional raw material industry was worth Dh40 billion, while it was valued at Dh18bn in the UAE.

Getting raw materials on time to meet their deadlines is the biggest challenge regional contractors face. Dubai in particular has seen thousands of properties sold in the past few years purely on the strength of an artists impression and a scaled down model positioned in a busy shopping mall.

The Association of Professional Interior Designers (APID) believes competition among regional real estate developers is spurring high demand for innovative flooring to help differentiate interiors.

According to the association, regional property developers are increasingly looking for ways of differentiating their product by creating greater interest in flooring, hard surfaces and the materials, colours and finishes that contribute to versatile interior designs.

The concentration of mega projects in the UAE is strong and has placed emphasis firmly on design. The region is rich in creative talent, and this boundless imagination combines with visionary clients to pro duce some of the most fascinating interior spaces.

It seems that in design terms, bigger is often regarded as better, which may result in huge interior spaces. The bigger these spaces get, the more they become a critical design component, and to fill those spaces correctly, the more innovative flooring solutions are sought.

The next markets to witness this rapid growth will be Qatar, Oman, Kuwait and Morocco, he adds. Regional demand for aspirational and functional interior design is extremely intense and there is need for new products and techniques.

APID believes increased regional interiors activity also means the association needs to press for best practice standardisation through the Middle East to ensure quality standards. The total current demand for power cables in the country is more than Dh1bn.

[Source : Emirates Today]

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