Abu Dhabi to lead UAE construction boom - report
Research firm predicts compound annual growth of 9.5% from 2012-2016
The UAE is set to grow at a rate of 9.5% over the next five years, according to a new report from market research firm RNCOS.
The firm's UAE Construction Industry Outlook 2016 report investigates the impact that markets such as residential, retail and hospitality will have on stimulating demand, as well as looking at the demographic profile of the nation, rates of gross domestic product and foreign direct investment.
It argues that the most substantial growth is expected to occur in Abu Dhabi, which it predicts will "become the centre of the construction boom owing to rising government support".
"Besides, real estate market in Abu Dhabi is currentlyis currently undersupplied, with demand exceeding supply in all three residential, office, and retail sectors," RNCOS says.
"Further, in its development phase, the capital city is launching large infrastructure and housing projects."
It states that a growing expatriate community is continuing to create demand for residential units, and that economic conditions continue to improve as GDP rises.