$657bn construction projects in UAE still active
Projects worth $657 billion are still active in the UAE, says Proleads
Some 1,845 projects worth a combined $657 billion are still active in the UAE, latest research by Dubai-based Proleads revealed on Wednesday.
The study of the civil construction industry in the country, which showed 69% of the total projects were ongoing (not cancelled or delayed), split the market into four sectors - Commercial and Retail, Education and Healthcare, Leisure and Entertainment and Residential.
“Throughout our research in each sector we found a number of common issues, said Emil Rademeyer, director, Proleads. “Over two thirds of projects are still active, new projects starting have slowed and projects completing are accelerating and cash flow is declining."
The largest of the sectors by number of projects as well as by budget is the commercial and civil sector, the survey showed. The total market consisted of 829 projects valued at $412 billion.
The residential sector was valued at $312 billion. The survey showed that the rate that projects were being cancelled has accelerated over the course of the year although the largest proportion of projects, were still in progress.
Projects classified within the leisure and entertainment sector amounted to more than $233 billion spread across 445 projects, while education and healthcare has almost 700 projects worth $57 billion.
“So although the overall situation looks stable, unless investment for new projects is found the size of the real estate industry will shrink and its overall shelf-life will be reduced,” added Rademeyer.
In terms of projects currently under construction, the report found Dubai had the larger share of the market compared to neighbours Abu Dhabi.
“This view is supported further when looking at the scheduled completion dates with the bulk of the Dubai projects coming to a close during 2010 and 2011 and Abu Dhabi in 2012 and 2013,” said Rademeyer.