Tuesday 11 August 2020

Dubai infrastructure projects to hit $82bn

DUBAI, August 26, 2015

Dubai will complete an estimated Dh301 billion ($82 billion) worth of contracts in the areas of housing, entertainment and infrastructure between 2015 and 2020, a report said.

The figure, on average, is double of the current output of the construction sector, added the report entitled “Dubai: Tomorrowland” by Reidin, a leading real estate information company focusing on emerging markets.

These large scale projects will create immediate demand in the work force, reducing the current occupancy rates of housing stock, according to the report.

Real estate has historically contributed 1/4th of Dubai's GDP (Construction & Real Estate services), making it an essential component of its growth trajectory and engine for job creation. At the inception of freehold the construction sector accounted for 26 per cent of the workforce, which almost doubled nearer to the peak of 2008.

Keeping its importance to the economy, real estate's contribution as a percentage of overall GDP is expected to rise significantly in the years ahead, Reidin explained in the report.

“Using a per unit of value job creation metric, we extrapolate that the number of jobs created in the real estate sector will rise by approximately 60 per cent in the next five years,” the report said.

“We opine that as these jobs are created, there will be a mismatch between the sectors where the jobs are created (predominantly at the mid end) compared to the topography of the real estate, which is skewed towards the higher end.  This projected demand is expected to translate into price activity in the medium term,” it added. – TradeArabia News Service

Tags: Dubai | Infrastructure | Reidin |

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