$12 Billion Of UAE Stalled Real Estate Projects Resumed Over The Past 18 Months

MEED Projects has revealed that more than $12 billion of previously stalled UAE projects has resumed with construction work over the past 18 months. The pace at which stalled projects resumed construction activity has increased since Dubai won the right to host the Expo 2020 as positive sentiment returned to the UAE real estate market. 2013 saw more than $23 billion worth of projects awarded in the construction sector, 55% of which were for mixed-use or residential developments. The volume of projects awarded made 2013 the second best year for project awards since 2008, a strong sign of the UAE's strengthening economy.

Julian Herbert, Director of MEED Projects said; “2013 showed some of the most promising growth in the construction sector since 2010, with especially strong figures in the residential and mixed-use sector of the industry. This is a positive sign of increased investment in the UAE's economy, both from developers and from property investors - the large number of residential project awards alone demonstrates that there is a rising demand for such buildings, indicative of a growing population. The UAE is well on track to returning to the levels of investment last seen in 2008, with 2014 expected to be even better."

MEED Projects expects there to be $23 billion worth of construction projects awarded throughout 2014, with more than $5 billion having been awarded during the first quarter of the year alone. More than $12 billion worth of stalled projects have resumed and this number is expected to increase further during the year. “We had to physically visit every construction site in the UAE to verify the current level of construction activity. We conduct this survey once a quarter which allows us to accurately report on the volume of construction in the UAE.” Herbert said.

Habtoor Leighton Group has dominated the UAE real estate construction sector from 2008-2014, having secured close to $10 billion worth of real estate construction contract awards. Arabtec has won upwards of $5.5 billion worth of contracts, with other top contractors within the same period being Al Jaber Group, Arabian Construction Company and Al FuttaimCarilion.

Emirate:  Dubai

Date: Apr 2, 2014

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