Building material prices to go up in Middle East by 20%

Building material prices to go up in Middle East by 20%

The ongoing pandemic has created havoc in the global economy and has not spared any particular sector in any part of the world including construction. Although essential construction projects have continued functioning, the cost of construction has been drastically affected due to the lack of availability of building materials.With global supply chains buckling and trade tensions elevating, materials prices have soared considerably. In addition, since the majority of the supply of the building materials is from China, India, Turkey and Europe, the economic conditions these regions are affecting the prices.One of the biggest factors for the increase in the price of building materials is that the freight prices have risen exorbitantly due to the pandemic as the container operators are demanding high prices. The rate per container has increased 3 times, i.e. a 40 ft. container that used to earlier cost $1,000 is now costing $3000 and might even reach $4,000. A lot of companies have slowed down their imports, bearing in mind the fact that such high freight is affecting their overall landing cost. This will in turn lead to a shortage of materials.Another important reason for the prices to go up is the fact that the Chinese