Price stabilization, evolving trends, and the UAE’s resolute development goals infuse a wave of optimism within the construction sector: JLL

Price stabilization, evolving trends, and the UAE’s resolute development goals infuse a wave of optimism within the construction sector: JLL

- The sector accounted for 60% of the total value of projects awarded to the UAE, with residential, mixed-use, cultural, and commercial emerging to be the leading segments

- In terms of tender price inflation, a 2% year-on-year increase is expected in 2023, driven by the estimated project pipeline value correlated to future demand and JLL’s intelligence gathered from local contractors and supply chain

Dubai, United Arab Emirates – Supported by the UAE’s strong development agenda, Projects of the 50 initiative, as well as the subsequent focus on industrial, transportation, and energy infrastructure aiming to attract nearly $150 billion in foreign direct investment by 2030, the country’s construction sector is expected to thrive at an encouraging pace. Global Data indicates that the sector's growth output is slated to increase by over 3.0% year-on-year.

According to Emirates NBD Research, Dubai's construction sector performed moderately throughout 2022, with business activity remaining high against conservative new work growth. The index rose 2.2 points from November 2022 to 55.4 in December, after averaging 51.0 during Q3. The December index was the highest among Dubai's travel and tourism, wholesale and retail, and private non-oil sector indices.

Amid sub-sectors, the residential segment maintained its upward trend, with 44,000 units delivered