UAE construction workloads strengthen while rising material costs continue to challenge sector

UAE construction workloads strengthen while rising material costs continue to challenge sector

- Construction workloads witness increase this quarter

- All sectors continue to give strongly positive readings with private residential leading

- Rising demand continues to increase material costs and various skills shortages

The Royal Institution of Chartered Surveyors (RICS) Global Construction Monitor Q2 2023 found that the headline activity index rose to a solid +47% this quarter – up a touch from +41% previously. Unlike most other construction sectors globally, where infrastructure and public works lead activity, the UAE’s leading sector for construction workloads is the private residential sector (+55%). It should be noted however, that the commercial sector and infrastructure sector also continue to report strongly positive results, with a +35% and +44%, respectively.

The UAE’s construction sector, like several others in the region is running hot, and high demand is increasing the cost of building materials. Indeed, the cost of the materials is noted as a key element holding back activity (+59%). Skills shortages are seen as another primary cause holding back activity (51%), while Quantity Surveyors are singled out as the profession in greatest shortage (+51%), followed closely by Managers (+43%), and skilled trades (+42%)

Respondents also strongly see costs continuing to rise (+68%). On the other hand, despite increased material costs,