Dubai Statistics Center: The Record Indicator for Construction Costs Up by 0,73% in Dubai
A report by the Dubai Statistics Center (DSC) revealed an increase in the general record number for construction costs during the first quarter of 2015 to 101.12 with a slight increase of 0.73% compared to the record number for the first quarter of 2014 which was 100.38, the increase corresponds to an increase in the record number for equipment, labor and other costs from 102.38 in the first quarter of 2014 to 103.46 during the first quarter of 2015 with an increase of 1.05%. The report also revealed an increase in the record number for raw materials from 99.05 during the first quarter of 2014 to 99.55 during the first quarter of 2015 as a result of the increase of the prices of a majority of construction materials by 0.51%. Table No.1 and Figure No. 1 show the change percentage in the record numbers for construction costs as a function of the building type during the first quarter of 2015.
First: Raw materials
The DSC report revealed that prices of raw materials used in construction operations rose slightly by 0.51% during the first quarter of 2015 as a result of the increase in the prices of quarry materials by 2.02% and the increase in the price of process industries materials by 0.44%.
Raw materials prices used for residential buildings rose by 0.57% and by 0.29% for non-residential buildings. Figure No. 2 shows the percentage change in the record numbers for raw materials as a function of the building type for the first quarter of 2015.
A detailed analysis of the movement of the raw materials price index is as follow:
1. Quarry Materials
The prices for quarry materials rose by 2.02% as a result of the increase in the prices of raw stones, sand and gravel by 2.02% it is worth noting that the prices of these materials increased by the same percentage for residential buildings and by 2% for non-residential buildings.
2. Process industries materials
The fluctuation in the prices of process industries materials upwards and downwards contributed in limiting the rise in the index for this category which rose by 0.44% the increase in the prices of materials in accordance with the category was as follows:
- The prices of furniture rose by 12.98%, the prices of fabricated metals such as tanks rose by 8.83%, the price of other nonmetals and which include essential materials such as cement and cement products rose by 1.83% and the prices of rubber products and plastics rose by 0.06%.
Whereas materials prices dropped for the following categories:
- The prices of refined petroleum products dropped sharply by 18.94% and the price of basic metal precuts such as construction iron and aluminum products dropped by 5.53% whereas the prices of electrical equipment which include the electricity distribution equipment and wires dropped by 2.51% and the prices of wood and wood products except for furniture dropped by 1.53% and the prices of computers and electronics and optical products dropped by 0.95% and the prices for chemicals and chemical products dropped by 0.66% and the prices of equipment and other instruments such as faucets and spigots dropped by 0.39%, upon studying the changes in the index for buildings, the price index for residential buildings increased by 0.5% for non-residential buildings increased by 0.22%.
A detailed review of the costs movement for the process industries section is as follows:
Wood and wood products except for furniture
The prices for materials in this section dropped by 1.53% due to the drop in the prices of wood products such as sheets and boards of compressed wood and, plywood and MDF boards by 2.08% and the price of sawn and polished wood by 0.49% and the change in prices was affected by a percentage of 1.53% for residential buildings and 1.52% for non-residential buildings.
Refined Petroleum Products
The drop in the prices of refined petroleum products like the prices of engines fuels and liquid fuels led to a drop in the index for this section by 18.94% as a result of the drop in the diesel prices by 18.94% it is worth noting that the change in the index was equal for all types of building with a percentage of 18.94%.
Chemicals and Chemical Products
The price index for chemicals and chemical products dropped by 0.66% as a result of the drop in the price of all the materials in this section where the price of the materials listed under the paints, polishes and varnish dropped by 0.66% and the impact of the change in the prices was equal for all types of building and reached 0.66%.
Rubber and Plastic Products
The price index for rubber and plastics rose by 0.06% as a result of the increase in the prices of plastic products such as pipes, hoses and hose connectors by 0.07% and the prices of other rubber products was stable at their pervious prices. Upon studying the report, it was found that the prices of rubber and plastic products for non-residential buildings rose by 0.07% while the prices for residential buildings rose by 0.06%.
Other Non-metal Products
The price index for other non-metal products rose by 1.83% and this is due to the increase in the price of concrete, cement and gypsum products such as blocks, bricks and cement tiles and the ready-mix cement and gypsum products which rose by 3.22% and the prices for glass and other glass products increased by 2.53% and the prices for cement, limestone and gypsum increased by 1.98% and the prices for processed stones, marble and alabaster rose by 0.92% and the price of other non-metal products not categorized under another category such as asphalt or insulating materials rose by 0.05% as for the prices of structural clay products such as ceramics, red bricks, brickwork and washing basins, these prices dropped by 0.44% and the report revealed that the prices of these materials rose by 1.9% for residential buildings and by 1.56% for non-residential buildings.
Basic Metal Products
Prices for materials in this category dropped by 5.53% as a result of the drop in the price of the basic precious metals and the other non-ferrous metals such as wires, copper or lead pipes by 10.49% and the price of basic iron and steel dropped by 3.87%. It is worth noting that the prices for these materials dropped by 5.61% for residential buildings and by 5.2% for non-residential buildings.
Processed Metal Products Except for Machines and Equipment
The price index for this section rose by 8.83% pushed by the increase in the prices of metal vessels and tanks by 25.49% and the prices of structural metal products such as metal fittings used in construction such as metal doors and windows rose by 10.65%.
Despite the drop in the prices of other processed metals not categorized elsewhere such as fastening pins and nails and other effects related to the metal products industries by 1.94%, as well as, the drop in the prices of forming metals by hammering, compaction, casting and rolling by 1.06% and the prices of cutting tools and manual tools and general metal tools used in the manufacturing of locks, pins and keys by 0.02%. The prices of these materials marked a significant increase by 8.96% for residential building and 7.71% for non-residential buildings.
Computers, Electronics and Optical Products
The price index for computers and electronic and optical products dropped by 0,95% affected by the drop in the prices of consumer electronics such as visual electronic products such as visual recording equipment and electronic audio products such as auxiliary recording equipment by 1.44%. Furthermore, the price of measuring, verification, testing, navigation and control equipment such as automatic control equipment, electricity, water and gas meters and other meters dropped by 0.53% and the prices of telecommunications equipment such as transmission equipment such as transmission and receiver antennas dropped by 0.46%. Upon studying the movement of the index for the types of buildings, it was noted that the index dropped for residential buildings by 0.96% and for non-residential buildings by 0.92%.
Electrical Equipment
The price index for electrical equipment dropped by 2.51% driven by the drop in the prices of electronic and electric cables and wires such as the insulated electric cables and wires made of steel, copper or aluminum by 4.5% and the prices of electrical lighting equipment by 1.65% and the prices for home appliances such as fans, air exhausts and electrical heaters by 1.31% and the prices of electrical wires used in electrical circuit breakers and electrical switches by 0.31% and the prices for electrical generators and transformers and electrical distribution panels were stable at their previous levels. It is worth noting that the price index for residential buildings dropped by 2.55% while the price index for non-residential buildings dropped by 2.38%.
Other Equipment and Tools
The price index for other equipment and tools dropped by 0.39% due to the drop in the price of other multi-purpose tools such as air conditioning equipment and liquid and gas filtration equipment and fire fighting equipment by 1.09% , as well as, the prices of pumps, compressors, faucets and other valves by 0.56%, the report also indicates that the prices of lifting and handling equipment such as elevators, electric escalators increased by 2.47% and the drop in the index for non-residential buildings was by 0.4% while for residential buildings the drop was by 0.39%.
Furniture
The price index for furniture rose by 12.98% and the report revealed that the increase was due to the increase in the price of furniture made of aluminum or other metals such as closets and metal furniture by 13.00% whereas the prices for wooden furniture did not mark any change. Upon studying the movement of the index for the types of buildings, it was found that the index rose for residential buildings by 12.99% and for non-residential buildings by 12.94%.
Second: Equipment, Labor and other Costs
The index for equipment, labor and other costs rose by 1.05% as a result of the increase in labor costs and other costs by 1.2% despite the drop in the cost of renting equipment by 1.63%. It is worth noting that the change in the index for residential building was 1.06% and for non-residential buildings the change was 1.05%. Figure No.3 shows the percentage of change in the record figures for equipment, labor and other cost for the first quarter of 2015.
Figure No.3: The percentage of change in the record figures for equipment, labor and other cost for the first quarter of 2015.