Dubai Construction Costs Index Drops by 0.11% in 2019
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The construction costs general index drops by 0.11%, as such reached 107.60 during 2019 compared to the previous year, which amounted to 107.74. The general index for non-residential buildings has dropped by 0.29% and for residential buildings by 0.06% compared to the previous year.
The main reason behind the decrease in the construction costs general index is the decrease in the prices of raw materials as well as the materials used in constructions recording a decrease of 0.98% during the current year compared to the previous one which can be attributed to the decrease in the prices of the manufacturing industry by 1.07%, which resulted from a decrease in the prices of the refined oil products by 6.97%, basic or base metals by 6.59%, computers and electronic and optical products by 5.02%, electrical equipment by 2.49%, wood besides its products excluding furniture by 1.17%, nonferrous metal products by 1.03%, furniture prices by 0.82% and rubber products and plastics by 0.73%.
On the other hand, the costs of equipment, labor and other costs have increased by 1.20% compared to the previous year as a result of the increase in labor wages by 2.30%.