A Slight Increase in Construction Costs Index in Dubai
A DSC report showed that the general index of construction cost till the third quarter of 2015 has increased to 100.87, representing a slight increase of 0.05%, compared to the general index till the third quarter of 2014, which was 100.82.
This came as the result of the increase in the general index of equipment, workforce costs as well as other costs from 102.85 till the third quarter of 2014 to 103.46 till the third quarter of 2015, where it recorded an increase of 0.60%.
Also, the general index of raw materials decreased from 99.46 till the third quarter of 2014 to 99.14 till the third quarter of 2015, due to the decrease in the prices of most of the materials used in construction, as it recorded a decrease of 0. 32%.
The prices of raw materials used in construction till the third quarter of 2015 decreased slightly by 0. 32%, due to the decrease in the price of manufacturing materials by 0.41%, while the prices of quarries increased by 1.75%. Also, the prices of raw materials used in residential buildings decreased by 0.27% and 0.52% in non-residential buildings.
The prices of quarry materials increased by 1.75%, due to the increase in the prices of raw rocks, sand and gravel by 1.75%. It is worth noting that the prices of these materials increased by 1.75% in residential buildings and 1.74% in non-residential buildings.
The fluctuation in the prices of manufacturing materials and its ups and downs led to stopping the index from decreasing by 0. 41% for this category. The price increase in the categorized items came as follows:•The prices of furniture increased by 12.08%, the prices of shaped metal products such as reservoirs and tanks by 5.62%, the price of other non-metallic minerals that include important basic materials such as cement and cement products by 0.87%, the prices of rubber and plastics by 0.40% and the price of computers, electronic and visual devices by 0.11%, while the prices of the following categorized items decreased: •The prices of refined oil products drastically decreased by 26.85%, the prices of principal metal products, such as the reinforcing steel and aluminum products decreased by 9.04%, and also the prices of electrical appliances, including electricity distribution devices and wires decreased by 1.61%. The prices of timber and its products other than furniture decreased by 1.33%. The prices of chemicals and chemical products decreased by 1.05%. The prices of other equipment and tools such as water taps and water valves decreased by 0.79%.
When studying the index as regards buildings, it was noticed that the index for non-residential buildings decreased by 0.61% and for residential buildings by 0.36%.
Timber and its products other than furniture
The prices of raw materials under this category decreased by 1.33%, due to the decrease in the price of sawed or flattened timber by 1.93%. Also, the prices of wooden products such as wooden sheets, compressed wooden panels, fine-grained wood and MDF by 1.81%. The change in price was at the equal rate of 1.33% for both residential and non-residential buildings.
The decrease in the prices of refined oil products, represented in the prices of engine fuels and liquid fuels impacted the decrease of this category's index by 26.85% due to the decrease in diesel prices by 26.85%. It is worth noting that the rate of change was similar for all types of buildings at 26.85%.