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Index of Dubai Construction Costs Rises Slightly in 2016

Image: Dubai Statistics

Image: Dubai Statistics


Dubai Statistics Center (DSC) reported on 6th July 2017 that the general index for construction costs in the Emirate of Dubai stood at 100.66 in 2016, with a slight increase at the clip of 0.06% compared to 2015 index of 100.60. This increase is attributed to the rise in raw materials index from 98.73 in 2015 up to 98.96 in 2016 within the context of the increased prices of construction raw materials by 0.23%. Meanwhile, the index of equipment, labor and other costs went down to 103.22 in 2016 measured up to 103.41 in 2015, reflecting a decline of 0.19%.

The rise in the prices of raw materials used in constructing buildings is attributed to the higher prices of quarry materials by 11.63%. Notwithstanding, the prices of manufacturing materials dropped by 0.27%. Prices of raw materials used in residential buildings increased by 0.31%, while prices of non-residential raw materials dropped by 0.10%. Prices of quarry materials rose by 11.63% as the prices of stones, sand and gravel have jumped by 11.63%. The prices of these materials increased by 11.63% in residential and non-residential buildings.


Manufacturing Materials

Index has dropped by 0.27% as the prices of refined petroleum products dropped considerably by 32.89%, the prices of basic metal products (construction steel and aluminum products) by 7.04%, furniture prices by 3.18%, computer, electronic and visual products by 2.79%, prices of other equipment and machinery; e.g. taps and clasps by 1.46%, chemical and chemical products' prices by 1.27%, wood and wood products, excluding furniture, by 1% and other nonmetallic metal products, which include basic materials such as cement and cement products, by 0.37%.

On the other hand, the prices of electrical equipment, which includes electricity distribution devices and wires, increased by 6.09%, prices of rubber and plastic products by 2.94% and prices of metal products; e.g. tanks and containers rose by 2.62%.

Wood prices went down by 1% on account of a priced decline of sawn and swabbed wood by 3.70%, as well as prices of wood products, e.g. chips, sheets of compressed wood, granular wood and fiber boards by 1.44%. Change in prices was affected by 1.01% for non-residential buildings and 1% for residential buildings.

The decline in the prices of refined petroleum products, including prices of motor fuel and liquid fuel, has led to index decline by 32.89% due to the contraction of diesel prices by 32.89%. As for prices of chemicals and chemical products, they dropped by 1.27%.

Rubber and plastic products' prices index rose by 2.94% due to the increase in plastic products' prices, including pipes, plastic hoses and their fittings by 3.71%. meanwhile, prices of other rubber products decreased by 2.70%, as well as the price index for other non-metallic mineral products by 0.37% as the prices of stones, marble and processed marble went down by 3.55% and the prices of cement, lime and plaster by 3.01%. Similarly, basic metal products decreased by 7.04%.


Electrical Equipment

Price index of electrical equipment rose by 6.09% by reason of increase in the prices of wires, other electrical and electronic cables which encompass isolated wires and cables made of steel, copper or aluminum by 11.88%, as well as the prices of electrical wiring devices, including electric current cutting and connecting devices and switches by 0.44%.

Contrariwise, index of furniture section price dropped by 3.18%. Additionally, equipment, labor and other costs index went down by 0.19% due to the decline in the cost of equipment rentals by 1.03%, and labor and other costs by 0.14%.



Prices of computers and electronic and visual products decreased by 2.79% by virtue of a decline in the prices of electronic consumer devices which include electronic visual products, such as video recording devices and electronic sound products, such as equipment complementary devices, by 4.82%, and the prices of communication equipment including transmission equipment such as transmitting and receiving antennas, by 2.77%.