Construction projects across all building sectors worth $128.46 billion are expected to be completed by this year-end, hitting a 92.06 per cent increase compared to $66.89 billion in 2013.
The expected expenditure on interiors and fit-outs is $9.57bn, 29.63 per cent more than what was spent in 2013.
The findings were conducted by Ventures ME and revealed by dmg events. The research analyses both the building construction and the fit-out and interiors markets focusing on six main sectors – residential, commercial, hospitality, retail, educational, and medical – in each of the GCC countries.
Out of a total market worth $128.46bn, the medical, residential and hospitality sectors will count for over half of the market with shares of 24.43 per cent, 23.34 per cent and 22.64 per cent respectively. The three sectors leading the way will be followed by the commercial (12.51 per cent), educational (5.86 per cent) and retail (1.09 per cent) sectors.
Compared to the previous year, the hospitality and medical sectors will register the biggest growth; the value of completed hospitality building projects is forecasted to jump from $3.68bn to $2908bn (+690.03 per cent) whereas the value of completed buildings for medical use will go up of 725.19 per cent to a value of $31.38bn from $3.80bn in 2013.
Saudi Arabia will be the country where most of the completed buildings will be located particularly in the residential ($34.39bn), hospitality ($3.85bn), commercial ($7.97bn) and educational ($4.38bn) sectors.
Qatar will register retail projects to be completed for a total value of $522m moving up in the country’s ranking from the fifth position in 2013 to the top one.
The United Arab Emirates will be at the high end of the rank when looking at the healthcare sector; out of a total market forecast to value $31.38bn, the UAE will account for $ 3.13bn – a remarkable difference when compared to the value of completed projects in 2013 at $227m.
Interiors & fit-out markets forecast
Out of an overall estimated market value of $9.57bn, the residential sector will be the largest spender with $3.30bn (34.47 per cent), followed by the hospitality sector with 20.24 per cent of the market and $1.94bn spent in value and the commercial sector with US$1.77bn (18.48 per cent).
When compared to 2013 figures, the sectors that are expected to register the highest increase will be hospitality, up 133.88 per cent to $1.94bn, and the medical sector that will almost double in value from $304m to $607m.
Saudi will rank in the top position when looking at the hospitality ($866m), commercial ($876m) and educational ($350m) sectors. The healthcare and residential sectors will see UAE at the top of the rank with $251m and $1.31bn, respectively. Of the total $315m estimated interiors and fit-out retail investment, Qatar will be the major spender with $117m.