Building projects worth over $68.7 billion were completed in the GCC in 2012 according to an in-depth sector report. Despite being lower than previously estimated, the Gulf's construction industry grew by 48 per cent over 2011 when completed projects were valued at $46.5 billion. The report also forecasts a further 19 per cent sector growth in 2013, with completed construction projects set to reach $81.6 billion.
The value of new construction projects in the GCC is also expected to rise in 2013, with projects valued at $64.5 billion set to be awarded to contractors over the coming 12 months. This figure shows a sharp increase, up by a third (33 per cent) on the value of projects awarded in 2012 ($48.4 billion).
In 2012, residential, commercial and hospitality sectors led the GCC projects market; with $29.4 billion, $12.2 billion and $5.5 billion worth of projects completed respectively. Education, medical and retail sectors were other significant contributors, with completed projects worth $5.2 billion, 3.3 billion and $2.4 billion respectively.
In 2013, a two-paced growth is likely with residential, retail and commercial sector construction projects growing at slower rates of 4.4 per cent, 4.0 per cent and 13 per cent to $30.7 billion, $2.5 billion and $13.8 billion respectively.
However, hospitality, educational and medical projects will grow at faster rates of 27 per cent, 69 per cent and 79 per cent respectively to $27 billion, $8.8 billion and $5.9 billion.
The hospitality and educational sectors of the GCC building construction industry will see their market share by value of projects completed in 2013 grow tremendously by 137 per cent (from 3.8 per cent to 9 per cent) and 134 per cent (4.7 per cent to 11 per cent) respectively.
Residential building projects will remain the largest segment of the real estate market in terms of projects expected to complete in 2013 with a market share of 38 per cent.
Commercial will remain the second largest real estate sector with 17 per cent but educational is set to overtake the hospitality construction segment and claim third place with an 11 per cent of the market share against hospitality's market share of 9.0 per cent.
Times of Oman