Active residential and commercial building projects’ value in Abu Dhabi hits $62.8 bn, BNC report shows
Almost 76% of the 1,600+ active urban construction projects in Abu Dhabi are Residential and Commercial buildings
Date: Dubai, UAE, April 18, 2018
Value of UAE’s over 8,300 Residential and Commercial building projects is estimated at over US$237 billion
Value of 1,200+ Residential and Commercial building projects in Abu Dhabi has exceeded US$62 billion
Value of over 6,200 Residential and Commercial buildings currently in progress in the UAE – in tender and under construction – is estimated worth US$105.1 billion
BNC tracks over 28,000 live construction projects with a value exceeding US$7.7 trillion
The total value of the 1,200+ residential and commercial building projects in Abu Dhabi has exceeded US$62 billion (Dh230.45 billion), according to BNC Network, the largest project intelligence provider in the MENA region.
Of the 1,600+ active projects in the urban construction sector, 76 percent belong to residential and commercial buildings category. However, when split on value of the projects, 41 percent of the projects belong to the residential and commercial buildings category while the remaining 59 percent belong to other urban construction projects such as hotels, hospitals and malls. This means that the average value of other urban construction projects is higher than that of the residential and commercial buildings projects.
Around 700 projects with estimated worth of $21.6 billion belong to low-rise Residential and Commercial buildings while 350+ belong to mid-rise categories worth $16.5 billion and 210 worth $24.7 billion are high-rise towers.
Approximately 700 projects worth over $16 billion of the total projects are under construction while over 60 residential and commercial building projects valued at $2.3 billion are currently being tendered. Approximately 130 projects worth $7.3 billion are in preliminary stages of the construction life-cycle..
“Abu Dhabi is a major economic power backed up by large hydrocarbon reserves that puts the emirate’s economy on solid ground. However, low global oil prices in the period of 2014-2017 compelled oil dependent economies to undertake conservative growth strategies, resulting in a slowdown in construction activities,” Avin Gidwani, Chief Executive Officer of BNC Network, says. “This is expected to be a temporary phenomenon as crude prices hover around the psychological US$ 60-70 per barrel, investment in housing projects and other development initiatives is expected to increase.
“We would expect to see a surge in the construction activities in Abu Dhabi in the next few years, if the current level of crude oil prices hold. As it stands, major Abu Dhabi developers have already started announcing new projects, especially in the affordable home segment.”
As per BNC Construction Analytics, Abu Dhabi projects are part of the 8,300 + active residential and commercial building projects in the UAE, valued at over US$237billion (Dh871.25 billion). say. Of these, approximately 1,100 high-rise residential and commercial building projects represent over US$108 billion (Dh399.28 billion) in value, 4,700+ low-rise building projects represent almost US$68 billion (Dh251 billion) and 2,500 odd mid-rise buildings worth almost US$60 billion (Dh220.93 billion).BNC data shows Residential and commercial buildings worth over US$105 billion (Dh385.7 billion) are currently being tendered or are currently under construction – while projects valued at over US$90 billion (Dh333.6 billion) are on hold and projects estimated at US$41 billion (Dh151.9 billion) are in either concept or design.
In terms of the number of projects, 84 percent are residential and commercial buildings while the remaining 16 percent belong to the other urban construction projects. However, in terms of the value of the projects, residential and commercial buildings represent 45 percent of the projects. This means that 16 percent of projects constitute55 percent of the total value of projects.
“The UAE’s construction project market is currently being driven by the anticipated footfall demand for the World Expo 2020 – that necessitated the upgradation and expansion of infrastructure as well as the addition of new housing and hotel projects – to accommodate a large number of visitors to the emirates,” Gidwani says. “Over the course of the next two years most of the currently ongoing construction work will be completed.”