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Construction projects worth $69.91 billion (Dh256.78 billion) across all building sectors were completed in the GCC last year, according to a study by Ventures ME. Projects worth $83.41 billion are also expected to be completed this year, an increase of 17.43 per cent, with $82.2 billion in contracts to be awarded.
The related GCC interior contracting and fit-out market, on the other hand, reached a value of $7.81 billion last year, up 8 per cent compared to 2012, and is expected to increase by 18 per cent this year.
With the residential (43.3 per cent), commercial (18.2 per cent) and educational (10 per cent) segments leading the way, the construction market enjoyed a positive performance that also saw $71 billion worth of projects awarded. Hospitality, medical and retail buildings were also completed, with total values of $4.6 billion, $2.4 billion and $1.8 billion respectively.
Saudi Arabia and the UAE are the top two in all sectors, with the exception of education and healthcare, for which Qatar ranks first with completed projects worth $4.6 billion in the educational segment (Saudi Arabia: $1.01 billion; UAE: $714 million) and $1.12 billion in healthcare (Saudi Arabia: $482 million; UAE: $570 million).
Saudi Arabia is the largest interior contracting and fit-out market in the GCC, with a 47.4 per cent share ($3.7 billion), followed by the UAE ($2.39 billion) and Qatar ($953 million).
The residential sector accounted for almost half of the overall market in the past year, with a share of 42.6 per cent ($3.33 billion). The commercial sector followed with a 17.9 per cent share ($1.4 billion) and the hospitality sector with a 13.4 per cent share ($1.05 billion).
Around $83.41 billion worth of completed projects and $82.8 billion worth of awarded projects are forecast over the year. The interiors market is also likely to grow by 18 per cent and reach an estimated value of $9.2 billion.
The healthcare sector is expected to grow by 250 per cent from $2.4 billion last year to an estimated value of $8.4 billion this year. The UAE will have the majority of healthcare buildings completed worth $3.19 billion, almost, five times the value registered last year. Saudi Arabia follows with $3.09 billion and Qatar with $1.7 billion. Kuwait's completed projects are expected to increase from $47 million last year to $317 million this year.
Despite the huge increase in the healthcare sector, the building construction market will still be led by the residential and commercial sectors, which will collectively account for more than half of the market, with projects concentrated in Saudi Arabia, the UAE and Qatar.
Interior fit-out market
Out of the interior fit-out market's estimated overall market value of $9.2 billion, the residential sector will account for 35.9 per cent ($3.33 billion), followed by the hospitality sector at 19.8 per cent ($1.82 billion) and the commercial sector at 15.7 per cent ($1.44 billion).
Source: Property Weekly