The combined value of 7,488 active building projects in the UAE reached a whopping $228 billion by the end of June despite the weaker global economic growth scenario, said a report.
Active building projects constitute all types of commercial and residential buildings but not catering to education, healthcare, hospitality, retail sector which are in concept, design, tender, under construction or on hold.
Of these, about 1,378 buildings worth $89.9 billion have been put on hold, according to BNC Network, a key project research and intelligence provider in the Middle East and North Africa (Mena) region.
The building projects constitute 82 per cent of all active projects in the UAE’s urban construction sector and in dollar terms these projects account for 44 per cent of the total estimated value, it added.
Of the total 7,488 building projects, 1,059 belong to the high-rise category exceeding 15 floors, with a combined project value exceeding $100 billion, said the BNC report.
The number of mid-rise projects with four to 14 floor levels has reached 2,483 with a value of $66 billion, while the number of low-rise projects stood at 3,946 with a value of $61.9 billion, it added.
“The strong project pipeline is a reflection of the healthy construction sector, despite weaker global economic growth scenario – an indication that the UAE real estate and construction sectors are defying the global trend,” remarked Avin Gidwani, the chief executive of BNC Network.
“While the lower oil price might have dampened the investor appetite, developers and contractors are going ahead with the building projects as planned. A number of these buildings are being developed to meet the anticipated rush during the Expo 2020 mega exposition,” he added.
As per the latest BNC Intelligence report, a total of 5,276 projects worth $99.4 billion are currently under construction and tendering phase. Also, a total of 57 building projects with a combined estimated value of $2.2 billion have moved to construction from other stages over the past month. “Most of these building projects are expected to be completed by October 2020 – before the World Expo 2020” stated Gidwani.