Currently the Asia Pacific block is considered as a global recovery catalyst. The region is a promising construction investment destination with a strong potential. An evidence in support of that fact is its reported contribution of 11% to the global gross domestic product over the last two years.
International companies from around the world are now looking for investment opportunities in the Asia Pacific region. This is largely attributed to the significant contributions of the region to the global constuction industry.
A great example is the Philippines. The country is an emerging hub for both business and leisure. Good infrastructure supports tourism and foreign investments. Developing the construction industry is still a challenge for the Philippines. Therefore, most new investments are expected to go to transport-related projects and road systems fixing.
In 2011, China accounted for 41% of the construction spending in the Asia Pacific. At the same time, India had a 10% share of the regional construction market. Construction spending in Japan is also projected to grow in the coming years due to earthquake and tsunami reconstruction work.
In the Middle East, Saudi Arabia stands at the top as the largest construction market in the region. Though due to the FIFA World Cup 2022 preparations, Qatar is projected to become the fastest growing construction market. Additionally, forecasts foresee that the construction sector in the Middle East will be incited by infrastructure investments related maily to the energy sector projects. Therefore, in order to pace up with the expanding construction worldwide market, Gulf countries need to maintain strategic collaborations.
The construction industry in UAE is witnessing a fast track growth. That is triggered by on-going projects, investment into green open spaces and the strong government support. In 2012, the value of UAE construction market was estimated at $39.4 billion. Currently, industry projections estimate a rise at a compound annual growth rate of about 9.5% during 2012-2016 period.
In addition, government policies are very favorable to the sector. Regulations permitting non-UAE national freeholds and leaseholds are attracting massive amounts of foreign direct investment into construction. More and more foreigners are now looking to acquiring properties across the emirates. Such investors contribute to the overall construction sector growth.
Recent reports suggest that UAE’s construction market has returned to nearly full capacity. That is in terms of estimated real GDP growth, abundant leisure and tourism industry sectors and the ability to rise debt funding. The combination of these factors softens construction price levels. Hence, investment in a major pipeline construction projects gains momentum.
If construction is so high then how is it that so many projects in DSC (Dubai Sports City) have not been completed and may never be completed. Is no one interested in trying to salvage what investors paid for 6 years ago and are still waiting for some miracle to occur. It appears that no one cares or has the foresight to what has gone wrong and ensure that this sort of thing where developers have been able to take money and not build never happens again.
In many areas of Dubai and in general across the UAE construction of many projects is delayed indefinitely. But still many projects progress fast and we see workers building 24/7. All investors are struggling to resolve their issues individually, but many actually do that. For example, DAMAC delayed many projects during the past 5 years, but not it is building with extra capacity.
Just be proactive with your issues and follow up until eventually one day this will be resolved. At least this is the attitude at our camp 🙂