Qatar construction costs higher than the UK
EC Harris report finds that sustained pipeline of work will see construction costs rise
EC Harris has said costs of infrastructure projects is rising steadily this year in parts of the Middle East and other growing markets including Asia-Pacific, and North America.
According to the consultancy’s ‘2012 International construction costs’ report, which benchmarks building costs in 53 countries, construction costs in these regions are closing in on prices in Western and Northern Europe, which historically is the most expensive region of the world for the industry.
Construction costs in Qatar has become higher than inthe UK, the study said.
“In markets like Qatar and Canada where capital investment has been focused on long-term infrastructure projects, there will be a sustained pipeline of work which is likely to see construction costs rise even further on both a short and medium term basis,” said Mathew Riley, group head of cost and commercial at EC Harris.
In contrast, construction costs in Saudi Arabia are substantially lower than in the UAE and Qatar despite a rise of more than 10% was recorded over the past year in the Kingdom, the report said.
“Most countries across the region depend heavily on cheap labour from Asian markets, which is continuing to keep construction prices in check. But growing demand, particularly in Saudi Arabia and Qatar, could create a skills shortage that may see prices escalate in the UAE,” the report said.
