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Decline in Construction Costs in UAE Augurs Well for Real Estate Sector
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With global credit crunch gradually spreading it's tentacles in all the spheres of activity in the UAE, there's at last some respite for real estate sector. Construction cost per square feet has dropped by an average of 30 per cent compared to the last quarter of 2008 in the UAE, even as building material prices continues to drop further.
The drop is between Dh50 and Dh100 in Dubai, Abu Dhabi and other emirates. Some of the factors contributing to the sudden drop include the massive fall in steel prices and the significant fall in prices of other materials such as aluminium, wood and glass and diesel by an average of almost 15 per cent to 45 per cent.
This augurs well for the property market in the UAE as it would bring down the cost of construction for real estate developers and buyers will also privileged with competitive prices when it comes to purchasing real estate units.
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