Despite a surge in material costs due to higher oil prices, growth in construction output continued to accelerate in the MEA region in the first quarter of 2022, according to a report by the real estate services provider JLL on Tuesday.
According to JLL, between 2022 and 2030, construction output is expected to grow at a 2.3 percent annual average rate.
Gary Tracey, Head of Cost Management, Project & Development Services, MEA, said last year economic uncertainty stemming from the COVID-19 pandemic global construction output rose by over 4 percent.
“In the MEA region, this trend has continued into 2022, driven by government vision programs and a busy project market, with the forecast 2022 tender price indices for KSA and the UAE at 6-8 percent and 4-6 percent, respectively.”
The momentum comes despite the increase in material prices caused by several factors including rising oil and metal prices.
“Prices in the near-term are likely to be impacted by the geopolitical situation, inflation, and supply and demand-side factors,” it added.