Opinions | Editorials
Soaring prices hit real estate
Soaring prices of building materials are adding to inflation in the country, leading to an increase in property prices - and forcing investors to count extra money.
- Gulf News
- Published: 00:04 July 21, 2008
Soaring prices of building materials are adding to inflation in the country, leading to an increase in property prices - and forcing investors to count extra money. Building materials, including cement, rebars, and aluminum along with labour costs represent the major cost factor in the construction industry. Price stability, therefore, is important to retain investor confidence in the sector.
Prices of construction materials are continuously rising, led by steel, which nearly doubled during the past eight months. This means contractors are having to rethink their strategy and hedge materials to reduce risks. Although this is primarily due to rising demand and factors linked to the global production and supply chain, the construction community and the government collectively need to develop a strategy for materials safety plan, including storing and hedging.
The UAE Contractors' Association could come up with a solution to the problem by engaging with the industry leaders, before the situation worsens to the magnitude of a crisis.
Share this article
More from Editorials
More from Opinions
Popular in Opinions
-
Speak your mind
Company culture
How can you change a company culture if necessary?
Opinion Editor's choice
-
Tel Aviv's hydra-headed monster
It's outrageous that in all probability Israel will once again be allowed to get away
-
Beating the drums of war
Tension is escalating between Hezbollah and Israel hinting at a new battle
-
Making a pitch for talks with Taliban
Karzai needs to win Pakistan's confidence before dialogue with the militants
