Opinion | 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.
Opinion Editor's choice
-
Russia, China complicit in Syria carnage
By Fawaz Turki, Special to Gulf News
By their double veto at the UN, they have chosen to back the Al Assad regime that is already wet spaghetti
-
Two prime ministers in trouble
By Kuldip Nayar, Special to Gulf News
Gilani faces contempt of court charge while Singh encounters moral responsibility in 2G scam case
-
Moving towards honest democracy
By Vladimir Putin, Prime Minister of Russia
Russia needs to unbundle power and property and separate executive power from system of checks over it
Your turn
