Prices of building materials have increased suddenly and has created a - temporary - hiccup in the UAE’s real estate and construction markets.
This might come as a surprise to many industry observers as the change on the demand-side doesn’t justify the increase in price. However, there is a reason… and let’s examine it.
Prices of almost all building materials products have gone up by 25-30 percent in the UAE. Steel prices, for example, have gone up from Dh1,800 a tonne to Dh2,600, while white wood has jumped from Dh600 to Dh1,000. The prices of oil and gas have also gone up.
To compound an already difficult situation, freight rates have increased manifold, in some cases from $1,000 to $4,000 for a container.
