Falling construction costs, driven by sizeable slumps in the prices of building materials, have produced an effervescent real estate market in the emirate of Ajman, one contractor has reported.
“The monitored drop in construction prices will definitely boost the capacity of developers to continue the construction on their projects, and as the contracting company for one of the biggest community developments in Ajman, this presents an excellent opportunity that we intend to capitalise on,” said Fawad Sattar Dero, managing director of Sweet Homes General Contracting (SHGC).
SHGC, the in-house contracting arm of Sweet Homes Holdings, revealed that it has fast-tracked construction processes to leverage the favourable prices of building materials and pointed to recent figures from the Statistics Centre of Abu Dhabi (SCAD) and the Abu Dhabi Government office, which showed the price of cement to have dropped by an average of 1.74% over the previous three months, while aggregates and sand remained stable within the same period.
The cost of lime gypsum slumped 5.3% month-on-month to US$340 a ton, while wood products such as Malaysian red timber, concrete blocks and clay tiles held steady. Only construction steel from Turkey, the UAE, Korea and Japan rose, with a jump of 1.72%.
SHGC is currently working on the $950 million Ajman Uptown community and, like other construction firms, claims it will continue to take advantage of the opportunity offered by current economic conditions.
“As the market anticipates further reduction in prices due to global factors affecting the supply chain, our focus remains on the timely completion of all our current projects,” continued Dero.
“With the support and backing of Sweet Homes Holdings and the opportunity presented by the current development in construction prices, we maintain an optimistic view of Ajman’s real estate market.
“We are hoping that this break continues and leads to the total recovery of the market as a whole.”
Company Name: Sweet Homes
Contact Person: Aime
Country: United Arab Emirates