Dublin, May 19, 2025 (GLOBE NEWSWIRE) -- The "United Arab Emirates Construction Industry Databook Series - Market Size & Forecast by Value and Volume, Q1 2025 Update" has been added to ResearchAndMarkets.com's offering.
The United Arab Emirates (UAE) construction market is on a significant growth trajectory, projected to grow by 6.2% annually, reaching AED 189.59 billion by 2025. From 2020 to 2024, the market demonstrated a 7.3% CAGR, reflecting resilience and robust expansion, and is expected to grow at a 4.8% CAGR from 2025 to 2029. By the end of 2029, the value is anticipated to reach approximately AED 242.33 billion.
Key Insights: Residential Construction
The UAE's residential construction sector is witnessing strong growth, driven by population booms and economic development. Government initiatives and private investments bolster both the luxury and affordable housing markets. Nonetheless, there are challenges, including rising construction costs and potential oversupply, posing risks that require innovative solutions and risk management strategies.
Macroeconomic Influences
- Inflationary pressures and supply chain disruptions have increased construction costs, impacting sectors like residential construction, where materials like steel and cement have seen significant price hikes.
- Housing demand is fueled by population growth, urbanization, and expatriate investments, with notable increases in luxury and mid-tier housing prices.
- Potential oversupply risks and high global interest rates pose financing challenges, emphasizing the need for balancing project rollouts with market demand.
Major Projects and Initiatives
High-profile residential, commercial, and industrial projects are reshaping the UAE landscape. For example, Emaar Properties is launching numerous residential projects in Dubai, and Abu Dhabi is funding ambitious housing programs. Simultaneously, commercial construction is buoyed by tourism and business initiatives, while industrial construction is driven by economic diversification policies like Operation 300bn.
Government Policies
- The UAE government's housing initiatives, like those in Abu Dhabi and the Affordable Housing Policy in Dubai, demonstrate a commitment to meeting citizen and expatriate housing needs.
- Commercial development benefits from the UAE's strategic position as a business hub, supported by policies offering 100% foreign ownership and incentives for real estate investments.
- Industrial sector growth is propelled by government strategies aimed at increasing local production capacity, such as the make-it-in-the-Emirates initiative, which offers substantial subsidies and incentives.
Sustainability and Innovation
Across sectors, sustainability and technological innovation are central to new projects. The adoption of green building practices and advanced technologies like Building Information Modeling (BIM) and 3D printing reflects a trend towards more efficient, eco-friendly construction methods. These efforts align with the UAE's long-term environmental goals, including the Net Zero 2050 initiative.
Future Outlook
The UAE construction sector remains poised for growth, driven by strategic investments across residential, commercial, and industrial projects. Major infrastructure investments, coupled with regulatory frameworks supporting public-private partnerships, are set to maintain the country's competitive edge as a global hub for commerce and tourism.
Overall, the UAE's construction landscape is characterized by robust economic growth, innovative regulatory policies, and a strong emphasis on sustainability, ensuring that it remains an attractive market for investors and developers worldwide.
Report Scope
This report provides market size and forecast across 40+ construction segments for ten years from 2020 - 2029 in United Arab Emirates.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
Market Data and Insights:
- United Arab Emirates Economic Indicators
- United Arab Emirates Top Cities Construction Data
- United Arab Emirates Residential Building Construction Coverage
- United Arab Emirates Residential Green Building Construction Coverage
- United Arab Emirates Commercial Building Construction Coverage
- United Arab Emirates Commercial Green Building Construction Coverage
- United Arab Emirates Industrial Green Building Construction Coverage
- United Arab Emirates Institutional Building Construction Coverage
- United Arab Emirates Institutional Green Building Construction Coverage
- United Arab Emirates Infrastructure Construction Sectors
- United Arab Emirates Green Infrastructure Construction
- United Arab Emirates Construction Cost Structure Analysis
For more information about this report visit https://www.researchandmarkets.com/r/feu2as
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