Average price of one dirham per meter of construction. Contracting companies issue competitive offers after the decline in iron prices

September 24

 

The local construction market is witnessing the offering of competitive prices by contracting companies, which reached the average price per square meter of construction to 2,800 dirhams during the third quarter of the year, while specialists in the sector attributed this to the decline in the prices of basic building materials, especially rebar and cement, at rates ranging between 5 and 15% compared to prevailing prices. During the first half of the year, this reinforced the efforts of contracting companies to move the market by establishing attractive prices that motivate construction project owners and increase the movement of awarding contracts, especially in the most widespread construction activities.

 

Pricing regulations

 

Iron price regulations from local suppliers indicated that the price of iron manufactured in the country continued to reach competitive prices, reaching an average of 2,300 dirhams per ton, compared to a previous average price of 2,500 per ton at the beginning of the year.

While recent data issued by the Arab Iron and Steel Union showed that the prices of imported rebar, especially Turkish steel, continued during the month of September to remain stable at the same prevailing levels at the beginning of the third quarter, at a level of less than $600 per ton (2,200 dirhams), down by about 14% compared to its prevailing price with… At the beginning of this year, the amount was $700 (2600 dirhams).

Relative stability

In turn, cement prices in the local market, according to suppliers, became at a minimum of 10.5 dirhams, compared to a previous price of 11 dirhams per package, while the highest price for some high-quality types maintained its level between 13 and 15 dirhams. On the other hand, other materials continued to be relatively stable, including sand, ready-mixed concrete, and bricks. And other materials needed for basic construction operations.

The current period has become favorable for the momentum of projects, according to the projects official at Enjaz Company, Ahmed Hamdi, in exchange for the low and competitive price offered by contracting companies in connection with the low levels that iron prices have reached, especially local iron, with its decline among suppliers from a price ceiling exceeding 2,500 dirhams at the beginning of 2023 to a competitive average. It currently amounts to 2,300 dirhams, according to the supply quantities.

 

The prices of materials such as cement also witnessed slight changes according to the type of items, while the prices of other materials continued without significant changes, such as sand, ready-mixed concrete, and others.

Contracting companies set different levels in the price per square meter of construction, but in general they remain close, and may increase or decrease relatively according to the offers put forward by contractors to attract customers, especially in light of the growth of projects, indicating the presence of momentum in the market.

 

The price of a square meter of construction has continued to decline since last year, according to what the project manager of a local contracting company explained, as the cost reached record levels at the beginning of last year in light of the noticeable increase in the prices of rebar.

 

While the price began to decline to an average of 3,000 dirhams at the beginning of the year with the increasing quantities of imported iron and the competitiveness that reduced the prices of the local product, then it has now stabilized at an average prevailing throughout the third quarter of about 2,800 dirhams per meter. The competitive cost and the diversity of offers presented by contractors contribute to attracting housing and project owners. Whether to accelerate their work and regularize projects or to start new projects by investors.

Price and cost

As for the project manager at a contracting company in Abu Dhabi, Ayman Jamal pointed out the importance of differentiating between the prices of a basic construction meter, whether in large real estate projects or in citizen housing projects, and the subsequent cost associated with special finishing works, such as cooling systems and others, which may be added to the basic cost. For construction.

 

 

 

 

He stressed that the price per square meter of construction actually witnessed a low prevailing level throughout the third quarter of the year compared to its counterpart in the same period last year, linked to many factors, including project areas and the size of contracts, in addition to the prices of basic building materials, which are witnessing decreases according to the quality of materials between 5 and 15%. During the current year, compared to the prices that prevailed from the middle of last year until the first months of this year, which helps contracting companies in offering an attractive price to customers.

 

While he linked the continuation of low costs until the end of the year to the continued stability of iron prices, especially local iron, which is a condition for construction in some local construction projects.