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According to an international construction market survey by Turner & Townsend, Doha is positioned as the second-most expensive city in the Middle East to build in
Doha: Qatar’s investments in its Transportation Master Plan 2050 (TMPQ) are expected to foster diversified construction projects, aiming to increase the number of arrivals, said a research analyst.
In an interview with The Peninsula, Colin McBride, Director of Cost Management, Qatar at Turner & Townsend, said: “Our transport networks, in particular, are undergoing a period of expansion as the government invests $2.7bn [QR9.7bn] in its Transportation Master Plan for Qatar to serve our growing numbers of residents and visitors. Projects underway include the Doha Metro, the Bahrain-Qatar causeway, and the multi-billion dollar Sharq Bridge, which will connect Katara Cultural Village with Hamad International Airport.”
According to an international construction market survey by Turner & Townsend, Doha is positioned as the second-most expensive city in the Middle East to build in.
Explicating the key drivers of increasing demand in the sector, the official noted “Our built environment is evolving in line with the State’s mission to diversify the economy and position Qatar as a leading travel and tourism hub within the Middle East.”
He stressed that “This development is driving up the price of construction as clients across real estate, as well as infrastructure, compete for skills and materials, with the average cost of construction in Doha now reaching $2,096 per m2.”
In the past decade, Qatar implemented tremendous infrastructure and construction projects for the enhancement of international events.
“Development to support Qatar’s involvement in major sporting events has also been driving high demand over recent years, from the country’s successful hosting of the 2022 FIFA World Cup to the 2030 Asian Games, which the local industry currently has its sights on,” McBride said.
Although the mega sporting event in 2022 played a pivotal role in surging demand for construction projects, the industry analyst noted a downward trajectory shift for construction costs in 2024.
He said “The 2022 FIFA World Cup was a major catalyst driving market growth, spurring investment, and pushing up construction prices. Market conditions have since cooled in Qatar, and we expect this trend to continue, with the rate of construction cost inflation anticipated to fall from 3.5 percent in 2023 to 2.5 percent this year.
On the other hand, GCC cities including Riyadh and Dubai are expected to witness the inflation cost stable at 5 percent by the end of the second half of 2024.
McBride said, “In contrast, the market remains hot in Riyadh, the most expensive city for construction in the region at $2,593 per m2, with cost inflation set to settle at 5 percent in 2024, as the Saudi government pushes forward state-backed giga-projects.
“In Dubai, which comes third in the rankings, the continuing expansion of the tourism industry is a strong source of demand driving similar levels of cost inflation at an anticipated 5 percent,” the market expert added. |
