Construction costs in the Gulf increased by 50 per cent in the first half of 2008, in comparison to a 30 per cent increase recorded in 2007, according to Al Mazaya Holdings, a regional real estate developer.
Al Mazaya attributes the rise in costs to inflationary pressures, which were raising the cost of building materials and causing both skilled and unskilled workers to leave the country.
Executive vice-president at Al Mazaya Holding, Salwa Malhas, said the cost of materials had risen by 50 per cent on average and even more for some items.
Al Mazaya attributed the labour shortage to the deportation of thousands of illegal Asian workers "in a bid to solve the demographic imbalance and to put an end to continuous strikes by labourers who are unable to cope with the rising cost of living," a statement said.
Al Mazaya attributes the rise in costs to inflationary pressures, which were raising the cost of building materials and causing both skilled and unskilled workers to leave the country.
Executive vice-president at Al Mazaya Holding, Salwa Malhas, said the cost of materials had risen by 50 per cent on average and even more for some items.
Al Mazaya attributed the labour shortage to the deportation of thousands of illegal Asian workers "in a bid to solve the demographic imbalance and to put an end to continuous strikes by labourers who are unable to cope with the rising cost of living," a statement said.
