Building material costs rises

Building material prices continued to rise in Abu Dhabi in September compared to the same month a year ago as demand outstripped supply, Statistics Centre Abu Dhabi (Scad) said in its latest monthly report yesterday. The largest rise during September was recorded in transport equipment rents, which shot up 37.7 per cent on year. The next largest rise was in the prices of wire for apartments, which rose 27.1 per cent as a result of an increase in the price of electrical wire. The prices of tiles and marble rose 21.5 per cent and aggregates and sand by 21.4 per cent, the report added.However, there was a decline in the average prices of a range of building materials groups during September. These include the prices of glass, which fell by 21.3 per cent, sink stainless steel with mixer-single by 11.7 per cent and false ceiling by 4.5 per cent.However, concrete prices fell 11.9 per cent in September, compared to a month earlier. However, during the month prices of construction labour, paints, aggregates and sand rose compared to August."Prices of building materials are rising because of an increase in prices of building materials in the country of their origin. It may also be due to retailers increasing their prices to increase their profit margins," Mohammad Amerah, an Abu Dhabi-based economist, told Gulf News by telephone."The data shows growth in demand for building materials in the UAE," Amerah added.The Scad report also showed the average prices of building materials during the third quarter this year rose from the second quarter. The average prices of steel and cement increased 10.2 per cent and 8.6 per cent, respectively.Scad's monthly report on building materials prices report surveys the prices of 21 groups of commodities and services that represent the most important materials used in the construction industry, including cement, aggregate, sand, wood, steel, concrete and cement blocks.