Prices Down for Building Materials in UAE

Prices of several groups of building materials underwent changes during August 2012 compared with July 2012, with the rises ranging between 0.4 percent for paints and 14.9 percent for "construction labour", while declines ranged from 0.7 percent for "power cables" to 12.4 percent for "waterproofing products, according to Statistics Centre - Abu Dhabi (SCAD). SCAD issued today its monthly report on the prices of building materials for the month of August 2012. The report presents an analysis of the movements in the prices of the various materials used in the construction industry in Abu Dhabi retail market, comparing August 2012 prices with those of July 2012 and August 2011.

The report reveals an increase of 14.9 percent in the average wages of construction workers, in August compared with July 2012. Rises ranged from 7.1 percent for electricians to 25.0 percent for carpenters and metal fixers. By contrast, prices of the power cables group retreated by 0.7 percent, as result of the downward movement observed in all of the items constituting this group. The report also indicates a 2.6 percent fall in the average monthly prices of the cement group during August compared with July 2012, reflecting a decrease of 21.4 percent in the price per ton of "Al- Etihad Portland Cement/U.A.E" showing a decrease.

SCAD also reported lower MoM prices for the concrete group, which eased 4.3 percent in August 2012 compared with July 2012, due to proportional falls in all items of this group. A 4.4 rise was reported in the average prices of the (PVC) Pipes group due increases in the prices of (PVC Pipes\ 2 inch\ 6m\ U.A.E.) and (PVC Pipes\ 3 inch\ 6m\ U.A.E.) by 16.7 percent and 11.5 percent, respectively. SCAD's report also points to a 4.6 percent increase in the prices of the roofing materials group during August 2012 compared with July 2012.

Prices of building materials during August 2012 compared with August 2011 As SCAD's report reveals, decreases were recorded in the average monthly prices of 11 groups of building materials during August 2012 compared with August 2011. The falls ranged between 0.9 percent for "UPVC pipes" group and 25.2 percent for "wires for residential towers". The "Wires" group displayed one the largest price falls in August 2012 compared with August 2011, led by a 25.2 percent fall in the price of "wires for residential towers", followed by decreases of 18.1 percent and 14.7 percent in the prices of "wires for apartments" and "wires for small buildings", respectively.

The average monthly price of power cables decreased by 11.2 percent y-o-y in August 2012, displaying price drops in the range of 10.7 - 11.9 percent. There has been a consistent downward trend in the prices of this group since the beginning of the current year. On the other hand, rises were recorded in the average prices of certain groups during August 2012 compared with August 2011, including waterproofing products (up 1.2 percent), reflecting increases in the prices of most of the items constituting this group. In addition, the average prices of glass and transport equipment increased by 15.2 percent and 4.1 percent in August 2012 compared with August 2011. Finally, the average price of some sanitary ware items ("bathroom set without accessories" and "stainless steel sink with mixer-single" increased by 10.6 percent and 12.1percent respectively in August 2012, while the price index of bathroom set with accessories" was stable compared with August 2011.