Construction costs in the United Arab Emirates could jump by a fifth next year on higher raw material and labour costs, Emirates Business reported on Sunday, citing consultancy EC Harris.
Costs for materials such as cement and steel could rise 19 percent during the next 12 months, London-based international real estate and construction consultancy EC Harris said, according to the Dubai-based newspaper.
Costs of materials have risen between 15 percent and 20 percent this year, the newspaper said. Construction costs rose 25 percent in 2006, the newspaper said, without giving an estimate for 2007.
An amnesty for 250,000 illegal foreign labourers earlier this year - allowing them to return to their home countries without penalty - is driving wages higher, the newspaper said.
"There is a shortage of labour," Imad al-Jamal, an official at the UAE Contractors' Association, is quoted as saying.