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9.9% growth in Abu Dhabi’s Construction Cost Index in Q1

The Construction Cost Index,CCI in Abu Dhabi reached a level of 103.5 percent during the first quarter of 2018, an increase of 9.9 percent compared to the first quarter of 2017, according to statistics issued by the Statistics Centre-Abu Dhabi, SCAD. Construction costs also rose during the first quarter of 2018 by 5.6 percent, compared to the fourth quarter of 2017.

The statistics issued by SCAD show that the workforce category was the most important group in the index, and contributed to the rise in average construction cost during the first quarter of 2018, which increased by 19.9 percent compared to the fourth quarter of the previous year.

The cost of services included in the list also registered a rise of 15.9 percent, while the increase in the cost of construction materials reached 9.9 percent, as well as 3 percent for mechanical and air conditioning works, and 1.1 percent for equipment prices.

The cost of goods and services that are covered by the index were gathered from certified sources in Abu Dhabi, which were chosen as they represent the emirate’s building material and construction services market.

The CCI an important statistical indicator for the purposes of planning and research in various disciplines. The selected sample of items included in the Construction Cost Index basket uses actual data collected from the Contractors' Association in Abu Dhabi. The sample of sources (building materials and construction service providers) were selected in such a way to represent the market condition across the Emirate of Abu Dhabi.

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