Qatar’s construction inflation could peak to 18% during the World Cup building boom between 2016 and 2019, potentially adding billions to the cost of development and overheating the economy, according to a report.
However, Qatar could mitigate the risks by encouraging local companies and global contractors to combine their skills; developing a Qatar-wide solution in advance for the location and quality of labour accommodation; revamping the procurement processes; and shifting as much construction away from the anticipated peak construction period and into the post-tournament construction, E C Harris, a global consultancy, said in its latest report.
By 2021, the value of the construction industry is forecast to almost double to $15bn per annum in real terms, it said quoting Business Monitor International figures.
Highlighting that growth in output on this scale is “unprecedented” in Qatar; the report said “unless urgent steps are taken, it is predicted that construction inflation will peak at 18% per annum over the next decade.”
No comments:
Post a Comment