Both international & regional interior design companies in Dubai and Abu Dhabi say demand for interiors & fit-outs have gone up over the last year with the announcement of a number of residential, hospitality & retail projects.
Many construction projects that are expected to be completed by the end of this year in the Gulf Cooperation Council (GCC) countries, and are estimated to valued at $128.46 billion, up 92 per cent compared to 2013, according to a management consultancy.
The medical, residential, corporate and hospitality sectors are likely to account for more than half of the market, with shares of 24.43 per cent, 23.34 per cent and 22.64 per cent, respectively.
“The UAE market, and the Dubai market especially, is leading the way for the many different types of development. These new projects that are in different sectors will require fit-outs,” said CEO of Abu Dhabi-based Galaxy Trading.
“The business is booming in the UAE and there’s good demand. After the announcement of the World Expo 2020 [last November], everyone is more encouraged to come and develop,” he added.
While demand for interior fit-outs is up across different sectors, the most growth is seen in the residential sector, Al Raisi indicated. He was speaking during the International Interior Design Exhibition (Index 5/2014), at the Dubai World Trade Centre.
According to estimates by consultancy JLL, 39,000 homes are to be delivered in Dubai over the next two years, up 9 per cent over the existing total stock of 365,000 units.
The UAE’s interior and fit-out market is expected to be valued at $2.73 billion this year, according to Ventures Middle East data. The country accounts for 35.5 per cent of the GCC’s interior fit-out market. Estimated expenditure on interiors and fit-outs in the region stands at $9.57 billion, up 29.63 compared to 2013.
Demand for interior fit-outs has strengthened in 2014 compared to 2009-2012, “People are more willing to buy houses than in previous years. There are more hotels being built in the UAE and some GCC countries,” & “Dubai is a big market. You have here multinational companies from Europe and Asia,”