30% Increase In The Cost Of Building Construction Material

There is no doubt that the outbreak of the Covid-19 pandemic and the accompanying measures taken by the world governments to contain it have negatively affected the economies including that of Kuwait.

This has reflected on many important sectors, including the contracting, construction and real estate sector.

On the impact of these repercussions, construction and building material prices in the local market have jumped to unprecedented levels, as a result of the increase in the costs of shipping and transportation, and the scarcity of experienced workers who were outside the country when borders were closed and this adversely affected the citizens due to the rise in daily wages

According to specialists in the contracting and construction sector, the cost of building a house on an area of 400 square meters witnessed a remarkable increase, by almost 30 percent and the cost of structure short up from between 65 and 70 thousand dinars before the pandemic to about 85 thousand dinars.

The cost per cubic meter for a plot of 400 square meters (containing 500 cubic meters of concrete) amounts to a maximum of 180 dinars, knowing that those prices have increased by about 200 percent during the past five years (since 2016).

A contractor says that the prices of building materials in Kuwait has increased by 40 percent after the Corona crisis.

On the other hand, an official of a contracting company pointed out that the cost of the usual electrical connections and installations for a house of 400 square meters – one floor – is currently about 7,500 dinars, while its cost before the Corona pandemic was approximately 6,500, an increase of 15.3% (price may vary depending on the number of points and specifications required).
The Al-Qabas daily quoting sources cited several reasons for rising costs including:
1 – The high prices of construction materials.
2 – Scarcity of human resources and an increase in their wages.
3 – The difficulty of issuing visas to bring in regular and technical workers from abroad.
4 – A significant increase in freight and transportation prices.
5- An increase in marine insurance rates on construction cargo ships.

 

SOURCE : TIMESKUWAIT

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