Construction projects in Dubai have been valued at a total $53.6bn (£38.2bn), with a further $337.2bn of investment at the planning stage, a report has found.
The “extraordinary amounts of investment” came despite relatively flat growth in a range of sectors, according to the Dubai Construction Pulse, compiled by Deloitte and MEED Projects.
The residential sector saw the greatest level of investment in current and planned developments at $66.4bn, despite residential property sales prices flattening towards the end of 2015.
In the hospitality and leisure sector the total development activity has been estimated at $21.2bn of projects in the execution and planning stages, despite the report predicting modest growth in 2016, with occupancy levels down by between 70-75%.
But the Dubai Department of Tourism and Commerce Marketing’s ambition of welcoming 20m tourists a year to the city by 2020 looks likely to be met, with the increase in international overnight visitors averaging 9.2% per year since 2010, the report stated.
Despite flat growth in the retail sector predicted in 2016, a total of $15.33bn is currently being spent on construction projects. Meanwhile $9.1bn has also been invested in construction projects in the commercial sector with the announcement of a number of additional projects predicted during 2016, particularly in the Dubai International Finance Centre, which has shown strong demand.
Ed James, director of content and analysis at MEED projects, said companies involved in project development in Dubai could feel “quietly optimistic for the year ahead even if activity elsewhere in the region slows down”.
“The Dubai construction market is proving resilient in the face of falling oil prices,” he added. “Notable contracts awarded in the first month of 2016, such as the $840m second phase of the Atlantis Hotel on Palm Jumeirah, Nakheel’s $380m Palm Gateway Towers, the $370m ICD Brookfield Place and Wasl’s $190m Mandarin Oriental Hotel, show that developers are confident in the market’s long-term prospects.”