Out of the box

The rise in the price of construction worries the citizen

Ismail Al Hammadi

February 22 2022

The latest press report published in a local newspaper last week on construction prices in the country, circulated widely among the citizens' brothers in their personal accounts on social media platforms.

The report indicates an increase in the price of building meters in the local market by 12% during the current month.

This post on the Twitter blogging site of one of the citizen brothers sparked controversy among his followers, and the comments and visions of the participants varied. That you face to complete the house of life.

One commentator says: “The citizen is very tired and is supposed to have the support of the government.” Another commentator says: “Unfortunately, I stopped construction indefinitely!” A third commented: “Some were forced to stop construction in the hope that prices would go down.”

In a fourth comment on the publication, we read: “In this case, the proportion of housing loans must be raised to match the size of the increase in construction.” Another believes that the price increase is unjustified, while another commentator explains that the rise is due to the current high inflation, and it will double after the implementation of the 9 tax %, while the latest rise is due to the increase in housing loans. From his point of view, the solution is to stabilize prices and not increase the loan.

A commentator said that the increase in inflation rates in all countries of the world is putting pressure on the prices of building materials, transportation and others.

Each sees the appropriate reason and solution according to his point of view, and what he sees fits his capabilities, and the comments were not free from asking the competent authorities to intervene and control prices, and other comments were not free from attacking suppliers and speculating in prices.

The truth is that the increase in construction meters is an expected and inevitable increase, due to the global inflation wave that hit the world, and the fluctuation of supply chains in 2020, whose negative effects are still affecting all global markets today.And the local market is not isolated from these markets, and it will certainly face what the world economy is facing, and for this reason, the increase in construction loans has nothing to do with the increase in the prices of building materials. Housing construction projects for citizens have stopped, or will stop, as some have indicated, which affects the pace of their progress and their completion on time, while the rise in the construction price is expected to affect the high selling price per square meter of real estate, and thus it will be another motive for the rise in real estate prices in the market to cover The cost of construction, and this is what buyers will not absorb, and it may affect the activity of the market, which is expected to have double activity this year.

Although this increase is global and is not limited to the local market only, this does not deter us from joining our voice with those of our brothers, and extending an invitation to the competent bodies to intervene and provide the necessary support to those concerned to complete their construction projects and provide appropriate solutions, as we are always accustomed to their intervention in such Such situations, to avoid delays in construction, and to spare the real estate sector entering another level of high prices that may negatively affect its growth.

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