The costs of manpower and some building materials used in construction projects in the UAE have fallen recently.

The average cost of construction labour dropped by 20.5 per cent, while diesel prices edged down by 8.4 per cent in April when compared with March 2020. Steel prices also declined by 2.7 per cent, according to the latest figures released by the Statistics Centre – Abu Dhabi (SCAD).

Compared to the same period last year, the average cost of construction labour fell by 28.09 per cent, while diesel prices posted a 17.3 per cent decline. Power cables also dropped 12.2 per cent annually.

Manpower, steel, diesel and power cables account for some of the biggest input costs for builders. While the decline comes as a relief to the industry impacted by the coronavirus pandemic, other materials have posted price hikes.

The prices of cement went up by 0.9 per cent, concrete by 0.1 per cent in April compared to a month earlier.

The average prices of natural stone climbed by 6.4 per cent year-on-year, while wires for small building and stainless steel sinks with single mixer jumped by 3 per cent and 2.6 per cent, respectively.

Developers and contractors in the UAE have had to deal with sluggish civil works, delayed delivery of materials and limited workforce, while some suppliers grappled with rock-bottom prices due to the pandemic.

According to Bharat Bhatia, CEO of steel manufacturer Conares, the demand for steel dropped by 50 per cent in the UAE, causing prices to fall sharply.

“The prices of steel are currently at the bottom, also due to worldwide lockdown,” Bhatia told Zawya earlier.