The global coronavirus pandemic proved to be a detriment to not only the health sector but also impacted other sectors as countries scrambled to curb spread and communities altered ways of life to limit ramifications. The constructions sector in Kuwait is one that did not escape such impacts.
Speaking to Kuwait News Agency (KUNA), experts commented on the surge in construction material prices, citing shortage of manpower, transportation expenses and decrease in production as factories lowered operational capacity.
Sales and marketing manager of National Industries Company, Basel Al-Turkait, stated that locally, price rise could be attributed to the increase in disbursing residential lands, adding that construction materials price rise is estimated at 30 percent.
He commented that the company has a limited role in instating material prices, saying that plastic witnessed a 50 percent rise because of increasing demand and lack of products in the market, as some sourcing factories were shut down.
On his part, General Manager of Al-Buraq contractions company, Talal Al-Shaibani stated that expenses hiked as a result of skilled workers’ inability to travel during the pandemic, due to travel restrictions imposed at the time.
Al-Shaibani commented that such rise could negatively affect citizens and the constructions sector alike, indicating necessity of putting in place a mechanism regulating the distribution of lands so that high demand would not cause an upsurge in prices.
He also added that primary materials price rise could be due to international producers increasing exporting prices with the importing crisis during pandemic.
He explained that cost of building one square meter prior to the pandemic was estimated at KD 150 (USD 495) whereas currently it is estimated at KD 250 (USD 825), marking a 70 percent increase.
He also mentioned that a cement bag cost did not rise much, as it was worth KD 1.1 and now it is valued at KD 1.25 because of the state subsidizing cement corporations.
Al-Shaibani predicted further increase in prices following new legislations concerning the increase of Kuwait Credit Bank capital and disbursing around 12,000 residential units for the year (2020/2021).
Rami Al-Ahmadiya, a marble company manager, remarked that raw marble price witnessed a great rise because of decrease in global production and 30 increase in transport expenses as of last November.
Source: Kuwait News Agency