The UAE's interior and fit-out market is set to witness a steady
growth in the coming years, driven by new and renovation projects across
the residential sector and hospitality, experts said.
"There are
multiple factors driving growth in the interiors and fit-out sector in
the UAE," said Amit Yadav, head of Marketing at 2XL Furniture &
Home Dcor. "New residential projects are most certainly one of the
biggest reasons given the scale of construction in the country. This
segment is going to gain further momentum, with many of the projects
reaching completion in preparation for Dubai Expo 2020. Refurbishments
also continue to be a key demand driver in the industry and is very
significant in terms of soft furnishings."
According to data by
Ventures Onsite, the interior fit-out market in the UAE is one of the
GCC's fastest growing industries and is expected to be worth $973
million by 2022. Non-oil growth in the GCC is projected to rise from 3.3
per cent in 2019 to 3.5 per cent in 2020. Buoyant oil prices and a
strong resurgence in the GCC's economic growth prospects are expected to
fuel renewed growth across the region's construction industry. The GCC
region's construction sector is tipped to see a 12 per cent year-on-year
rise in the value of new contractor project awards in 2019.
Furthermore,
the GCC building construction projects expected to be completed across
all sectors are forecast to be worth $74.97 billion in 2019. The overall
GCC interior contracting and fit-out spend across all sectors is
expected to be worth $9.4 billion in 2019.
Raneesh Mundon, project
manager at ECC Renovations, said that the interior fit-out market for
the residential sector in the UAE is steadily growing, and is expected
to become the largest, surpassing the hotel and commercial sectors. "Our
business model has evolved to cater to this booming segment that makes
up for Dh1.2 billion of the total UAE interior fit-out market, which is
expected to be worth Dh3.5 billion in 2022."
Ammar Hayani,
managing director of Porcelanosa Dubai, noted that the UAE, being a
cosmopolitan country with residents from over 200 nationalities, boasts
an interior design sector is deeply influenced by worldwide trends. "The
UAE is an example of a modern pioneer country with emblematic projects
being launched regularly with astonishing interior design requirements.
As the population in the country is growing, more residential projects
are being launched, which directly impacts the growth of the interiors
and fit-out sector."
Like Yadav, he identified a rapid growth in
the renovations sector. "Whatever was trendy four to five years ago
might not be in line with the current design tendencies. Moreover, the
attractive prices in the real estate sector in the UAE today have
encouraged many expatriates to buy property. Most of the freehold
projects have been built by massive developers that go for a standard
contemporary design approach. Many property owners are now renovating
these properties to fit their personal tastes and adapt to the current
fashion interior design styles. Furthermore, the UAE has many hotels to
accommodate the increasing number of tourists. In the hospitality
sector, renovation is required every 10-12 years, which leads to a
growth of in the renovations sector."