- Interiors account for up to 30 per cent of cost for GCC projects
- GCC spend US$4.5bn on interiors in 2010, 26% increase expected in 2011
- Interiors spend for GCC hospitality sector to grow 230 per cent in 2011
- INDEX to bring over 800 exhibitors together to meet demand for growing products and services
INDEX, the Middle East and North Africa’s largest and longest established Interiors and Design Exhibition, today announced findings from a report with Ventures Middle East. The report reveals that GCC projects spent US$4.5bn on interiors and fit-outs in 2010, and expect to increase spend by more than a quarter (26 per cent) this year. The report, which focussed on the four key pillars of the real estate sector - commercial, hospitality, residential and retail - shows that interiors account for up to 30 per cent of costs for GCC projects.
“The GCC real estate market is showing positive signs for the interiors market. With existing projects at or near completion and countries around the region expanding specifically in the commercial and hospitality sectors, there will continue to be a strong demand for interiors and fit-outs,” said Paula Al Chami, Event Director for INDEX. “Another trend we see is companies shifting focus from starting fresh projects to managing existing projects to make them more attractive, which is where interiors will play a key role.”
The growth of KSA’s retail sector leads all GCC markets with an estimated 900 per cent increase on interior spend in 2011 of up to US$343m versus last year’s spend of US$34mn, making it the second largest retail market for interiors in the region. Overall in the GCC, the retail sector remains competitive as spend on interiors continues to grow with an increase in spend of 71 per cent expected in 2011 over last year’s spend of US$384m.
For the commercial sector, which now sees companies focussing on property management rather than new projects, GCC spend on interiors is set to increase 36 per cent to US$1.5bn over last year’s spend of US$1.1bn. Led by Jeddah and Riyadh, the commercial sector in Saudi Arabia spent US$108m in 2010 on interiors and will more than triple its growth with an increased spend of US$359m in 2011. Reflecting this growth is the fact that between 2010 and 2012, 18 million m2 of office space will have become available for interiors and fit-outs in the Kingdom, which is now primarily focussing on infrastructure such as educational institutions and hospitals.
Of the key sectors in the GCC, the growth of the hospitality sector leads with an expected 230 per cent increased spend in 2011 of US$1.8bn as hotel groups aggressively expand across the region. The sector continues one of its best phases in Saudi Arabia, especially in holy cities Mecca and Medina where religious tourism is on the rise. This year the Kingdom is expected to see a major increase on interiors with spends of US$220m.
The report also said that from GCC real estate contracts issued from May to July this year, the value for interiors and fit-outs is estimated at over US$700m.
Al Chami added, “For the past 21 years INDEX has provided an important platform for architects, designers and specifiers to source interior design solutions from over 800 companies from 49 countries. INDEX will take place across an increased 10 halls at the Dubai World Trade Centre from October 22-25, 2011.”
INDEX 2011 will evolve its profile by introducing a brand new line up of six product-specific shows under the INDEX brand including Furnishings*, InRetail, Kitchen & Bathroom, Lighting, Outdoor Living and Textiles. The new product-specific shows at INDEX will showcase an impressive line up of top international manufacturers and brands, bringing their latest products, trends and design innovation to this region. The exhibition will also showcase 20 national pavilions, providing product specification by country.”
*Furnishings includes living, dining, bedroom, baby & child and commercial furniture; art, accessories & décor; finishes & coatings, flooring & wallcoverings; interior design services, installation and technology.