Archive for the ‘Commercial Construction’ category

Brazil World Cup and Olympics

December 9th, 2011

Despite being the fifth largest country in the world and one of the most passionate and successful nations when it comes to football, Brazil hasn’t hosted a World Cup since 1950.Perhaps even more surprising is the fact that no South American city has ever staged an Olympic Games. So, awarding the 2014 FIFA World Cup to Brazil and deciding to hold the 2016 Olympic Games in Rio de Janeiro were probably long overdue, although no one doubted the size of the task ahead of the country. Now, however, there are serious concerns that the task is proving too great.

To some degree, Brazil has a head start because it staged the 2007 Pan American Games and built many facilities then to Olympic specifications. The result is that it has 60% of the necessary sports venues in place. But it still has major construction and renovation needs for the two events.

The World Cup is to be staged across twelve cities and the intention is to build five new stadia and undertake radical makeovers of a further seven at a cost of US$5.7 billion. Added to this is a plan to improve transport links between the venues by constructing 2,518 kilometres of new railway routes. This includes a high-speed rail link between Rio de Janeiro, Sao Paulo and Campinas.

Large investments are also due to be made in infrastructure, with telecommunications due to get $11.5 billion a year for the next five years. Major road routes, which are often riddled with potholes, are due an upgrade. Airport facilities, already under severe strain and with traffic due to double by 2014, are to receive a $3.3 billion investment.

With the World Cup expected to attract 500,000 tourists and tourism in Rio de Janeiro expected to be up 15% by 2016, there is a push to build more hotel accommodation. Rio is increasing its capacity to 50,000 rooms while its historic port area is due for a strategic regeneration. All host cities for the football are expanding their hotel networks. Overall, public works projects worth $52 billion are planned.

One outcome of all this development is a boost for green construction in the country. Olympic stadia have to be built to meet low carbon emission and low energy standards. Although the same is not true for World Cup facilities, developers are in general trying to achieve LEED certification, with four stadia having reached the standard and four others trying to attain it. As a result, the proportion of green building space in Brazil is expected to increase by 30% a year. » Read more: Brazil World Cup and Olympics

Subsidies Can Bring Dubai Construction Industry Back on Its Way!

December 9th, 2011

Dubai properties sector is not enjoying the high time now-a-days as it was doing before 2008 but according to the latest news, it can pave back the recovery path soon. There are certain factors that are required to be resolved for the quick economic growth. But what are they? Certainly, the economic factors are not only responsible for slowing down the activities of real estate sector but are causing problems in other sectors as well. Construction sector is one such sector that is being directly and indirectly affected by the rough economy. When no one is willing to buy the already constructed properties, it is useless to spend money on further construction of new properties.

Construction companies and Dubai property developers demand long-term subsidies for the new property projects to kick start. The drooping construction industry needs an immediate support from government that will help and boost the industry throughout Dubai and UAE. Subsidies and discounts on municipality fees and electricity are the best forms of official support from the government. Dubai Government must facilitate developers and investors to subsidize them and give them tax exemptions.

Experts and developers also support this theory and expect subsidies for 8 to 10 years. Once the government will take this daring step, it can encourage more developers to come in action by showing them real guarantees, discounts, exemptions and subsidies. The cuts can be funded by lucrative oil and gas sector that are much supportive and can provide a back up for this industry.

Currently, rare developers are in position to start any new project or complete the construction of halted projects. Everyone is aware of economic crunch in the late 2008 that has turned the upside down of Dubai real estate sector by dropping the prices 60% below than the actual prices, put billion dollars of worth projects on hold and left construction industry groping for cash. All financial and back up resources were ended. Keeping in view the need of the time, stakeholders of Dubai real estate sector expect solid, long-lasting and effective steps from the government that can help them in bringing a good change in real estate and construction sector. » Read more: Subsidies Can Bring Dubai Construction Industry Back on Its Way!