2024 | The Year Ahead

Words by Andrew Bereza, Thursday 15 February 2024

BSBG Senior Partner Andrew Bereza provides his annual thoughts as to what lies ahead for the industry in the next 12 months.

The momentum we are currently witnessing in both the UAE and the Kingdom of Saudi Arabia (KSA) is remarkable. There is a very interesting dynamic at play between the two nations, as Saudi tries not just to emulate the accomplishments of the Emirates over the last 40 years but to transcend them. There is no doubt they have the resource to do so, and they have raised the bar with the visions they’ve published. For us, it’s clear that the UAE, not to be outdone, wants to improve that level once again. There is a friendly competition going on here, which is going to drive the levels of design, quality, and excellence in both markets and the wider region.

2023 saw us embark on new ventures with Ellington Properties and DMCC in Dubai, Mount Anvil in London, and some sensational (but as of now confidential) developments in KSA. As a business, we are in a strong position with a number of fantastic projects on the books, and client relationships that continue to flourish.

Our outlook for 2024, however, remains cautiously optimistic, although we do expect the international construction market to be buoyed this year as interest rates peak, and inflation declines.

The UAE

In our home market of the UAE, the majority of our new projects through 2023 were in the residential sector. 2023 set new records in Dubai, with both the volume and value of sales transactions hitting new highs, and average prices surpassing the previous peak set in September 2014.

Our ongoing contribution towards residential unit numbers in Dubai is significant, and we are delighted with the development and growth of our design hub, +studio, under the guidance of our Group Design Director, Michael Lewis. The unique processes the studio has developed to swiftly deliver well-resolved large-scale residential schemes has been highly beneficial for our clients, such as Ellington Properties, Select Group, and Emaar, and we are very well positioned to continue to add significant value in the residential sector.

This year we will begin to see opportunities away from residential, with new malls, schools and other associated facilities required as a result of the residential boom. That’s going to be quite exciting to see.

We are delighted to have now reached the handover and opening of The Lana, Dorchester Collection, Dubai. This will be the standout hospitality delivery in the region for this year without question. Our teams, particularly on site, have worked tremendously hard on delivering this project, and I believe its impact will leave an indelible mark on the hospitality sector in Dubai.

In terms of our other projects, I expect to see great progress this year on construction of the iconic Six Senses The Palm, which will push towards completion, and also on our Ellington projects. We will be making some new announcements throughout the year, and we have some very exciting new projects in the pipeline in terms of retail, mixed-use, hospitality and residential.

Saudi Arabia

New projects and initiatives in Saudi Arabia are moving forward at speed and on a scale unsurpassed globally. The awards to host Expo 2030 and the FIFA World Cup 2034, which, with Saudi being the only confirmed host to have submitted a bid, looks set to be confirmed this year, have increased momentum in the Kingdom.

There are dozens of projects running simultaneously that would be considered among the largest in the world - we are delighted to be supporting the transformation of Saudi Arabia with our involvement in so many.

Where last year was all about programme and drive to start new projects, we believe this year will be more cost-focused, particularly on the top tier projects. The market is developing at such pace, and is visibly moving into a more mature cycle, particularly when I look at some of our clients such as Misk, DGCL and Qiddiya. They’re now moving into the second and third phase of projects, and we’re really excited about working on these generational developments. The recent announcements at Qiddiya have certainly attracted the world’s attention, and we’ll be making our own announcement on something related to that later in the year.

Last year saw the opening of Misk Schools Campus in Riyadh. The successful delivery of this highly complex and prestigious education project is a milestone for our operations in KSA, and the quality of the finished product is a credit to our +executive and delivery teams.

We will be making more announcements later this year on projects in KSA, all of which I’m sure will create a substantial wave of interest throughout the region.

The United Kingdom

The market outlook for the UK is more positive than at this time last year, driven mainly by the resilience the construction industry showed in the face of numerous challenges in 2023. But a cautious outlook remains the most sensible approach to 2024. A pending general election presents a level of uncertainty, as the two major parties have very different approaches to planning and development. However, we’re witnessing falling inflation, which can only be positive for the construction industry in the UK. In the third and fourth quarter, with interest rates and inflation coming down, I believe we will start to see the market move again in a meaningful way.

We were delighted to reach handover of The Silk District Phase 2 in 2023, marking the first of our completed projects for Mount Anvil. I believe there is a good synergy between our firms, and we have developed a great relationship over the course of that first project. We are delighted with the result of the scheme, and are making solid progress on our second project, One Clapham. We will have news on further projects with Mount Anvil during the year.

In 2024, we are aiming to expand and continue the momentum we have built in each of our key markets since 2021. I believe our reputation continues to grow, based on the expertise and solutions we provide, which are unique to the markets we serve.

Finally, I would like to thank our talented staff for their continued commitment to excellence which enables us to undertake so many wonderful projects for fantastic clients, and I wish a successful year ahead for all our clients, colleagues, and partners for 2024.