Timely Delivery The Key For Developers In Face Of Rising Dubai Construction Costs

With rising construction costs reshaping the economics of Dubai’s real estate market, a project in Business Bay has shown that timely delivery remains the most powerful assetfor developers.

Century Tower, a 23-floor residential building comprising 210 units, has completed handovers two months ahead of schedule, a rarity in today’s property sector.

Developed by AMBS Real Estate Development, with sales led by fäm Properties as master agent, the project is a reminder that finishing projects on or ahead of schedule can make all the difference in an increasingly competitive real estate landscape.

Firas Al Msaddi, CEO of fäm Properties, says the message to developers across Dubai is that, regardless of how well a project sells on launch, the priory is to start construction immediately.

“Developers who have launched projects, whether fully sold or partially sold, must recognise that the market pricing they relied on two or three years ago, or even one year ago, is no longer relevant. Construction costs have increased and are still rising,” said Al Msaddi.

“The longer that construction is delayed, the higher the costthe developerhas to absorb, and the primary driver, inflation, is forecast to continue rising over the coming years. Developers must do their homework, select proven contractors, secure materials early, and build realistic timelines into their financial models from day one.”

ATurner & Townsend report revealed a notable 2025 increase in the price of construction materials, which now amount to around 60% of construction baseline costs in the UAE.

Concrete, MEP, plastics, timber and structural steel prices are forecast to rise again this year, while supply chain issues continue to compound delays. Developers are increasingly buying materials in bulk to reduce lead times and limit cost exposure.

Off-plan demand remains dominant in Dubai real estate. Data from DXBinteract showed that first sales from developers accounted for 12,106 transactions totalling AED52B in January, compared with5,362 resales valued at AED20.5B.

But the pressure is on developers to match demand with delivery. Investors and end users attracted by quality construction and design are more focused than ever on how soon their income-generating assets, or homes, will go from off-plan to ready.

In the case of Century Tower, more than 90% of the apartments were sold on the launch day in June 2024. By then, unlike typical off-plan projects that go to market before construction starts, building work was already well advanced.

“This response to property launches has generally become much more considered in recent years, as investors and end users take more time and care to analyse projects, and do their own market research,” said Al Msaddi.

“Buyers look beyond the marketing renders and location promises. They want to see that the developer has a trusted reputation for quality construction and timely delivery.This is another sign of market maturity. Early completions help alleviate common concerns about off-plan projects, and reinforce buyer confidence in those who deliver on their promises.”

Century Tower was designed to meet a gap in the market for uniquely crafted residences in Business Bay’s Golden Triangle. The building’s design, layout and specifications were the result of in-depth market research and analysis by fäm Properties to match investor and buyer needs.