Timely delivery key for developers amid rising Dubai construction costs
As rising construction costs continue to reshape the economics of Dubai’s real estate market, a residential project in Business Bay has demonstrated that on-time — or early — delivery remains one of the most valuable advantages for developers.
Century Tower, a 23-floor residential building comprising 210 units, has completed handovers two months ahead of schedule, at a time when industry analysts warn of increasing delay risks linked to material price inflation and supply chain constraints.
The project was developed by AMBS Real Estate Development, with sales managed by fäm Properties as master agent.
Rising costs intensify pressure on developers
Industry data indicates mounting cost pressures across the UAE construction sector. A recent report by Turner & Townsend highlighted a significant increase in material prices during 2025, with materials accounting for approximately 60% of baseline construction costs in the UAE.
Prices for concrete, MEP components, plastics, timber, and structural steel are forecast to rise further this year, while supply chain bottlenecks continue to challenge delivery timelines. In response, some developers are increasingly purchasing materials in bulk to reduce exposure to volatility and minimise delays.
Firas Al Msaddi, CEO of fäm Properties, said developers must prioritise immediate construction mobilisation, regardless of how strongly a project performs at launch.
“Market pricing from two or three years ago — or even one year ago — is no longer relevant,” he said. “The longer construction is delayed, the higher the cost developers must absorb, especially with inflation projected to remain elevated.”
He added that developers should focus on selecting proven contractors, securing materials early, and incorporating realistic timelines into financial planning from the outset.
Off-plan demand remains strong, but delivery matters
Despite cost pressures, off-plan demand continues to dominate Dubai’s property market. Data from DXBinteract shows that first sales from developers accounted for 12,106 transactions worth AED 52 billion in January, compared with 5,362 resale transactions totalling AED 20.5 billion.
However, investors and end users are increasingly prioritising delivery certainty alongside pricing and design. Buyers are scrutinising developer track records more closely, focusing on construction progress, quality standards, and handover timelines.
Century Tower provides a case study in early delivery. More than 90% of units were sold on launch day in June 2024, at a time when construction was already well advanced — a contrast to many off-plan projects that are launched prior to breaking ground.
Al Msaddi noted that buyer behaviour has matured significantly in recent years.
“Buyers look beyond marketing renders and location promises. They want proof of quality construction and timely delivery. Early completion reinforces confidence and strengthens a developer’s reputation,” he said.
Strategic positioning in Business Bay
Century Tower was designed to address demand for uniquely crafted residences within Business Bay’s Golden Triangle. The building’s layout and specifications were informed by detailed market research aimed at aligning with investor expectations and end-user requirements.
As Dubai’s real estate sector navigates cost inflation and supply constraints, analysts suggest that the ability to deliver projects on schedule — or ahead of it — may increasingly define competitive advantage in the emirate’s evolving property landscape.
