How the UAE’s construction sector is getting back to business with an upward trend in the property market.

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The construction sector in the United Arab Emirates (UAE) is experiencing a remarkable resurgence, fueled by a wave of property launches. This resurgence signals a return to boom times for the construction sector, as significant investments flood into the country’s real estate market. We look at what is driving this boom and how it is affecting the UAE’s construction industry and the overall economy.


The UAE’s construction industry is gearing up to build all of the new homes that will enter the real estate market in the next three to five years, as developers shift gears to accelerate the launch of off-plan projects.

It’s obvious that the off-plan boom in Dubai and Abu Dhabi fits right into the dynamic of the construction sector. “Despite the completion of some major projects, the UAE construction sector was in a difficult phase,” said the CEO of one of the larger contracting firms.


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Not just focused on the residential market

New hospital and school construction, as well as ongoing and upcoming infrastructure projects, will all aid in the construction sector’s continued growth. (On new office developments, extra time might be needed if demand exceeds supply.) The UAE’s construction industry is now experiencing a robust revival following a period of stabilization. This revival is attributed to a spike in real estate launches across the nation, which has rekindled growth and development in the sector.


Construction industry expenditures remain stable

Another benefit for the construction industry has been the stability of material and shipping costs following all the increases they underwent in 2021 and early 2022.

Developers, contractors, and investors who depend on stable pricing in the construction sector are relieved by this stability. Construction companies can better manage their budgets when costs are stable. They are able to precisely predict project costs, reducing the possibility of cost overruns and guaranteeing financial stability throughout the construction phase.


Investors’ Interest & Project Viability

Construction projects are more financially viable due to the stability of material and shipping costs. Developers can confidently evaluate the viability of their ideas and make wise financial decisions. This stability promotes the beginning of new projects and increases confidence in the building industry. Launches of real estate projects have resulted in actual construction contracts.


By highlighting the trust and confidence investors have in these projects, it shows the positive momentum and growing investment in the construction sector, making the UAE’s construction sector appeal more to both domestic and foreign investors. Investors prefer secure markets with predictable costs, and the construction sector’s tenacity in preserving stable material and shipping costs increases its allure.


Priority one: sustainability

Following the success of COP27 in Egypt last year and with the next edition of the conference to be held in the United Arab Emirates in the final quarter of 2023, sustainability has become a major theme. For governments and businesses in the region. UAE and Saudi Arabia are the countries most aware of sustainability challenges, with 91% of respondents in the region saying that Building Decarbonization projects will be a major challenge over the next three years.


However, businesses in the United Arab Emirates and Saudi Arabia not only acknowledged the challenge but stepped up to address it. Currently, 43% have complied with ISO 14001 – Environmental management system, and more than 45% plan to achieve compliance within the next 12 months.


According to this, the construction industry understands the critical role data plays in improving decision-making, visibility, safety, and customer satisfaction, and promoting sustainability. Continuous investment in digital transformation not only improves the efficiency and financial performance of the industry today but also gives the industry the ability to adapt to unforeseen challenges and meet expectations in the future.


The UAE’s construction sector is experiencing a truly impressive boom, fueled by property launches that are driving promising economic growth. The increase in construction activity, combined with increased demand for real estate and lucrative investment opportunities, is propelling the country’s economy forward. As the UAE continues to transform its urban landscapes and establish itself as a global real estate destination, the construction sector is poised to play a critical role in shaping the nation’s future.


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