In the Investor Spotlight: Rising Construction Costs in the UAE in 2025

According to the latest report by international consultancy firm Currie & Brown, construction costs in the United Arab Emirates are expected to increase by 2–5% in 2025, while Saudi Arabia may see a rise of 5–7%. The price surge is driven by global challenges, including economic and geopolitical instability, supply chain disruptions, labor shortages, and rising costs of specialized materials.

Amid rapid growth in sectors like digital infrastructure and green energy, the construction industry is adapting to new conditions. Major developers are already revising their planning approaches by implementing data analytics and agile project management strategies.

The report highlights increasing competition for limited resources, particularly in the execution of technological and infrastructure projects. With a shortage of skilled labor, workforce costs continue to climb.

Despite market challenges, the UAE remains an attractive investment destination—thanks to sustained demand, large-scale government initiatives, and high process transparency. However, investors must factor in rising construction costs, whether purchasing off-plan properties or developing their own projects.

Experts at Kalinka Ecosystem are ready to conduct a detailed project analysis, assess risks, and provide reliable investment solutions tailored to the UAE’s evolving market conditions.