Construction costs across the UAE are rising as global geopolitical conflicts continue to disrupt supply chains and increase the prices of essential building materials. According to Samana Developers, the company has incurred an additional Dh100 million in construction expenses due to higher material costs. Despite these financial pressures, the developer has reaffirmed that all ongoing projects remain on schedule, highlighting the resilience of Dubai’s real estate sector.

The increase in the cost of steel, cement, aluminum, and other construction materials has placed additional pressure on developers across the region. Global supply chain disruptions, transportation challenges, and increased demand have combined to push up project expenses, forcing many companies to carefully manage budgets without compromising quality or delivery timelines.

Samana Developers stated that its strong in-house construction capabilities have enabled the company to absorb these additional costs while maintaining project quality and delivery schedules. The developer currently has 48 projects under construction and plans to hand over several developments during 2026 and continue additional deliveries in 2027.

Despite higher construction costs, buyer confidence in Dubai’s property market remains strong. The company reported that a significant share of its customers are UAE residents and Emirati buyers, reflecting continued demand for quality residential developments. Market experts believe that Dubai’s growing population, investor-friendly regulations, and long-term economic outlook continue to support property demand even during periods of global uncertainty.

Industry analysts note that while developers may experience tighter profit margins due to rising material prices, many are focusing on operational efficiency, strategic procurement, and improved project management to minimize the impact. Companies with strong financial positions and integrated construction operations are expected to be better equipped to handle ongoing market challenges.

Looking ahead, the UAE real estate sector is expected to remain resilient as infrastructure investment, population growth, and continued foreign investment support long-term demand. Although construction costs may remain elevated in the near term, developers committed to timely delivery and quality construction are likely to maintain buyer confidence and strengthen their position in the competitive property market.