Rising construction costs are quietly reshaping Dubai’s real estate market. Steel, concrete, MEP systems and even timber are more expensive than they were a year ago. Supply chains remain unpredictable. Inflation continues to pressure project budgets. In this climate, timing is no longer just about reputation. It is about survival.
Against this backdrop, a residential project in Business Bay has done something increasingly rare. Century Tower, a 23-floor building with 210 apartments, completed handovers two months ahead of schedule. In a market where delays are common and material prices keep climbing, early delivery is more than a milestone. It is a strategic advantage.
Developed by AMBS Real Estate Development, with sales led by fäm Properties as master agent, the project offers a practical lesson for developers navigating today’s cost environment. Sell well, yes. Market aggressively, certainly. But start building immediately.
Firas Al Msaddi, CEO of fäm Properties, is direct about the stakes. Market pricing assumptions made two or three years ago are no longer reliable. Even projections from last year may already be outdated. Construction costs have increased, and forecasts suggest further rises ahead.
The logic is simple. The longer a project waits to break ground, the more exposure a developer has to rising material prices and inflation. Every month of delay compounds risk. Developers who hesitate may find their original margins eroded before foundations are even poured.
A recent report by Turner & Townsend highlighted that construction materials now account for roughly 60 percent of baseline building costs in the UAE. Concrete, structural steel, MEP components and plastics all saw notable increases in 2025, with further upward pressure expected this year. For developers operating on fixed off-plan sale prices, those increases cannot always be passed on to buyers.
This has led to a shift in strategy. Some developers are purchasing materials in bulk to lock in prices and reduce exposure to supply disruptions. Others are tightening contractor selection processes, prioritising firms with proven delivery records over lower bids. Realistic timelines are being embedded into financial models from the start, rather than adjusted midway through construction.
The urgency is amplified by Dubai’s continued appetite for off-plan property. Data from DXBinteract shows that in January alone, first sales from developers accounted for more than 12,000 transactions worth AED 52 billion. By comparison, resale transactions were significantly lower in both volume and value. Off-plan remains the engine of the market.
But buyers are not the same as they were during earlier cycles. Investors and end users are more cautious. They scrutinise track records. They examine timelines. They look beyond marketing renders and location promises. In a maturing market, credibility matters as much as concept.
Century Tower reflects this shift. When the project launched in June 2024, more than 90 percent of units were sold on the first day. What distinguished it from many other launches was that construction was already well underway. Buyers were not purchasing a blueprint. They were investing in visible progress.
This approach reduces a common anxiety associated with off-plan purchases: uncertainty. Early completions do more than meet deadlines. They signal discipline. They reassure investors that projected rental yields or occupancy timelines will not drift indefinitely. For end users, they mean homes are delivered when promised, not years later.
There is also a broader economic implication. As costs rise, developers who fail to move quickly may face shrinking margins or financing strain. In extreme cases, prolonged delays can jeopardise project viability. Timely execution therefore protects not only buyer confidence but also corporate balance sheets.
Century Tower was positioned to fill a gap in the market for carefully designed residences within Business Bay’s so-called Golden Triangle. Its layout and specifications were shaped by detailed market research conducted by fäm Properties, aligning the product with investor demand from the outset. That alignment, combined with early construction progress, helped convert launch-day interest into firm sales.
The message for the wider market is clear. In a cost-inflation environment, time itself becomes a commodity. Developers who treat construction schedules as flexible marketing tools may find the numbers working against them. Those who treat them as financial safeguards stand to gain.
Dubai’s real estate sector continues to grow, and demand remains strong. Yet beneath the optimism lies a more disciplined reality. Margins are tighter. Buyers are sharper. Costs are less forgiving.
