Property developers in Dubai are internalising construction as a strategic response to project delays, which have resulted from a recent surge in launches and a shortage of quality contractors. This approach aims to ensure timely project completion by improving control over all aspects of construction.
Industry insiders say that some developers are engaging contractors as stakeholders and increasingly linking payment to the progress of the project to ensure delivery on time.
“Developers have started responding by internalising construction capabilities to improve control over timelines, costs, and quality. Major developers, including Emaar, Ellington, Azizi, and Arada, have announced plans to partially or fully manage construction in-house. While the impact of this shift will take time to assess, it underscores that contractor capacity remains a structural constraint on near-term supply delivery,” said Prathyusha Gurrapu, head of research at Cushman & Wakefield Core.
She noted that delivery timelines continue to be constrained by contractor capacity, supply chain challenges, and execution risks.
On a full-year basis, Property Monitor data revealed that in 2025, there was an unprecedented expansion in development activity. A total of 648 projects were launched during the year in Dubai, collectively bringing over 167,000 units to the market. These units had a combined value estimated at approximately Dh463 billion. This activity averaged out to a new project launch every 13.5 hours. The 258 developers launching these projects represented a 40 per cent year-on-year increase from 2024, further highlighting the widening participation among developers on the supply side.
According to Haider Tuaima, managing director and head of real estate research at ValuStrat, the supply pipeline is estimated at a record 131,234 units, with apartments accounting for 81 per cent, though actual deliveries may fall short due to persistent construction delays.
Dearth of good contractors
Bhaskara Santosh, partner and development manager of Arthouse Hills Arjan, said that unlike other new developers, they signed the construction contractor even before the sales launch of the new project, Arthouse Hills Arjan. According to him, the contractor, New System Engineering, is a co-investor in the project.
“They have a rich history of over 130 projects delivered in the UAE; we have them on board and that is going to ensure that we complete construction before time. Except for a couple of developers, nobody does a construction-linked payment plan that ensures timely delivery of the project. It is very difficult to delay because the contractor is on board. We’ve already signed the Bill of Quantities (BoQ),” he added.
BoQ is a detailed, itemised document used in construction to list materials, labour and equipment required for the project
Santosh, who worked with Emaar previously, noted that internalising construction by big developers is very useful because they can complete their value chain themselves.
“Today, the biggest problem in the market is the availability of contractors. We also signed a contractor before the launch date because we didn’t want to go out through the tender process and then find contractors, as that would delay the project by one year. So, technically, we are actually one year ahead in construction, because the contractor is on board. Going forward, most of the developers will integrate vertically to get the construction inside their scope,” he told Khaleej Times during the launch of the Arthouse Hills Arjan project.
The Dh550-million Arthouse Hills Arjan development brings the creative and design heritage of Arthouse Hotel New York to Dubai. The project marks the third Arthouse-branded residence in Dubai and is being developed by Adaan Developments in partnership with Cledor, the UAE’s official Arthouse Brand Partner, alongside Tuscany Real Estate Development.
Internally funding projects
Some developers said they are not approaching banks for project financing and are instead funding the project through internal resources.
UAE-based Tasmeer Indigo Properties has launched its second project SquareX One in JVC.
“We are not working with banks for funding; it’s our own money. So if I put my own money, I want to finish as soon as possible. If the project is delayed, the overhead cost goes up, so it’s not economically feasible. Timely delivery is most important in the construction field. We have a timed plan that we work on with the contractor. We check the construction every week, every 15 days, and then on a monthly basis,” said Khyzer Altaf, president of Tasmeer Indigo Properties.
He stressed that it is important to bound contractors for timely completion. In case of a delay, both — developer and contractor — are subject to a penalty. “The contract is always for both to ensure the project is delivered on time for buyers,” he said during the launch of the 205-unit SquareX One project in JVC.
