UAE Developers Bring Construction In-House to Secure Timely Delivery

 

Building partners vanished from bid lists.

We have been tracking this shift across UAE construction markets. Where developers once received 25 to 30 contractor bids, they now get two or three. The shortage forced a fundamental recalculation.

Samana Developers planned for its in-house construction arm to handle 20% of projects. Today, that number sits at 80–90%.

The math drove the decision.

Property launches jumped 83% in 2025 while project completions dropped 23%. That gap represents billions in delayed revenue and frustrated buyers.

Dubai’s population is set to double to 7.8 million by 2040. Property prices already surged 70% over four years. Demand pressure makes timeline control critical.

Major players joined the vertical integration wave. Emaar Properties established Rukn Mirage. Azizi, Ellington, and others launched in-house contracting units within two years.

The financial pressure intensified from multiple angles.

Construction costs are expected to rise 2–5% in 2025 according to Currie and Brown. Material prices for steel, cement, and aluminum continue climbing due to supply chain disruptions and geopolitical factors.

Enhanced health insurance rules and stricter accommodation standards boosted blue-collar worker costs by an estimated 15% between 2024 and 2025. Labor cost management became a survival skill.

But vertical integration carries risks.

Construction consultancy founder Gordon Rodger warns about focus dilution. When developers become builders, they split attention between land acquisition, sales, marketing, and now procurement, site logistics, and subcontractor management.

The strategy concentrates risk instead of distributing it. If the in-house construction division encounters problems, the entire development pipeline suffers.

Dubai courts enforce significant delay penalties. One recent case resulted in a 12.4 million dirham penalty for an undelivered floating villa. Timeline control through in-house construction becomes valuable insurance.

This trend extends beyond the UAE. Between August 2024 and July 2025, construction industry M&A deals totaled more than $38 billion globally. Firms are integrating vertically and horizontally as supply chain vulnerabilities reshape traditional business models.

The shift represents adaptation to post-pandemic realities. Developers who master in-house construction gain competitive advantage. Those who struggle with operational complexity may find themselves squeezed between rising costs and delivery expectations.

The construction industry is restructuring around control and reliability. Traditional contractor-developer relationships face fundamental challenges as market dynamics favor vertical integration strategies.

At Zavora Group, we’re monitoring these structural shifts closely as they reshape UAE real estate investment opportunities and development timelines.

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