Economy Politics Local 2026-02-24T22:21:01+00:00

Contractor Shortage in Dubai Impacts Real Estate

Dubai's real estate market is struggling with a contractor shortage, causing price hikes and project delays. Major developers are forced to adapt their strategies to manage an unprecedented construction boom.


Contractor Shortage in Dubai Impacts Real Estate

The real estate market in Dubai is experiencing a shortage of contractors as project launches accelerate to unprecedented levels, leading to increased prices and project delays. In response, major developers are adopting comprehensive integration strategies to control supply chains and execution. These include establishing in-house contracting arms, acquiring existing firms, or forming long-term partnerships. This trend is seen as a natural response to an active expansion cycle, especially with expectations to deliver around 210,000 housing units between 2025 and 2026, which brings challenges in labor, materials, and project management. Legally, delay cases fall under regulatory frameworks, including the law on guarantee accounts.