Dubai’s property developers are undergoing a major shift in their business practices, increasingly relying on materials sourced locally as global tariffs inflate construction costs and disrupt supply chains.
The surge in material prices is significantly changing how developments across the emirate are planned, financed, and executed. This shift is prompting new strategies that could have lasting effects on the property sector, particularly as developers navigate the broader market impact.
According to Ben Bandari, CEO and founder of BenCo and DevCore, these tariffs are affecting developers differently from earlier trade disruptions. Unlike past events that mainly influenced oil prices or financial markets, the current challenge directly targets global material supplies and costs.
He noted that whereas previous crises often led to stalled projects due to a lack of funding, the current issue revolves around managing increased expenses and complex logistics.
Materials such as steel, aluminium, and glass have been particularly impacted by global tariff policies. As a result, some developers are redesigning their projects to lessen dependency on these more expensive imports.
Bandari explained that developers in Dubai are especially concerned about the rising prices of key construction components like steel, aluminium, glass, mechanical, electrical and plumbing (MEP) systems, and premium tiles.
These cost hikes are directly affecting how projects are planned, with many developers adjusting their approaches to keep them financially viable.
With continued price instability in essential imports, Bandari said developers are adapting by either delaying project launches in hopes of more stable pricing or renegotiating supply terms. Others are reworking designs to incorporate more locally available or affordable materials.
Other voices in the industry support this perspective, pointing to increasing inflationary pressures caused by trade uncertainties.
Farooq Syed, CEO of Springfield Properties in Dubai, noted that ongoing global trade disruptions are pushing up the prices of construction materials, especially those sourced from key markets like China. These rising input costs are inevitably driving up the total cost of development.
