Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE's construction industry continues to expand at a robust pace, with future projects worth more than $767 billion in the pipeline, according to Knight Frank's UAE Construction Landscape - H1 2025 report.
The country's total construction output was valued at $107.2 billion in 2024 and is projected to reach $130.8 billion by 2029, driven by large-scale investments across transport, residential, and mixed-use developments.
Between 2020 and August 2025, contract awards in the UAE amounted to $328.7 billion, with Dubai accounting for 75% of construction-related awards, followed by Abu Dhabi at 23%.
Sector-wise, construction dominates the future pipeline with a 62% share, while transport and power projects account for 12% and 7% respectively.
In terms of subsectors, mixed-use developments lead with 44%, followed by apartments (23%) and houses/villas (15%).
Residential construction costs remain competitive, with standard villas ranging between Dh4,200–5,400 per sqm and high-end villas reaching up to Dh11,000 per sqm.
High-rise apartments cost between Dh 6,100–9,500 per sqm, while commercial buildings average Dh5,500–7,300 per sqm.
Despite a slowdown in H1 2025 – when contract awards dropped to $39.7 billion from $100 billion in 2024 – Knight Frank expects momentum to pick up.
The UAE Central Bank's updated forecast for 2025 predicts a 4.9% GDP growth, driven by increased oil production and a 4.5% growth in non-oil sectors, including construction.
Government-led growth and diversification initiatives under the Abu Dhabi Economic Vision 2030 are driving activity in Abu Dhabi's real estate sector.
Major projects include the development of Zayed City, a new urban district planned to house over 370,000 residents, featuring a fully integrated transport system with metro and regional rail connections.
Another significant project is Abu Dhabi Metro, a planned 131-kilometer metro system aimed at supporting the city's growing population and enhancing public transportation options.
According to DARI, Abu Dhabi's official digital real estate ecosystem, the value of this year's real estate transactions in Abu Dhabi has so far reached Dh61.15 billion.
Around 890 new residential units have been completed in Abu Dhabi so far. Knight Frank estimates that more than 33,000 homes are currently under construction in the emirate, with deliveries planned through 2029.
