UAE Developers Take Control with In-House Construction Boom
Major UAE developers, amidst a property surge, are shifting to in-house contracting to enhance control over construction timelines, costs, and quality. Emaar, Samana, and others have launched internal firms, potentially boosting profits but posing risks, as competition among external contractors stiffens. The move follows a real estate boom and aims for self-reliance.
In the rapidly evolving landscape of UAE real estate, prominent developers are increasingly establishing in-house contracting divisions to capitalize on a property boom. This strategic move is intended to give them greater control over building timelines, costs, and quality while maintaining a larger share of profits.
Emaar Properties, the company behind the Burj Khalifa, has taken significant steps by creating Rukn Mirage under its Mirage subsidiary. They join industry peers such as Samana Developers, Ellington, and Azizi, who have launched internal contracting units recently.
The trend has been driven by a surge in Dubai's real estate market, where property prices have soared, and the population is expected to double by 2040. However, the move could lead to challenges as developers may face risks of idle capacity during downturns and stretched resources handling diversified roles.
(With inputs from agencies.)
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