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Dubai-based luxury property developer Binghatti is relying on its vertically integrated business model to navigate rising construction and land acquisition costs amid strong housing demand in the emirate, its chief executive said.
Binghatti Holding CEO Katralnada Binghatti said the company operates six factories producing steel, joinery and aluminium, giving it greater control over costs and quality.
“Our vertically integrated model is key,” she emphasised.
Cost consultancy Currie and Brown had said in a report issued in February 2025 that it expects average construction costs in the UAE to rise by 2-5 percent this year.
Rising land prices offset by sales growth
While land prices in Dubai are seeing an upward trend, especially in prime locations where demand exceeds supply, Binghatti noted that this increase is offset by corresponding growth in sales prices.
“As for land, while prices are rising, so are property values,” she said. “We see consistent quarterly appreciation and a premium on Binghatti products, so it balances out.”
Additionally, the developer has adopted a flexible approach to land acquisition.
“We plan in three-year cycles, and we’re opportunistic with land purchases,” Binghatti explained.
The company currently has 23 projects under development with 15 million square feet (sq. ft.) of saleable area, plus nine more in the pipeline. Its recent Nad Al Sheba acquisition has added another 8.2 million sq. ft. to its land bank.
No signs of a market slowdown
The CEO dismissed suggestions of cooling in Dubai’s property market, pointing to record-high transaction volumes in the first half of 2025.
The number of real estate transactions reached 125,538 in the first half, marking a 26 percent increase from the same period in 2024, according to data issued by the Dubai Land Department (DLD). The value of transactions rose by 25 percent, reaching AED 431 billion ($117 billion) up from AED 345 billion ($94 billion) last year.
“Demand continues to outpace supply, and we expect this trend to persist,” she said, observing that in 2024, only 27,000 of the projected 45,000 units were delivered, with Binghatti handing over nearly 4,000.
She added that the developer held the largest market share in the Business Bay area during the first half of 2025.
Policy measures, including the Golden Visa scheme and the newly launched First-Time Home Buyer Programme by DLD and Dubai Department of Economy and Tourism (DET), are helping sustain demand in the emirate, according to Binghatti.
She said the company's participation in the DLD-DET joint initiative reflects its commitment to supporting accessible homeownership in Dubai.
"While Binghatti is known for luxury, over three-quarters of our portfolio falls within the AED 500,000 to AED 5 million range - perfectly aligned with the programme’s criteria," she concluded.
Read more: Binghatti Capital’s private credit fund to boost sub-contractors, increase ROI
(Reporting by Brinda Darasha; Editing by Anoop Menon)
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