UAE Construction Costs Rise as Cement Prices Jump 16%

UAE construction costs are coming under renewed pressure in 2026, with cement prices rising 16 per cent, concrete costs increasing 10 per cent and reinforcement steel prices climbing 8 per cent.

The increases are adding to cost pressures for developers and contractors as the UAE construction sector continues to expand across residential, commercial and infrastructure projects.

The latest market assessment also highlights growing pressure on contractors to manage margins, procurement and project delivery amid higher material costs.

Contractors are also shortening guarantee periods as rising costs and market uncertainty reshape commercial terms across the construction sector.

The increase in material prices comes as demand for construction remains strong, supported by ongoing real estate development, infrastructure investment and major projects across the UAE.

Higher input costs could place additional pressure on project budgets and contractor margins, while developers face the challenge of balancing construction expenses with pricing and delivery commitments.