Facing unprecedented construction delays amid a historic development boom, Dubai’s property developers are fundamentally restructuring their operational models by internalizing construction management. This strategic pivot comes as the emirate grapples with a record supply pipeline of approximately 131,234 units, predominantly apartments comprising 81% of planned developments, though industry analysts caution that actual deliveries may significantly underperform due to persistent construction bottlenecks.
The movement toward vertical integration represents a direct response to critical market constraints including severe contractor shortages, supply chain disruptions, and execution risks that have plagued Dubai’s real estate sector. Major development corporations including Emaar, Ellington, Azizi, and Arada have announced comprehensive plans to partially or fully manage construction operations internally, seeking greater control over project timelines, cost management, and quality assurance.
According to Prathyusha Gurrapu, Head of Research at Cushman & Wakefield Core, “This structural shift demonstrates developers’ recognition that contractor capacity remains the primary constraint on near-term supply delivery. While the full impact will require time to assess, internalizing construction capabilities fundamentally alters the development landscape.”
The scale of Dubai’s development activity reached unprecedented levels in 2025, with Property Monitor data revealing 648 project launches delivering over 167,000 units valued at approximately Dh463 billion. This remarkable pace equated to a new project launch every 13.5 hours, with developer participation increasing by 40% year-on-year.
Innovative partnership models are emerging as developers seek alternatives to traditional contracting. Bhaskara Santosh, Partner and Development Manager at Arthouse Hills Arjan, revealed their strategy of engaging contractors as stakeholders before project launch, noting “By signing New System Engineering as both contractor and co-investor, we’ve effectively gained a one-year advantage in construction timelines.”
Simultaneously, some developers are bypassing traditional bank financing entirely. Tasmeer Indigo Properties President Khyzer Altaf confirmed their second project SquareX One in JVC is being funded through internal resources, stating “When utilizing our own capital, timely completion becomes economically imperative. We implement rigorous weekly and monthly monitoring protocols with contractors, with penalty clauses binding both parties to delivery commitments.”