Construction costs in Dubai have fallen by 70.83 per cent from their peak of Dh1,200 per square foot in August 2008 to about Dh350 per sq ft today, industry sources told Emirates Business.
Developers are currently renegotiating deals with contractors to levels even as low as Dh270 per sqft. The cost has gone down to between Dh400 and Dh600 per sq ft with some areas going as low as Dh350. This is against a peak in August 2008, when it went as high as Dh1,200 per sq ft for high-end projects.
As the global financial crisis began to hit UAE late in 2008, major government-linked developers behind some of Dubai’s high profile projects have put work on hold and cut jobs. Around $75 billion worth of projects in the Emirates have been suspended or cancelled altogether according to an HSBC report issued in January.
