The UAE construction sector is experiencing a warming market as confidence rises across real estate, infrastructure, and tourism.
According to Turner & Townsend’s UAE Market Intelligence 2025 survey, 71 per cent of industry respondents reported a positive market trend, a 2 per cent increase on last year.
The survey, which collected insights from contractors, consultants, and developers across the UAE, highlights sustained momentum in residential, mixed-use, leisure, hospitality, and major public infrastructure projects.
Respondents identified real estate, tourism, and infrastructure as the top-performing sectors despite rising costs and talent shortages.
Sustainability is becoming a central focus. Forty-six per cent of respondents reported a commitment to net zero on current projects, while 56 per cent noted an increase in sustainable measures overall.
Turner & Townsend said this trend is expected to accelerate as government strategies, legislation and investments, including the UAE Energy Strategy 2050, drive growth in the utilities and energy sectors.
Construction cost sentiment remained cautious, with respondents seeing increases of 3 to 5 per cent in costs across mixed-use and residential projects over the past year.
However, profit margins on mid- to large-scale projects remain stable, with contractors leveraging specialist expertise to secure favourable terms.
Adam Ralph, UAE Country Manager at Turner & Townsend said: “Our survey shows a market that’s not only growing but evolving. Clients and contractors alike are responding to the UAE’s ambitious development agenda with innovation, resilience and a clear appetite for sustainable progress. With strong activity across residential, infrastructure and hospitality, and increasing interest in digital and sustainable delivery, the region continues to offer significant opportunities for organisations looking to contribute to its long-term transformation.”
The report also highlighted an emphasis on modern construction methods, digital tools and talent upskilling as essential for navigating complex project delivery and accelerated construction timelines.
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