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AMBITION

A rising tide of tall buildings in Dubai

Driven by diversification away from oil and a desire to position Dubai as a global business and tourism hub, high-rise development accelerated at an unprecedented pace from the late 1990s. Sheikh Zayed Road, Dubai Marina, and later Downtown Dubai became vertical corridors where height signalled Dubai's ambition. The completion of Burj Khalifa in 2010 crystallised this era: Dubai was no longer just building tall; it was setting global benchmarks.

Advances in structural engineering, façade systems and construction logistics have enabled slimmer profiles, greater heights, and faster delivery. At the same time, the market has tempered speculative excess, encouraging developers to focus more on quality, branding and long-term value rather than height alone. Luxury residential towers, branded residences and destination hotels now dominate the supertall category, reinforcing Dubai’s position at the top end of the global real-estate market.

While new supertall and even megatall proposals suggest that the city’s appetite for landmark towers remains strong, there are challenges to overcome, underscored by recent geopolitical unrest. Regulatory emphasis and investor demand are shifting towards energy efficiency, reduced carbon footprints, and smarter building operations. In this next phase, Dubai’s skyline will continue to grow upwards, but with a clearer focus on sustainability, integration and global urban leadership rather than height alone.

TRENDS SHAPING THE HIGH-RISE MARKET

After a period of relative in-adventure, Dubai has, in recent times, launched several projects in the supertall (300m+) category and two projects in the megatall (600m+) category.

Construction on the Dubai Creek Tower (with currently unspecified height) was intended to be taller than Burj Khalifa (828m) when first launched has recommenced along with Burj Azizi (725m).

Other notable high-rise buildings under construction include Burj Binghatti Jacob & Co Residences (595m), Tiger Sky Tower (532m), Six Senses Residences (517m) and Corinthia Tower (500m).

In addition to tax-free income for workers, the UAE government has more recently introduced the golden visa and long-stay visas for remote workers.

The population growth resulting from this has led to an increase in demand across all sectors including commercial offices. Corporate tax was introduced in 2022 but is still one of the lowest rates globally, leading to increased investment in existing or developing business districts. Developments such as DIFC Zabeel, several new high-rise developments in Business Bay and along Sheikh Zayed Road are notable examples.

Dubai experienced a period of relatively reduced tall building activity leading up to and during the COVID pandemic. Since then, however, the market has gone from strength to strength, with a significant increase in the number of high-rise developments being launched. This means supply-chain capacity is becoming strained – with costs increasing as a result of established contractors being increasingly able to pick and choose projects likely to deliver higher value.

Given this, developers are seeking alternate strategies to secure contractors for their projects. This includes a move away from the traditional, risk-averse, lump-sum, fixed-price model. Instead, some are adopting alternate procurement strategies that better balance risk, such as package-based procurement, negotiated and, in some instances, re-measurable approaches.

The Dubai market, having historically seen contracts heavily favouring the client, is seeing the balance shift, with more favourable terms such as advance payments, reduced retention provisions and delay damage windows.

DUBAI

Projects shaping the skyline

Beach Resort

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Peninsula Dubai Residences

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Grande by Emaar

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Bulgari Lighthouse

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COST PRESSURE

Construction cost landscape

As with the wider Dubai construction market, the cost of constructing tall buildings has increased markedly over the past few years. This has been driven by several factors including geopolitical volatility, population growth, and initiatives that enable resident expats, and would-be investors reside in the country for extended durations - significantly increasing demand for housing and commercial offices.

In the high-rise market, where the expertise to build high remains in relative short supply, the impact on construction costs has been most profound. The number of local specialist subcontractors for façade, MEP, steelwork, joinery, and lifts, for example, are relatively low – particularly those with enough scale to work on large complex developments such as high-rise towers.

Given these cost challenges, it’s vital for clients to get the basics right from the outset to avoid a project that later has to change direction or pause. This includes understanding the market proposition for the development, undertaking a robust financial feasibility study, and site due diligence.

This must then be supported by a carefully considered design stage – focusing on macro elements that have the most significant impact on the final product and the costs, such as net-to-gross efficiencies, core optimisation and lift strategy, the parking approach, and the structural solution. As the design progresses, more micro adjustments can then be made, such as material changes, without fundamentally undermining the project’s objectives.

COMPARISON

Offices (20-60 storeys)
Residential (20-60 storeys)
2020

AED 4100 – 4800/m²

(AED 380 – 450/ft²)

AED 3800 – 4800/m²

(AED 350 – 450/ft²)

2025

AED 5500 – 6500/m²

(AED 510 – 610/ft²)

AED 5000 – 6450/m²

(AED 470 – 600/ft²)

BENCHMARK

Dubai’s 2025 key cost ranges by sector

Offices (20-60 storeys)*
Residential (20-60 storeys)*
GIA shell and core cost

AED 510-610/ft²

Over 60 floors: AED 550-650/ft²

AED 470-600/ft²

Over 60 floors: AED 560-700/ft²

GIA shell and core cost

AED 5500-6500/m²

Over 60 floors: AED 5900-7000/m²

AED 5000-6450/m²

Over 60 floors: AED 6000-7500/m²

*Costs exclude finishes, demolition, external works and utilities.

FUTURE OUTLOOK

An increasing demand for luxury

Dubai has recently seen significant population growth, particularly of high-net-worth individuals, and this is increasingly leading to demand for luxury and ultra luxury residential units in strategic areas located within or close to Dubai's CBDs.

While unrest in the region might give investors and developers pause in the short-term, in the longer-term we would expect to see major developers continuing to target this end of the market with high rise developments, often associated with a particular high-end brand. Some of the brands linked to high-rise developments in the market already include Jacob & Co, Six Senses, Bugatti, Bulgari, Armani, Cavalli, Frank Mueller and Mercedes-Benz, plus others.

Mixing old and new technologies

While the global advances in high rise construction technology over the past decades have been huge, the adoption of these by the latest high-rise developments in Dubai has tended to be more mixed – in contrast to its reputation as an innovative city, designed for the future. The most common method of constructing Dubai's towers remains reinforced in-situ concrete, driven by cost rather than time constraints.

There are exceptions, with ICD Brookfield in DIFC and Habtoor Tower notably developed using more modern hybrid steel and composite deck structures, and now the situation is starting to change more broadly.

New technologies are being adopted on key project areas including the façade (efficient fabrication, integrated solar etc.), smart system integration, IoT, and modular construction. There is also a consistent push towards more sustainable design and construction methods.

We expect this to continue at pace – with greater integration of AI, more progress on smart systems, and the incorporation of robotics and automation into both the design and construction of landmark buildings. This will be key to ensure Dubai's continued relevance as a global leader in the high-rise market over the longer-term.

CASE STUDIES

Our projects

Al Ghurair Development

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Expo City Dubai, UAE

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EXPERTS

"Despite the recent uncertainty, the foundations of Dubai’s leading economic and cultural reputation are strong, and the latest signature high-rise developments will, in the medium to long term, solidify Dubai as one of the top high-rise markets globally."

David Griffiths Director, Dubai


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