UAE Developers Go Vertical: Why In-House Construction is Reshaping Real Estate

The UAE construction market is undergoing a massive transformation. Developers who once relied on 25–30 contractor bids now receive just two or three, forcing a strategic pivot toward in-house construction and vertical integration.

In this analysis, we explore:
✅ Why developers like Emaar, Azizi, and Ellington launched in-house contracting arms
✅ How property launches surged 83% while completions fell 23% in 2025
✅ The financial pressures driving this shift — rising material, labor, and insurance costs
✅ Risks of vertical integration and the global $38B construction M&A wave

As Dubai’s population is set to double by 2040 and property prices soar, timeline control and delivery certainty have become critical advantages.

At Zavora Group, we track these industry-defining shifts to help investors and stakeholders stay ahead of evolving real estate opportunities in the UAE.

1. UAE Developers Bring Construction
In-House to Secure Timely Delivery

2. Building partners vanished
from bid lists.
We have been tracking this shift across UAE
construction markets. Where developers once
received 25 to 30 contractor bids, they now get two or
three. The shortage forced a fundamental
recalculation.
Samana Developers planned for its in-house
construction arm to handle 20% of projects. Today,
that number sits at 80–90%.
The math drove the decision.
Property launches jumped 83% in 2025 while project
completions dropped 23%. That gap represents
billions in delayed revenue and frustrated buyers.
Dubai’s population is set to double to 7.8 million by
2040. Property prices already surged 70% over four
years. Demand pressure makes timeline control
critical.
Major players joined the vertical integration wave.
Emaar Properties established Rukn Mirage. Azizi,
Ellington, and others launched in-house contracting
units within two years.
The financial pressure
intensified from multiple
angles.

3. Construction costs are expected to rise 2–5% in 2025
according to Currie and Brown. Material prices for
steel, cement, and aluminum continue climbing due to
supply chain disruptions and geopolitical factors.
Enhanced health insurance rules and stricter
accommodation standards boosted blue-collar
worker costs by an estimated 15% between 2024 and
2025. Labor cost management became a survival skill.
But vertical integration carries
risks.
Construction consultancy founder Gordon Rodger
warns about focus dilution. When developers become
builders, they split attention between land acquisition,
sales, marketing, and now procurement, site logistics,
and subcontractor management.
The strategy concentrates risk instead of distributing it.
If the in-house construction division encounters
problems, the entire development pipeline suffers.
Dubai courts enforce significant delay penalties. One
recent case resulted in a 12.4 million dirham penalty for
an undelivered floating villa. Timeline control through
in-house construction becomes valuable insurance.
This trend extends beyond the UAE. Between August
2024 and July 2025, construction industry M&A deals
totaled more than $38 billion globally.

4. Firms are integrating vertically and horizontally as
supply chain vulnerabilities reshape traditional
business models.
The shift represents adaptation to post-pandemic
realities. Developers who master in-house construction
gain competitive advantage. Those who struggle with
operational complexity may find themselves squeezed
between rising costs and delivery expectations.
The construction industry is restructuring around
control and reliability. Traditional contractor-developer
relationships face fundamental challenges as market
dynamics favor vertical integration strategies.
At Zavora Group, we’re monitoring these structural
shifts closely as they reshape UAE real estate
investment opportunities and development timelines.