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Construction costs in the UAE have risen sharply, now ranging between 250 UAE dirhams and AED 300 ($68.07-81.68) per square foot compared to AED 50 to 80 per square foot a decade ago, Ali Jaber, Chief Executive Officer of G J Properties, told Zawya Projects.
However, construction costs in Ajman remain significantly lower than in Dubai due to lower labour costs, cheaper raw materials, reduced land prices, and lower permit fees, he said.
Additionally, Ajman benefits from its proximity to the northern UAE, where raw materials are sourced, further reducing logistics expenses.
“Cost-effectiveness makes Ajman a highly attractive market for developers and investors,” he stated.
Interview excerpts:
What market factors compelled you to earmark 4 billion UAE dirhams ($1.1 billion) investment in Dubai and Ajman real estate markets?
The decision to invest AED 4 billion in Ajman and Dubai stems from the strong demand for well-positioned real estate offerings that provide both luxury and affordability. The UAE’s real estate market is evolving rapidly, with buyers and investors increasingly seeking properties that deliver high-quality living experiences without an exorbitant price tag.
Dubai continues to attract global investors looking for prime real estate, while Ajman is emerging as a lucrative investment destination due to its competitive pricing, high rental yields, and increasing infrastructure development.
By focusing on the affordable luxury and mid-to-high-end market segments, we aim to cater to both first-time homeowners and seasoned investors looking for strong returns in a dynamic real estate environment.
When did you acquire the land for these projects? Are you now seeing an increase in land prices in Dubai and Ajman?
The land for these projects was originally acquired by my father during 2008–2009. These lands were initially intended for other uses, including agriculture, but were later repurposed for real estate development in response to the market’s growth potential.
Over the years, we have seen a substantial increase in land prices in Dubai and Ajman, driven by rising demand, improved infrastructure, and the UAE’s continued economic expansion. This appreciation in land value highlights the long-term viability and attractiveness of real estate investments in these regions. We are grateful to be early adopters in the industry.
How do you intend to fund these developments?
The funding strategy for our developments is multi-faceted, combining strong broker and channel partnerships, strategic marketing campaigns, and high-impact PR initiatives.
Networking with key stakeholders, leveraging investor interest, and actively promoting our projects in local and international markets is crucial to our financing approach. Our robust outreach strategies help us attract the right investors and buyers, ensuring the seamless execution of our developments.
What will be the sustainable elements in these projects?
Sustainability is an integral part of our vision and the need of the hour. As the first steps, we are integrating green spaces across all our projects.
For instance, Sky Gardens features a plant-covered façade spanning 40 floors, creating a natural cooling effect while improving air quality. Ajman Creek Towers will offer rooftop walking trails and green leisure areas, promoting a healthier and more sustainable urban lifestyle.
We are also incorporating the latest energy-efficient construction technologies and materials to minimise our projects’ environmental footprint, ensuring they align with the UAE’s sustainability goals.
What are the biggest challenges in Dubai and Ajman in the coming years? How are you planning to overcome them?
One of the biggest challenges is meeting the evolving expectations of buyers and investors. People today seek not just homes but lifestyle-oriented living spaces with modern amenities and cutting-edge designs.
The challenge for developers is ensuring pre-acquired inventory aligns with shifting consumer preferences. To address this, we continuously analyse market trends, integrate innovative amenities, and embrace smart technology in our projects. Staying ahead of these trends allows us to deliver developments that meet and exceed market expectations.
Are there plans to enter other emirates and markets in the Middle East?
Currently, our primary focus is on Ajman, which is our home ground. We believe there is immense growth potential. While we have flagship projects in Dubai, such as Biltmore Residences, Ajman remains a key strategic market for us. However, as the market evolves, we will continue to assess opportunities for expansion in the future.
Are you seeing tender prices rise due to the UAE’s booming real estate sector?
Tender prices have increased significantly over the past decade, reflecting the overall growth of the UAE’s real estate sector. Construction costs, which ranged from AED 50 to 80 per square foot a decade ago, have now escalated to approximately AED 250 to 300 per square foot. The rise in material costs, increased labour expenses, and higher demand for premium developments have contributed to this surge.
Despite these rising costs, we remain committed to delivering high-quality projects while optimizing construction efficiency and resource management to bring the most effective value proposition to our customers.
How much is the difference between construction costs in Dubai and Ajman projects?
Construction costs in Ajman are significantly lower than in Dubai due to a variety of factors, including more affordable labour, cheaper raw materials, lower land prices, and reduced permit fees.
Moreover, Ajman benefits from its proximity to the northern UAE, where raw materials are sourced, further reducing logistics expenses. This cost-effectiveness makes Ajman a highly attractive market for developers and investors.
Do you find getting reputed contractors bidding for Ajman projects challenging amid UAE’s growing new launches?
We have successfully partnered with leading contractors such as Modern Building Contracting Company (MBCC) and Gulf Asia to name a few.
Due to the scale and quality of our developments - we have 15 completed projects and more than 25 are under construction - these reputed firms recognise the value of working with us. The logistics and mobility of labour and resources are well-managed, ensuring smooth project execution in Ajman.
Why do you think Ajman is a compelling destination for buyers who missed investing in Dubai’s real estate sector due to higher prices?
Ajman provides an excellent entry-level investment opportunity. For instance, while a studio apartment in Dubai costs around AED 1 million ($272,279.30), investors can purchase three studio units in Ajman for the same amount.
Ajman offers higher rental yields, averaging 8–9 percent, making it an attractive market for investors looking for strong returns and long-term value appreciation. With the constantly growing infrastructure and connectivity to the other northern emirates, Ajman poses as a compelling destination for buyers.
What is your outlook on the real estate market in the UAE, particularly Dubai and Ajman’s off-plan market, for 2025?
The UAE’s real estate market is experiencing strong momentum, with both Dubai and Ajman playing crucial roles in its growth. Demand, pricing trends, and supply dynamics are key drivers shaping the off-plan segment.
Dubai remains a global real estate hub, attracting high-net-worth investors, while Ajman provides a very lucrative and appealing alternative for those seeking affordability and strong rental yields.
With increasing infrastructure development and investment-friendly policies, we anticipate continued growth in both markets in 2025 and the future.
For more Information contact: www.dxrprop.ae
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