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 sqft today, industry sources said.
Developers say they are renegotiating their deals with contractors to levels even as low as Dh270 per sqft. Imad Al Jamal, of the UAE Contractors Association, told Emirates Business the numbers have fallen sharply.
"The cost has gone down to between Dh400 and Dh600 per sqft 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 sqft for high-end projects. We are only talking about core and shell and not looking at the finishes," Al Jamal said.
Matt Cronje, Chief Development Officer at Schon Properties, said he is in the midst of further negotiating that price. "We are looking at construction prices ranging between Dh270 and Dh300 per sqft in general. It is now a developer's market," he said.