For developers, investors, and contractors, every square meter matters.  Whether you’re building a luxury residential development in Riyadh, opening a five-star hotel in Dubai, or planning a large-scale infrastructure project, knowing the latest construction costs in Saudi Arabia and the UAE is key to securing profitability.

The H2 2024 KSA & UAE Construction Cost Benchmark Reports from Compass deliver sector-specific cost insights, helping you navigate market fluctuations, optimize budgets, and make data-backed decisions.

Key Cost Trends Shaping the Middle East’s Construction Market

Saudi Arabia’s construction sector continues to evolve, driven by PIF-backed megaprojects, sustainability mandates, and AI-driven digital construction.  The country’s push toward local production is influencing cost structures, while Vision 2030 workforce development initiatives are shaping pricing strategies.  With premium apartments ranging from SAR 6,500 to SAR 9,500 per m², understanding construction cost per square meter in Saudi Arabia is essential for accurate project budgeting.

In the UAE, the hospitality and fit-out sectors remain strong, while real estate continues to benefit from high net migration and sustained investment appetite.  However, with a large volume of apartments expected to enter the market in 2025, residential valuations could shift.  At the same time, selective tendering among contractors is driving higher-quality project delivery and more competitive pricing.  A 5-star hotel in Dubai now costs up to AED 17,200 per m², reflecting the increasing demand for premium construction.

Sector-Specific Cost Insights

Luxury residential developments remain a high-value segment.  In the UAE, upper-market villas cost between AED 9,100 – 11,250 per m², while premium Saudi villas range from SAR 5,200 – 8,000 per m².  High-end apartment construction in Dubai exceeds AED 8,850 per m², signaling rising material and labor costs.

For investors eyeing the hospitality sector, cost benchmarks continue to rise.  A 5-star hotel in Saudi Arabia requires an investment of SAR 13,200 – 17,000 per m², while in the UAE, a luxury resort hotel can cost up to AED 17,200 per m².  This reflects the increased demand for world-class hospitality offerings across the region.

The food & beverage and retail sectors remain robust, but fit-out costs are climbing.  In Saudi Arabia, high-end restaurant fit-outs range from SAR 13,000 – 19,000 per m², while in Dubai, premium F&B fit-outs cost between AED 10,500 – 15,500 per m².  Selective contractor pricing and evolving design expectations are key factors influencing these shifts.

For commercial developments, the cost of high-end office fit-outs in Saudi Arabia ranges from SAR 7,000 – 10,000 per m², aligning with the growing demand for smart, efficient workspaces.  In the UAE, premium office fit-outs are slightly higher, costing between AED 7,250 – 9,700 per m², as businesses continue to invest in flexible, high-quality corporate environments.

Why Download the Reports?

Accessing real-time construction cost data is crucial for ensuring project feasibility, optimizing procurement strategies, and making informed investment decisions.  The H2 2024 KSA & UAE Construction Cost Benchmark Reports provide accurate, sector-specific insights based on Compass’ expertise in cost and commercial management.

Whether you’re pricing a hospitality project, a mixed-use development, a high-end residential community, or an F&B fit-out, these reports offer the intelligence you need to stay ahead of market shifts and drive profitability.

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For expert guidance on construction costs in Saudi Arabia and the UAE, contact insights@compass-pc.com.