In real estate development, inflation is not an economic headline – it’s a daily operational reality.
Tender returns across Dubai in 2025 show a clear shift in contractor behaviour; price validity periods are shrinking, revalidation conditions are tightening, and compressed delivery requests are being priced as higher risk.
In one recent tender package, the difference between round one and round two pricing was significant, driven not by a single material but by programme assumptions. If scope is not frozen and sequencing is not locked early, cost exposure escalates rapidly.
This is consistent with industry data. Currie & Brown’s UAE Market Overview (September 2025) projects tender price inflation at 2–5% for 2025, with quarterly gains of 1–2% – a reflection of supply pressures and surging demand for skilled labour.
For real estate developers, the operational takeaway is that execution risk translates directly into cost risk. Late design clarifications push packages into repricing, especially where long lead procurement is involved. Developers who fail to control scope at tender stage are underwriting volatility.