Dubai drives UAE construction growth towards US$175bn by 2032

Dubai, UAE - The UAE’s construction sector will be worth $174.9 billion (AED 642.3 billion) by 2032, Mordor Intelligence forecasts, as money keeps flowing into infrastructure, housing and commercial schemes.

The market research firm puts the size of the market at $127.1 billion in 2026 and expects a compound annual growth rate (CAGR) of 5.42% between 2027 and 2032.

Dubai is the largest single contributor, with 47% of the country’s construction market in 2026, according to the report.

Mordor Intelligence links the growth to spending by both government and private investors, large urban development plans and rising demand for residential, hospitality, logistics and infrastructure projects.

Infrastructure is forecast to be among the quickest-growing parts of the market up to 2032, at a CAGR of 6.05%, while residential and commercial building keeps expanding alongside it.

Residential work made up the biggest share of the market in 2026, at 43.64%. Among the areas the report covers, Sharjah is expected to grow fastest, at a CAGR of 5.8% over 2027-2032.

Developers are turning to digital tools in greater numbers to plan, design and take decisions before work starts on site, as projects grow in size and complexity.

Building Information Modelling (BIM), virtual reality (VR) and augmented reality (AR) let developers, architects and buyers see a scheme and compare design options earlier in the process.

Georges Calas, CEO of Lifesize Plans Dubai, said growth in the sector is also lifting what developers and buyers expect.

Calas said: “The continued expansion of the UAE’s construction market reflects the scale of development taking place across the country and the growing expectations of both developers and buyers.”

“As projects become more sophisticated, we believe that allowing people to experience a property before it is built can provide a valuable additional layer of understanding and reassurance, while helping to identify potential considerations before construction begins,” he added.

Lifesize Plans Dubai started operating in the UAE in 2023 and offers full-scale projections of architectural floor plans, along with immersive visualisation technology.

Its clients, including developers, architects and investors, can walk through layouts, finishes and design configurations ahead of construction, which may bring design changes to light sooner, according to the company.

Wider growth in the UAE’s construction and property markets is expected to open further opportunities for property technology, or PropTech, firms.

Immersive visualisation is being promoted more and more as a means of helping developers, designers and buyers talk to each other, and of supporting better-informed investment and construction decisions.

Major infrastructure projects and new residential, commercial and hospitality developments are expected to keep construction activity going through 2032.

Mordor Intelligence expects the UAE construction market to reach $134.3 billion in 2027, the first year of its forecast period, before rising to the $174.9 billion projected for 2032.