Construction costs in the UAE are facing renewed pressure in 2026, with cement prices up 16% since January, concrete rising 10% and reinforcement steel increasing 8%, according to market data from Currie & Brown.
The cost management, project management and advisory firm said strong levels of development activity are being accompanied by tighter contractor capacity, changing procurement conditions and greater caution around fixed pricing.
Contractors are becoming less willing to guarantee prices for long periods, with some tenders carrying additional conditions and fluctuation clauses to account for changing material costs. For certain materials, including steel, quoted prices may now be held for only around 30 days.
The pressures come as development remains active across data centres, aviation and transport, hospitality, industrial and logistics, and residential projects.
Material prices move higher
Currie & Brown's latest UAE Construction Market Overview found that average cement prices have increased by 16% since the start of the year.
Concrete prices have risen by 10%, while reinforcement steel is 8% higher over the same period.
Cost pressure is also affecting mechanical, electrical and plumbing services, electrical infrastructure, façades, steel and aluminium, while diesel prices have remained volatile.
Data centre development is adding demand for specialist electrical and cooling equipment, placing further pressure on parts of the supply chain.
Currie & Brown said the wider construction market continues to attract substantial investment, supported by population growth, economic diversification and long-term government spending.
