Rising Construction Material Prices Due To Conflict Cost Us Dh100 Million More, Says Samana Chief

(MENAFN- Khaleej Times) The surge in construction material prices triggered by the Middle East military conflict is costing Samana Developers an additional Dh100 million, according to its chief executive.

In an interview with Khaleej Times, Imran Farooq said contractors are now facing significantly higher input costs, forcing developers to aggressively compete to secure limited supplies.

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Despite the pressure, he confirmed that all company projects remain on schedule, with six developments set for delivery this year.

“In 2026, Samana Santorini will be the first handover, followed by six other projects this year. Construction remains on track across all 48 projects, and we have no delays,” Farooq said, adding that more than 1,300 units have already been delivered to date.

Looking ahead, the developer plans to complete an additional 11 projects in 2027.

Farooq made the remarks following the handover ceremony of Samana Santorini in Dubai Studio City, which was attended by Majid Saqr Abdullah Al Marri, CEO of the Real Estate Registration Sector at the Dubai Land Department, along with other senior officials.

“By centralising operations and maintaining end-to-end control over the entire construction process, we effectively bypass standard industry bottlenecks and ensure swift and secure project delivery,” he said.

He noted that while construction material costs have risen sharply, the company has opted to absorb the additional expenses.

“The increase in construction material prices cost us over Dh100 million. We have decided not to delay any project. Materials are still available, but at higher prices. For example, where 100 tonnes of steel used to be readily available, now only around 20 tonnes can be sourced at a time, requiring developers to outbid competitors.”

Like other sectors, the real estate industry has also been affected by rising construction costs amid global supply disruptions.

To support sales momentum, the company has reduced its down payment plan from 20 per cent to 5 per cent, aiming to increase its market share from 3.7 per cent to 9 per cent this year.

He added that around 80 per cent of buyers are UAE-based – both Emiratis and residents – reflecting continued confidence in the country's property market despite regional uncertainty.

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