You’re probably already imagining some beautiful marble floors with a bunch of palm trees outside when you picture building a house in the UAE. But to actually move abroad, there’s more work to do than you might initially think.
Fortunately, we’re going to break it all down for you – everything from careful planning and legal compliance to construction costs.
You’ll also need accurate cost estimates and a firm grasp of construction regulations before you commit to anything. That includes getting a clear path to land acquisition. Let’s get started!
As you might expect, securing a plot is the first step in your residential development venture. Land prices vary dramatically from one emirate to another.
That’s something that will have an impact on your average price per square foot long before you ever even start the construction process.
And handling all the building permits and legal compliance requirements is something you’re going to have to do regardless of the house you’ve got in mind – from a basic villa to a high-end luxury villa.
The UAE’s construction regulations require developers to submit:
So your first step here is to get in touch with a good real estate consultant to help you through these steps and avoid delays that increase your costs.
Right, so after land acquisition, it’s time to map out estimated costs for your entire project.
Time to shop around for construction materials – sand, steel, concrete blocks, etc. – and weigh those against higher quality materials for finishings.
A mid range quality finishes package might include polished stone floors and semi-custom cabinetry, whereas a high end luxury villa tends to need more handcrafted details that, as you might expect, push your bottom line higher.
Then there are all the additional costs – everything from site surveys and utility connections to contingency allowances. But those are generally things you can revisit later. Your main concerns right now are materials and labour costs.
Once permits arrive, the construction process kicks off with things like ground clearing and foundation work. At this stage, your contractor will order building materials in batches that reflect project complexity and timeline.
Things like pouring foundations and installing roof structures will be the core of the build, but again, you’ve still got to negotiate labour costs in advance. You definitely don’t want to skimp on this – cutting corners is going to mess up your whole plan.
Energy efficiency is probably a bit of a buzzword in the UK, but it’s actually a necessity in the desert sun. So that means installing:
It’s worth mentioning here that you probably are going to pay a bit more upfront when you specify sustainable materials. But that initial outlay often pays dividends in lower utility bills and stronger resale appeal.
And as a side benefit, an eco-focused build can help you sidestep certain fees or even qualify for green financing options with local banks who want to show they’re backing sustainable commercial projects!
Each emirate has its own authority to oversee construction regulations in the UAE. For example, Dubai’s Building Department and Abu Dhabi’s Department of Municipalities and Transport handle the approval processes that cover everything from building permits and environmental approvals to even signage rules.
You have to submit:
Expect back-and-forth on minor tweaks – could be a change in stair dimensions or an upgrade to meet barrier-free access rules – before you actually get a permit to break ground.
Your margins hinge on negotiating both construction materials and labour costs. Now, bulk purchasing cement or steel can net discounts, but only when storage and handling don’t introduce any spoilage or waste.
And yes, skilled labour might command a premium, but cutting back invites mistakes that cost way more to fix. Some investors save by sourcing mid-range quality finishes locally, as that sidesteps a lot of import duties and lengthy shipping times.
But then others find that higher quality materials, though pricier upfront, reduce maintenance calls and buyer pushback once the villa is complete.
Every project carries a few elements you won’t be able to expect. This could be unexpected soil conditions that might require deeper foundations, for instance. Maybe claims for extra work can emerge if subcontractors misinterpret drawings.
So you’ll need to build a buffer into your budget – often around 10% of the total – to cover these additional costs. The more complex your design, the longer the construction process and the greater the risk of change orders. So keep both your contractor and your real estate consultant on tight communication schedules so you don’t get any massive surprises, and your schedule stays on track.
You need accurate cost estimates before you actually start doing anything. We’d recommend doing a feasibility study fairly early on, then combining that with a detailed bill of quantities so you’ve got some groundwork for what your costs might look like. As the job progresses, update your forecasts to reflect actual spends, which means you’ll be able to capture every invoice and tie them back to different phases of the build.
And then when the final cost tally does arrive, you’ll know exactly how your decisions – choosing a basic villa shell vs. adding solar panels – impacted your bottom line.
Needless to say, no one expects you to master every nuance of the UAE’s construction scene. So that’s why you want a real estate consultant to advise on:
Then you’ve got architects, who can translate your vision into compliant drawings. People like quantity surveyors can also refine your estimated costs.
And you’ll also need a project manager to keep the construction process ticking along (unless you fancy the challenge of taking it all on yourself!). Depending on your scale, you may even tap specialist designers for high-end luxury villa finishes or engineers for structural reviews ahead of commercial projects.
If you’re ready to keep every figure and invoice in one place as you move abroad, consider signing up for Upscore’s Finance Passport! It’s a solid way of compiling all your finances together.
And if you don’t decide on going through with building your home, you can always get a lifetime mortgage somewhere in the UAE – Upscore makes that simple by letting you compare multiple lenders and secure the best deal.
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