Binghatti Holding Navigates Dubai’s Housing Market with Integrated Strategies
Adapting to Rising Costs
Binghatti, a prominent luxury property developer based in Dubai, is navigating the challenges posed by increasing construction and land acquisition costs through its unique vertically integrated business model. Katralnada Binghatti, the CEO of Binghatti Holding, emphasizes that this approach allows the company to maintain greater control over both operational costs and the quality of its offerings.
With a strategic framework that encompasses six factories dedicated to producing essential materials like steel, joinery, and aluminum, Binghatti minimizes external dependencies. “Our vertically integrated model is key,” she states, underscoring its importance in today’s competitive market landscape.
Impact of Rising Land and Construction Costs
A recent report from cost consultancy firm Currie and Brown anticipates a 2-5% increase in average construction costs across the UAE for 2025. In this context, the upward trend in land prices in prime locations within Dubai, where demand continually outstrips supply, presents additional challenges for property developers.
However, Binghatti asserts that the rise in land costs is largely mitigated by a corresponding increase in property values. “While land prices are climbing, so too are the values of our properties,” Binghatti explains. “We experience ongoing quarterly appreciation, which positions our products at a premium, balancing any negative impact from rising land costs.”
Furthermore, the developer employs a flexible strategy regarding land acquisitions. “Our planning cycles span three years, allowing us to be opportunistic when purchasing land,” says Binghatti, indicating a forward-thinking approach that enhances their market adaptability.
Robust Development Pipeline
Currently, Binghatti is actively developing 23 projects, translating to an impressive 15 million square feet of saleable area. The company has also added significant value to its land bank with a recent acquisition in Nad Al Sheba, which contributed an additional 8.2 million square feet.
This proactive approach to expansion showcases Binghatti’s commitment to satisfying the strong housing demand in the emirate.
Market Trends and Demand
Dismissing any rumors of a slowdown in Dubai’s property market, Binghatti points to notable transaction volumes. According to data from the Dubai Land Department (DLD), the first half of 2025 saw 125,538 real estate transactions—a remarkable 26% increase from the same period in 2024, with the total value of these transactions soaring to AED 431 billion (approximately $117 billion).
“Demand continues to outpace supply, and we expect this trend to persist,” she notes. Reflecting on 2024, she highlights that only 27,000 of the projected 45,000 units were delivered, further illustrating the robust demand in the current market. During this time, Binghatti was responsible for nearly 4,000 delivered units, reinforcing its market presence.
Commitment to Accessible Homeownership
Binghatti holds a significant market share in the Business Bay area as of the first half of 2025. Key policy measures, such as the Golden Visa scheme and the newly launched First-Time Home Buyer Programme by DLD and the Dubai Department of Economy and Tourism (DET), are pivotal in sustaining high demand within the emirate.
Binghatti’s involvement in the DLD-DET initiative demonstrates the firm’s dedication to promoting accessible homeownership in Dubai. “Although we are recognized for our luxury offerings, over three-quarters of our portfolio ranges between AED 500,000 and AED 5 million, aligning perfectly with the programme’s criteria,” Binghatti concludes, reflecting the company’s balance of luxury and accessibility in its property offerings.
By consistently adapting to market conditions and demands, Binghatti continues to solidify its position as a leader in Dubai’s dynamic real estate landscape.
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