Dubai: Here’s the tip for property buyers – costs of even the more affordable homes in Dubai could witness a 10-12% high before year-end. Developers will have no other chance but to increase their asking prices on ongoing projects if the price of steel and other building materials continues to rise.

New luxury villa costs have already witnessed fairly sharp rises since the starting of this year, through a combination of higher demand and from the cost of construction. If more affordable homes also start turning costlier all of a sudden, it could dent demand at a time when the market is witnessing a bounce back.