Shell-and-core delivery is common in Dubai commercial, occasional in high-end residential, and almost always more expensive to finish than the buyer budgets for.
The appeal is full design control — you specify every finish, every tile, every fixture to taste. The reality on current Dubai contractor rates: a residential shell-and-core fit-out for a 2,000 sqft apartment to a mid-luxury spec runs AED 550-900 per sqft depending on kitchen and bathroom quality, taking 3-6 months with all approvals. That’s AED 1.1M-1.8M on top of the purchase price.
Commercial shell-and-core is standard practice and budgeted into tenant CAPEX. Residential shell-and-core should only be the plan if you genuinely want full custom control and have both the cash and the patience for the fit-out process.
A client last year bought a shell-and-core Palm Jumeirah unit assuming AED 400/sqft fit-out. Actual came in at AED 740. His budget overran by AED 750k.
Model the fit-out. Then add 30%.
Related: Handover Condition, Furnished, Semi-Furnished, Handover Date.
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