Project Cost
Project cost encompasses all expenses required to complete property development from land acquisition through construction to final handover, forming the basis for construction loan sizing and developer equity requirements.
| Cost Categories | Components |
| Land acquisition | Plot purchase price |
| Hard costs | Physical construction 60-70% |
| Soft costs | Professional fees, permits 10-15% |
| Financing costs | Interest during construction 8-12% |
| Contingency | Risk buffer 5-10% |
| Detailed Cost Breakdown | Example Villa Development |
| Land | AED 5,000,000 |
| Construction | AED 8,000,000 |
| Architecture and design | AED 400,000 |
| Legal and regulatory | AED 300,000 |
| Marketing | AED 200,000 |
| Financing interest | AED 900,000 |
| Contingency | AED 700,000 |
| Total project cost | AED 15,500,000 |
| Financing Implications | Impact |
| Construction loan 65% LTC | AED 10,075,000 |
| Developer equity required | AED 5,425,000 (35%) |
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