Comparison of construction costs in Syria with countries in the region

With Syria entering a new phase of reconstruction and the opening of real estate investment opportunities, knowing the real cost of construction—and comparing it to leading regional markets—has become an essential step for every developer or investor before making a decision. Does Syria offer lower costs and higher returns? Or is the stability in other markets worth the price difference?

In this article, we compare construction costs in four major markets, the main influencing factors, and where the best opportunity lies for your next project.

What factors determine construction costs in any country?

Construction costs in any country are determined by a set of factors:

1. Price of basic building materials: Directly affected by global and local supply and demand and import costs.
2. Labor costs: Linked to the skill level of workers, their availability, and local wage laws.
3. Land price and location: Construction costs rise if the land is in vital areas or requires complex excavation and preparation work.
4. Government fees and permits: Includes costs for obtaining permits, ownership documents, and taxes imposed by municipalities and official authorities.
5. Exchange rate and currency stability: Affects purchasing power and the cost of importing raw materials and equipment from abroad.
6. Energy and utility costs: Includes fuel, electricity, and water prices needed to operate machinery and construction sites.
7. Infrastructure and transportation: Determined by the availability of road networks and public utilities, which can facilitate or complicate material delivery to the project site.

Construction costs in Syria

The estimated cost of building one square meter in Syria (excluding land price) ranges between 150 to 650 USD, and is often calculated in dollars to ensure price stability. Costs are distributed according to execution stages and quality as follows:

• Shell construction (structure only): Ranges between 150 to 240 USD per square meter (includes excavation, foundations, roof, and main walls).
• Standard finishing: Ranges between 255 to 350 USD per square meter to make the house ready for occupancy.
• Luxury finishing (deluxe): Starts from 400 USD and can exceed 650 USD per square meter (these rates are common in Damascus and its major suburbs).
  

Construction costs in Turkey

The estimated total cost for construction and finishing in Turkey ranges between 400 to 950 USD per square meter (excluding land price). These costs are continuously rising due to local inflation and increasing prices of materials and labor. The costs are approximately distributed by quality and classification as follows: 

• Basic or standard construction: Ranges between 400 to 540 USD per square meter.
• Mid-range construction (second grade): Ranges between 590 to 750 USD per square meter.
• Luxury construction (villas and deluxe): Starts from 850 USD and can exceed 1100 USD per square meter (these rates are common in Istanbul and major coastal cities). 

In local currency (Turkish lira), the net cost for the building structure and basic finishing ranges between 16,000 to 45,000 Turkish lira per square meter, depending on the type of structure (concrete, steel, or luxury villa). 

Construction costs in Saudi Arabia

The estimated total cost for construction and finishing in Saudi Arabia ranges between 1,500 to 3,400 SAR per square meter on average (excluding land price). The cost varies based on the specifications of the approved "Saudi Building Code" and finishing level as follows: 

• Shell construction without materials (labor only): Ranges between 120 to 160 SAR per square meter.
• Shell construction with materials (structural framework): Ranges between 500 to 850 SAR per square meter (includes steel, concrete, bricks, and insulation).
• Standard finishing (turnkey): Ranges between 1,200 to 1,700 SAR per square meter.
• Luxury and deluxe finishing (villas and modern): Starts from 1,800 SAR and can exceed 3,400 SAR per square meter (higher in prime neighborhoods in Riyadh and Jeddah). 

Simple practical example for a villa or floor with a total built-up area of 300 square meters: 

• Economic/standard cost: Ranges between 495,000 to 630,000 SAR.
• Luxury and super deluxe cost: Ranges between 660,000 to 900,000 SAR or more. 

Construction costs in the UAE

The estimated total cost for construction and finishing in the United Arab Emirates ranges between 2,500 to 6,000 AED per square meter on average (excluding land price), which is approximately 450 to 1,100 AED per square foot. 

Costs are rising due to increased prices of basic materials such as steel and concrete, labor costs, and compliance with environmental standards. The approximate costs by quality and classification are as follows: 

• Standard residential construction (economic): Ranges between 2,500 to 3,500 AED per square meter (about 350 to 450 AED per square foot).
• Mid-range construction: Ranges between 4,000 to 5,500 AED per square meter (about 500 to 700 AED per square foot).
• Luxury construction (villas and deluxe): Starts from 6,000 AED and can exceed 11,000 AED per square meter in some upscale communities (about 850 to 1,400+ AED per square foot). 
  

Comparison table of construction costs in Syria and regional countries

How does real estate market research help developers estimate construction costs and investment returns?

Real estate market research helps developers accurately estimate costs and returns through the following points:

Estimating construction costs

• Defining required product specifications: The study reveals the finishing quality clients demand (standard, mid-range, luxury), preventing the developer from overspending or underdelivering on quality.
• Tracking current material and labor prices: Provides accurate data on current building material prices and contractor fees in the project area to avoid surprises during execution.
• Calculating land and fee costs: Gives the developer a realistic price for available land and identifies government fees and permits required to start the project.
  
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Estimating investment returns

• Defining expected sale and rental prices: The study measures prevailing prices per square meter for similar properties, helping set a pricing plan that ensures profit and quick sales.
• Measuring demand volume and sales speed: The study reveals market needs (small apartments, villas, offices), ensuring properties do not stagnate for long after construction.
• Competitor analysis and market risks: Shows the current and future supply in the area, protecting the developer from entering a saturated market that reduces profit margins.