The UAE real estate market is set to scale new heights, with projections indicating a staggering valuation of $710 billion by the year’s end. In alignment with the ambitious goals outlined in the UAE Net Zero 2050 and Dubai 2040 Urban Masterplan, Dubai’s real estate landscape is witnessing a gradual shift towards sustainability.
Ranked third globally with over 400 projects certified by LEED (Leadership in Energy and Environmental Design), Dubai is spearheading the sustainability drive, recognised as a critical step towards future-proofing the nation’s real estate market.
Madhav Dhar, Chief Operating Officer and founding member of ZāZEN Properties highlighted upcoming developments’ focus on minimising environmental impact through energy-efficient buildings, sustainable design, and innovative construction methods.
UAE Real Estate Embracing Sustainability
Residential projects are embracing features such as maximising natural light, incorporating thicker concrete slabs for improved insulation, integrating smart technology, energy-efficient appliances, and even harnessing renewable energy sources like solar panels. These initiatives underscore Dubai’s commitment to advancing the nation’s green agenda.
A recent study by JLL revealed that buildings with higher levels of green certification command premium prices, with premiums ranging from five to ten percent higher in Dubai compared to key global markets such as London, major Asian cities, and prominent US and Canadian markets.
JLL further emphasised the growing demand for certified “green” buildings that consider social, economic, and health factors, noting the risk of devaluation faced by less sustainable or “brown” buildings. This underscores the importance of prioritising sustainability for long-term value preservation and future-proofing real estate assets.
With the UAE aiming for a 40% improvement in energy efficiency and a 56% reduction in emissions by 2030, Alida Saleh, Head of Sustainability – MEA at JLL, highlighted the country’s transition towards the “Climate Aware” phase. Saleh underscored the potential for growth as the UAE drives climate mitigation and adaptation strategies towards achieving Net Zero by 2050.
Echoing these sentiments, ZāZEN Properties emphasised the pivotal role of sustainability in shaping the UAE’s real estate sector.
Emphasising green practices, the sector stands poised to contribute significantly to the country’s carbon emission reduction targets and potentially increase the nation’s GDP by approximately $1 trillion before 2050.
Moreover, a recent UBS Global Wealth Management survey revealed that 75% of investors in the UAE anticipate sustainable development to become the norm by 2030. This aligns with the surge in interest in environmentally conscious developments, with 93% of investors acknowledging that sustainable options offer longevity and value beyond traditional return on investment metrics.
Madhav Dhar of ZāZEN Properties reiterated the transformative impact of sustainable developments, foreseeing a paradigm shift in investment trends that will not only cater to diverse consumer preferences but also uphold regional and global green objectives while bolstering the UAE’s economy.
