Dubai real estate leads in sustainability drive

Dubai’s real estate sector is progressively embracing sustainability to align with key mandates envisioned in the Dubai 2040 Urban Masterplan and UAE Net Zero 2050.

With the UAE’s real estate market on track to reach $710 billion by the end of 2024, Dubai is spearheading the sustainability drive that is considered an integral part of future-proofing the country’s real estate landscape.

Madhav Dhar, chief operating officer and founding member of ZāZEN Properties, said prioritising energy-efficient buildings, efficient design and sustainable construction methods will ensure that upcoming developments mitigate negative environmental impacts.

As the UAE’s leadership extended the Year of Sustainability to 2024, residential projects that make the most of natural light, utilize thicker concrete slabs for improved insulation, and incorporate smart technology, energy-efficient appliances and even renewable energy sources like solar panels, will help step up the drive while contributing to the country’s green agenda, Dhar said.

A recent JLL research revealed that buildings with higher levels of green certification can compete with new stock entering the market for longer periods of time. In Dubai, such buildings command 5 per cent to10 per cent higher premiums as compared to green premiums of 11.6 per cent in London, 9.9 per cent across nine major markets in Asia, and 7.1 per cent across eight major markets in the US and Canada.

The shift from traditional notions of sustainability has further seen a rising demand for certified ‘green’ buildings aligned with environmental, social, and health considerations. This is crucial for long-term value preservation and future-proofing real estate assets while less sustainable or ‘brown’ buildings face the risk of devaluation, according to JLL.

With a recent survey conducted by UBS Global Wealth Management showing that 75 per cent of UAE investors think that sustainable developments will become the norm in 2030, this notion is backed by the surge in interest in environmentally conscious developments today. While ROI was once thought to be the measure of success, 93 per cent of investors now think that selecting sustainable options won’t affect performance but rather enhance longevity.