Building eco-friendly homes in Dubai is a top priority for the country’s fight for sustainability. The world has set ambitious goals in order to stave off climate change. As a result, the UAE has embarked on a journey to create an easy path for developers to follow in order to meet this challenging goal.
The fact is that nearly one-fifth of GHG emissions come from Gulf Cooperation Countries so we’re likely to start seeing new development strategies implemented. Adopting more sustainable strategies will have a huge impact on global warming but eventually, every country must adopt them. The benefit for investors is that there are a lot of new energy-efficient off-plan properties in Dubai.
Fortunately, the threat of climate change has also increased the demand for eco-friendly homes in Dubai. This makes these new off-plan properties appealing to investors from all over the world. So let’s take a closer look at these new strategies and their impact on Dubai’s real estate market.
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Benefits of Sustainable Development Practices
First of all, it’s important to understand the building techniques being incorporated in order to understand their impact. Developers are looking to create a more energy-efficient process. On the construction side, developers are incorporating more lightweight processes in order to limit energy requirements for manufacturing and transportation of building materials.
Homes are also being designed with energy-efficiency in mind. For instance, improving insulation significantly lowers cooling costs for homes in Dubai. Lower energy costs are appealing to home buyers so this single step adds tremendous value to homes.
We’ve also seen an increase in the demand for eco-friendly homes in Dubai. In 2022, we saw a record number of transactions recorded in November. This increase in demand coincides with a number of sustainable homes hitting the market. We’re expecting as much as a 46% increase in growth throughout 2023.
Dubai has set itself up as a business-friendly economy and now by adding sustainability into the picture, they will attract top businesses and workers from around the world. This will cause property value to increase as people flock to Dubai.
Dubai is in the Global Spotlight
The UAE is pushing hard for sustainability by pouring money into the industry. This strategy seems to be working because buyers are showing a growing interest in energy-efficient off-plan properties in Dubai. Of course, the investments are not the driving force for this growth but they did draw enough attention for buyers to look more closely. Investors love the innovative modern designs coming out of Dubai. These breathtaking designs are the result of mandates for SDGs.
The ambitious Net Zero by 2050 is its top attraction right now and has gained a lot of traction. The UAE hopes to become the first Middle East and North African nation to achieve a net-zero emissions milestone. Again, this has put the country in the spotlight and garnered a lot of attention from investors, businesses, and workers from around the world.
What makes Dubai even more alluring is that it has also laid out a plan of its own called the Dubai 2040 Urban Master Plan. This has successfully generated demand for business owners and investors who dream of living in a sustainable city where harmonious progressive co-existence is possible.
The UAE makes this even easier through its reforms such as the Golden Visa, which streamlines the process for foreign investors to transfer their businesses to the UAE. As of right now, Dubai is capitalizing on these reforms due to its already peaking interest.
Dubai Will Ramp Up its Sustainability Efforts Through the Rest of 2023 and Beyond
Dubai is hosting the 28th session of the Conference Parties of the UN Climate Change in November 2023. Since this conference’s goal is to stay in alignment with the 2015 Paris Agreement for lower emissions, Dubai must set an example as its host. As a result, we’re seeing an increased focus on sustainability as Dubai looks to prove that its promise was not unfounded.
To this end, the President of the UAE, H.H. Sheikh Mohamed bin Zayed, is calling 2023 the “Year of Sustainability.” This is backed by a number of initiatives that are designed to help the UAE fulfill its role as a global convener in sustainability. According to Doctor Sultan al-Jaber, the special envoy assigned to specialize in climate change, the UAE plans to invest $50 billion as the country moves toward its goal of sustainability.
Sustainability has Boosted the Value of Eco-Friendly Homes in Dubai
As the UAE heads the talks on sustainability, we’re seeing a significant increase in the value of homes in Dubai. As the spotlight continues to shine on Dubai’s focus on progress and innovative designs, those values will likely rise much higher than they are now. These innovative designs are appealing and appeal to modern-day living. Of course, we’ll also see existing properties updated to meet these new standards. This means that renovation investments will also continue to grow as the demand for sustainable housing increases.
Dubai isn’t just promoting living green; it’s building green in order to accommodate for this increasing demand. Investors would be wise to get into the market now while it’s still trending up. Values are only going to go up. In fact, we expect all of those 2022 records to be shattered in 2023.
The Green REIT
Back in 2021, we saw the path to sustainability open up when Masdar entered into a groundbreaking agreement with the Emirates NBD Asset Management. This agreement was known as the Masdar Green Real Estate Agreement Trust (REIT). They became the first UAE investor to focus solely on sustainable real estate. This agreement paved the way for the massive sustainability shift we’re seeing today.
Dubai Has Ambitions for Full-Fledged Sustainability
Dubai’s ambition to become the worldwide leader in sustainability was showcased in 2020 with the development of “The Sustainable City.” This large development was led by Diamond Developers and is Dubai’s first operational net-zero energy city. It even includes a groundbreaking waste management system to help it achieve full waste diversion. This area already has over 500 townhouses and villas, and it’s looking to grow even further.
Conclusion
In summary, we’re seeing Dubai set the bar for developing sustainable housing. As the world’s first developer of sustainable living, these properties will be massively valuable. This isn’t even taking into account all of the other factors that make Dubai so appealing to investors – location and business policies to name just two. Sustainability is increasing demand even further and it is likely to cement Dubai as the UAE’s destination for the elite.
Right now is the time for investors to get in on the action. The market is still red hot and shows no signs of slowing down. Eco-friendly homes in Dubai continue to pave the way toward the UAE’s sustainability goals, leading to a lot of energy-efficient off-plan properties in Dubai. There’s never been a better time for property investment in Dubai. Contact us today to learn more!
