Why is Sustainability Important in Real Estate?
Sustainability is a crucial aspect of the real estate industry, particularly in the context of Dubai. It encompasses practices that aim to create environmentally friendly and economically viable buildings and communities. There are several reasons why sustainability is important in real estate:
- Environmental Benefits: Sustainable practices help improve air quality and reduce pollution. By using materials that are non-toxic and low-emitting, such as green roofs and increasing vegetation, real estate developers can contribute to a healthier environment.
- Economic Benefits: Embracing sustainability can lead to economic advantages for property owners. As more people become aware of the importance of sustainability, there is a growing preference for sustainable properties. This increased demand can result in higher occupancy rates and less turnover, leading to stable profits for property owners.
- Incentives and Funding: In order to promote environmentally friendly practices, there are various incentives, funding options, and grant opportunities available for sustainable real estate projects. These incentives encourage developers to adopt sustainable practices and contribute to a more sustainable future.
Efforts Undertaken in the UAE Real Estate Market
The UAE real estate market has been actively implementing sustainability measures for many years. However, post-COVID-19, these efforts have been amplified. The emergence of Expo 2020, which followed the pandemic, witnessed a massive drive towards sustainability due to the increase in tourism, short-term residential occupancy, and property investments.
In comparison to 2019, the real estate market in the UAE experienced a significant rise in value and total volume, with a 90% and 44% increase, respectively. Additionally, the recent COP 28 event held in the UAE focused primarily on sustainability and the measures to be undertaken. During this time, the UAE approved 78 environmental projects and initiatives, highlighting the importance of sustainability in the country.
These environmental initiatives aim to prioritize the adoption of sustainable practices in innovation and development. They emphasize that future growth in the real estate market and the rest of Dubai’s economy will be achieved in a sustainable manner.
Sustainability Laws and Regulations in the UAE
The UAE has implemented significant projects that require compliance with new laws and regulations focused on sustainability. Developers are now required to provide a sustainability brief, discussing sustainability targets, and have it approved by the green sustainability rating system. Furthermore, the evaluation of environmental impacts and sustainability measures at each stage of the building life cycle is mandatory.
Government policies mandate that Dubai, as the most attractive tourist destination, achieve a minimum bronze rating under the Al Safat rating system. These policies also require adherence to green building standards, waste management practices, and energy efficiency requirements. Urban planning regulations focus on sustainable urban development, zoning laws for green spaces, mixed-use developments, and sustainable infrastructure.
The Sustainability Goals in the UAE
The UAE has set ambitious sustainability goals for the future. By 2030, the country aims to reduce emissions by 56% and achieve 40% energy efficiency in the construction sector. Dubai, specifically, has a key goal of ensuring that 25% of buildings in the city are constructed using 3D printing technology by 2030.
In addition to these goals, the UAE aims to reach net zero emissions by 2050. This suggests that the real estate sector must eliminate its carbon footprint and collaborate with value chain players to mitigate the effects of climate change. In the coming years, the UAE real estate sector may be subject to regulatory requirements designed to drive a transition to net zero.
By embracing sustainability in the real estate industry, Dubai and the UAE as a whole can pave the way for a more environmentally friendly and economically sustainable future.
See more:
https://www.dwtc.com/en/industry-insights/the-rise-of-dubai-s-post-pandemic-real-estate-market/?trk=public_post_main-feed-card_feed-article-content
https://www.linkedin.com/pulse/importance-sustainability-real-estate-development-how-build-yrmnf#:~:text=Building%20sustainable%20homes%20and%20buildings,green%20roofs%20and%20increasing%20vegetation.
https://www.linkedin.com/pulse/sustainable-projects-uae-10-tips-from-brief-delivery-bagherian
https://u.ae/en/more/uae-future/2021-2030
https://www.linkedin.com/pulse/sustainable-real-estate-development-legal-ftlgf
https://www.khaleejtimes.com/uae/environment/dubai-real-estate-leads-in-sustainability-drive?_refresh=true
https://aesg.com/perspective/a-practical-approach-to-implementing-net-zero-in-the-mena-real-estate-sector/
