Dubai’s real estate market will carry momentum into 2023 as the UAE’s non-oil sector sees growth in the year ahead, says ZāZEN Properties.
Non-oil growth is forecast to expand by 3.9 percent in 2023 and that will have a positive impact on the property market in Dubai says the sustainable property developer.
As the UAE looks to diversify its economy away from dependence on the oil industry, proactive measures set in place by the government have equipped the UAE to be more sustainable.
The coming year is poised to reinforce that its efforts have been, and will continue to be fruitful.
The UAE’s Fourth Industrial Revolution Strategy was launched in 2017 to aid diversification efforts and advance the national economy by means of innovation and future technologies.
Along with “Operation 300bn”, who’s goal is to transform the flourishing industrial sector, with a focus on strategic industries such as food, agriculture, water and healthcare, the goal of the UAE is to help reduce dependence on global supply chains and add to the national economy.
Consistent actions, across several sectors, have been taken to realize this vision. Within real estate, there have been a growing number of initiatives put in place to improve environmental sustainability and enhance the human lifestyle, making investments within the sector appealing to a global audience.
This can be attributed to a strategic focus area entitled “Intelligent Cities”.
Making buildings greener to meet the demands of regulators, investors, and tenants is often costly; it will reportedly take $5.2 trillion over the next decade alone to decarbonise the built environment.
However, studies on the value of the “green premium” in real estate have shown that green certifications can yield a rent premium of 6 percent and a sales premium of 7.6 percent.
The UAE’s ZāZEN Properties recently launched off-plan sales for its newest project, ZāZEN Gardens in Al Furjan, which is the first LEED Gold & Well-Being Integrated development in the area.
25 percent of the units have already been sold off-plan since the mid-December launch and construction is successfully underway, highlighting the strength of the brand and the off-plan segment in Dubai.
With a significant investment required to decarbonise real estate, particularly in older buildings, where retrofitting more sustainable materials and designs can be highly complicated, a new wave of eco-friendly projects will ensure key UAE initiatives like Dubai 2040 and Net Zero 2050 are achieved.
Madhav Dhar, co-founder, and COO of ZāZEN Properties commented: “Real estate and construction are set to maintain an upward trajectory, especially in Dubai.
“The UAE’s industrial and manufacturing focused strategies, along with the UAE Tourism strategy, will foster the growth of new opportunities, leading to a requirement for fresh talent and capabilities, creating jobs, and enhancing the country as a truly global hub.
“This will sustain the country’s real estate growth and, as the employment landscape works towards reaching pre-pandemic levels once again, additional housing will be needed to accommodate existing and new residents alike.
“Furthermore, the UAE Golden Visa rules and residency by real estate investment schemes will continue to open the doors for more people to invest and live in Dubai.”
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