Homebuyers in Saudi Arabia and the UAE are willing to pay an average 7 per cent premium for homes with sustainable features, while properties lacking them face a 4 per cent discount, according to a new survey by PwC Middle East.
The findings signal that sustainability has evolved from a differentiating factor to a baseline expectation in the region’s housing market.
The report, Green Pays: Sustainable Homes Command a Price Premium in Saudi Arabia and the UAE, was produced by the Strategy& Middle East Ideation Centre, part of the PwC network. It found that access to green finance increases willingness to pay by 9.6 per cent, underscoring how awareness and financial inclusion drive demand for sustainable housing.
Top motivators for buyers include energy and cost savings (45 per cnet), environmental benefits (44 per cent), and long-term value appreciation (43 per cent). The study also found that visible certifications and eco-labelling meaningfully influence buyer trust and purchase decisions.
The report comes as population growth intensifies housing demand across the Gulf. Saudi Arabia’s population is forecast to reach nearly 39 million by 2030, while the UAE’s population has surpassed 11.3 million, with Dubai exceeding 4 million residents in 2025. Embedding energy efficiency, sustainable design, and climate-resilient planning will be critical to ensuring livability and reducing environmental impact, the report said.
“We are witnessing a profound shift in how housing is perceived,” said Dr Yahya Anouti, PwC Middle East Sustainability Leader and Partner at Strategy&. “Homes are evolving from structures that shelter to ones that sustain and endure. As cities grow rapidly, sustainable housing is emerging as the cornerstone of resilient, low-carbon, and liveable communities.”
The research suggests the market has reached an inflection point. Developers that integrate sustainability can command higher prices and stronger brand value, while those that fail to adapt risk lower valuations and weaker market relevance.
Dr Fatima Koaik, Director of Behavioural Economics and Impact Evaluation at Strategy& Middle East, said: “The data tells a powerful story: consumers want homes that reflect their values and aspirations. Green housing is not just an environmental choice — it’s a lifestyle and financial decision.”
PwC concludes that the shift towards sustainable housing in the GCC is accelerating rapidly, driven by national climate goals, rising consumer expectations, and growing access to green finance.
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