Dubai’s skyline is poised for a profound transformation, with developers redrawing their project blueprints to harmonise luxury with sustainability amid the acceleration in momentum for green buildings and green spaces post-COP28, industry insiders said.
The emirate is also expected to see a quantum leap in housing stock from the new year onwards as real estate companies gear up to meet the surging demand in view of the rising trend of tenants rushing to own properties and also the anticipated increase in population necessitating more housing needs.
“Post-COP28, sustainability takes centre stage, with Dubai anticipated to see a surge in eco-friendly developments,” Farooq Syed, CEO of Dubai-based Springfield Properties, who is also considered as a distinguished industry leader, told Arabian Business.
“The demand for green spaces in both residential and commercial sectors is experiencing a remarkable upswing currently as property investors are increasingly focusing on sustainable real estate,” he said.
Syed, who is also a highly regarded industry influencer, hosting Dubai’s largest real estate channel on YouTube, said with the momentum for green buildings and green spaces witnessing increased prominence at the recently concluded global climate change conference in Dubai, the demand for eco-friendly and sustainable properties will see further surge in demand in the coming years.
“In 2024, companies will continue to align sustainability with their agenda, gaining favour among investors and reflecting a broader societal commitment to environmental consciousness,” the Springfield Properties top executive said.
Impact of COP28 on sustainable development and urban growth in Dubai
Industry players in Dubai said developers are increasingly aligning themselves with UAE’s national ESG commitments which place sustainability at the core of urban planning.
The sustainability momentum is gathering pace even as the Dubai 2040 Urban Master Plan reportedly setting an ambitious planning for a projected 7.8 million residents in the emirate, necessitating an almost doubling of the existing housing stock, they said.
In 2024, Dubai’s property prices are anticipated to grow by 5 percent, while the real estate market is forecast to expand by 15 percent, witnessing a significant shift as more Dubai tenants transition into homeownership, adopting a long-term perspective.
Syed said the city’s real estate expansion, propelled by a 16 percent jump in prime property prices over the past year, underscores a commitment to sustainability.
“Developers are increasingly incorporating eco-friendly features like solar panels, green roofs, and green building certifications,” he said.
Buyers in Dubai are also increasingly seeking sustainable habitats, emphasising minimal environmental impact and diversification of property types, including affordable housing options alongside high-end developments, Syed said.
UAE skyline is getting increasingly dotted with exemplary sustainable projects
Industry insiders said the sustainability drive is fast spreading across the UAE, with pioneering projects such as ‘The Sustainable City’ in Dubai, ‘Masdar City’ in Abu Dhabi, and ‘Sustainable City’ in Sharjah dotting the country’s skyline.
“These developments establish benchmarks for eco-friendly living, aligning seamlessly with evolving consumer preferences,” an industry analyst said.
Developments such as ‘The Acres’ and Aldar’s ‘Haven’ have significantly increased green spaces, adopting a single-row villa layout to ensure greenery behind each residence.
Syed said with the rise of remote work, the demand for properties offering sensory outdoor experiences is also fast rising.
“Families and work-from-home professionals seek properties that complement their lifestyles with educational and tranquil outdoor spaces,” he said.
Interestingly, the Springfield Property top honcho said, the sustainability drive in Dubai is taking place alongside the increased adoption of new age technologies such as AI, IoT and smart home systems in real estate development, enhancing efficiency and user experience.
The smart home market in the UAE is poised for robust growth, reaching $113.8 million by 2028.
“As we approach 2024, the Dubai real estate market is expanding in scale and development. The focus is on harmonising luxury with responsibility and innovation with sustainability,” Syed said.
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