UAE property investors are increasingly looking for sustainable developments, says ZāZEN Properties.
The Dubai-based developer says 80% of investors in UAE real estate are now prioritising sustainability, while the sentiment among foreign investors is similar, with 70% willing to pay a premium for sustainable properties.
Millennials, those who were born in the early 1980s and mid-1990s to early 2000s, have consistently been the main group of home buyers in the UAE since 2010.
Sustainable property in UAE
However, Gen Z, individuals who were born between the late 1990s to early 2010s, are expected to surpass them in the coming years.
Despite this projection, millennials will continue playing a key role in the country’s real estate success.
Global data shows that 90% of these demographics are making an active effort to reduce their environmental impact and the appetite for sustainable residential real estate is growing.
Although the UAE’s property market generates approximately 5.5% of the country’s GDP, there is potential for it to contribute further as more progress towards a sustainable future is realised.
The UAE is aware of this and environmentally focused initiatives have been implemented as a result, with the Dubai 2040 Urban Masterplan and UAE Net Zero 2050 being among the most recognizable.
The UAE is leading the sustainability trends among GCC countries with the highest share of green buildings in the Middle East and North Africa (MENA) but it continues to stand out.
An announcement was recently made that Expo City Dubai will soon unveil sustainable residential developments; this same plot was used for the highly successful Expo 2020 and it has been dubbed a blueprint for “green” urban planning by retaining 80% of its original built infrastructure, including 123 LEED-certified buildings and eight CEEQUAL-certified projects.
Madhav Dhar, co-founder, and COO of ZāZEN Properties, said: “When it comes to achieving the UAE’s green mandate, great strides have already been made across all industries but it is now becoming more noticeable in real estate.
“This is increasingly apparent as more sustainable projects are being unveiled, both residential and commercial. For instance, more than 60% of the total office space in the UAE is now considered energy-efficient.
“Similarly, several mixed-use communities and pedestrian-friendly streets are also rising, which can lead to higher rental yields and property values.
“With that said, developers who design with sustainability in mind, investors who pursue eco-friendly real estate investments, and buyers who aim to live sustainably as the world moves towards a more sustainable future – all stand to benefit.”
ZāZEN Properties is now adding more value to the United Arab Emirate’s sustainable residential landscape with ZāZEN Gardens in Al Furjan.
It is the first LEED Gold-certified development with Well-Being Integration, near The Gardens metro station.
With the scheduled handover in April 2024, a reduction of 470 metric tonnes of carbon emissions will be achieved annually.
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