Construction & Infrastructure

From Sand to Sustainability: UAE Real Estate Green Revolution

The UAE construction market is expected to grow from US$41 billion in 2024 to US$50.40 billion by 2029, survey by Turner and Townsend

SME News Service

The UAE has amplified its 2030 targets to 31% under the 2050 Net Zero strategy, encouraging the construction of energy-efficient buildings with the use of eco-friendly building materials.

Turner and Townsend have reported that UAE’s construction market is projected to grow by a CAGR of 4.26%. Government initiatives and investments are key in the promotion of construction activities. Added to that, proactive policies by the government with a US$17.307 billion budget for 2024 are dedicated to supporting this growth.

The UAE’s rapidly expanding construction sector is committed to lower CO2 emissions from design and construction, to operation. Since 2018 the National Committee on SDGs has aligned national policies with SDGs for their effective implementation.

Leadership in Energy and Environmental Design (LEED) Certification is one of the popular green building certifications in the UAE utilized for sustainable and energy-efficient construction.

It consumes almost 25% less energy compared to non-LEED certified buildings and overall increases property value, says pioneer cleantech company, EnPowered.

Increased Demand for Sustainable Developments to Diversify Offerings in Real Estate Sector

In 2023, only 22% of buildings have LEED certification across Dubai. However, during the post-2020 period, Savills' research acknowledged over 550 LEED-certified building projects in Dubai alone, which are expected to be delivered by 2030, widely highlighted by other news sources, including the Arabian Business.

In addition, Dubai is leading the world in exclusive residences with more than 80,000 residential spaces under different phases of construction under sustainable practices, as disclosed by Savills report 2023.

On the other side, since the Estidama initiative in 2010, Abu Dhabi constitutes nearly 50.3% of institutional buildings, as reported by the CBRE group.

Top Innovative Green Projects

Palm Jebel Ali

An island with premium residences being developed by Nakheel. According to Khalid Al Malik, Chief Executive Officer of Dubai Holding Real Estate: “The island spans 13.4 kilometers of land, with 10.5 million square meters of development.

"It features 16 fronds, with a total of 110 kilometers of coastline and 91 kilometers of beachfront, contributing to Dubai's 2040 Urban Master Plan targets to increase public beach length by 400%.

"The island relaunched in 2023, approximately will be home to 35,000 families, contributing to the projected residency of 5.8 million people by 2040.”

The project has coral villas and beach villa themes with luxury futuristic amenities like sports courts, a retail center, jogging tracks, a fitness center, a swimming pool, a beach club, restaurants, and many more.

The villas and mansions have coral and beach themes, with sizes ranging from 7,316 to 12,165 Square Ft. The project is in progress under environmental sustainability commitments. The possession is expected to be handed over in 2027.

Louvre Abu Dhabi Residences

Louvre Abu Dhabi Residences is an iconic sustainable residential complex launched in 2022(Q1) having 400+ apartments under construction. The project has stunning ocean views, being developed by Aldar Properties at Saadiyat Grove.

The chief executive at Aldar Development, Jonathan Emery states: “Louvre Abu Dhabi Residences echoes the values, quality and timelessness of the cultural powerhouse that is Abu Dhabi,” highlighted by various news sources including The National News.

Every residence is crafted with sophistication and sustainable design along with LEED certification, says Innovo group. The residential spaces are expected to be handed over to residents by 2025.

Aljada

Aljada is another 220-hectare megaproject by Arada, designed by Zaha Hadid Architects. It will be home to nearly 70,000 residents by 2028 with 500 square meters of prime office spaces, reported by industry experts, including Scavo Intelligence.

There will be green spaces and greenery that will promote a balanced lifestyle.

The Senior Director of Development of Arada, Maher Metraji said: “Aljada is a very interesting project; very complex and challenging. There is a story behind every spot of this project."

He further added; “When you drive to Aljada, you can see parks, gyms, pools, open cinemas, jogging tracks, shops, restaurants – everything you would require whether you live here or visit,” says The National.

RAK Central

RAK Central is a mixed-used development project under Marjan Developers, designed to increase Emirates business and tourism.

It comprises over 4,000 residential apartments, almost 3 million square feet of rentable office spaces, and 1000 parking spaces with several retail and entertainment facilities.

The project follows LEED Gold certification and is projected to be completed by 2026.

Abdulla Al Abdouli, Chief Executive Officer, Marjan, said: “RAK Central will usher in a new era of economic growth for Ras Al Khaimah, with a focus on not only providing international investors with high-value property but also by serving as a hub for businesses.”

Wrap Up

The shift towards sustainable real estate is not just limited to residential or office spaces. The UAE is also welcoming eco-friendly construction techniques and sustainable architecture. Moreover, UAE’s projects collectively signify its strong commitment to a sustainable future and innovation.

Read More: World’s Greenest Highway Unveiled in Dubai

ACCIONA Secures 300 Million Euro in Sustainable Financing for Projects in the GCC Area

Sustainability and Extreme Weather Resilience Drive Over 100% Year-on-Year Growth for AESG MEP Division

AIQ and Inception Announce Partners to Revolutionize AI Solutions for the Energy Sector

Masdar and Presight Sign Agreement to Develop AI Asset Management Tool

Royal Commission for Alula Affirms Commitment to Sustainability and Ambition To Drive Positive Change