The UAE is the hub of the real estate domain and offers lucrative opportunities for realtors, builders, consumers and buyers alike. The numbers of the real estate industry in the UAE speak for themselves regarding the sector’s resilience.
With the world moving towards green energy, real estate builders in the UAE have also changed their perspectives. Cities like Sharjah have been focused on incorporating green energy in their projects since climate change has taken the world by havoc. With astoundingly good options like those of 5 BHK villas in a sustainable city, buyers do not find any harm in choosing a green factor-supporting neighborhood.
The change in perspective amongst developers in relation to green energy is expected to boost the real estate value. If you are wondering how?
Then hop on this bandwagon as we explore the array of factors contributing to this train of thoughts.
1. Real estate Sector & Green Energy
Throughout the world, governments have been focused on boosting the green factor in various sectors. Whether it is real estate or industrial domains, green energy is the new talk of the town. Cities like Dubai and Sharjah are already taking pride in moving forward in the direction of sustainable energy. The lucrativeness is never-ending, with options like a 5 BHK villa for sale in a sustainable city. Adding zest to it is the fact that it is an excellent option for investors.
UAE has shown rapid growth and development in the past 50 years. One key feature of the pursuit was the pioneering leadership quality and the willingness to innovate. The real estate sector of the UAE is no exception to the leadership potential previously shown by the country.
The real estate sector so far has recorded $6.1 billion worth of transactions in the first quarter alone. In July, Dubai reaffirmed this notion by registering $2.9 billion in transactions in a single week. With the first half of 2022 in Abu Dhabi demonstrating high resilience, the real estate sector is growing.
Moreover with the Dubai 2040 Urban Master Plan on its way to completion, the government is maximizing its resources. One of the primary goals in the master plan is to grow green areas by over 100%. If the real estate sector meets this goal, it will contribute to UAE’s goal of Net Zero 2050. As a result, the value of the real estate in the UAE market will be significantly boosted with the green factors incorporation.
With the rise in talks about global warming, consumers are more concerned than ever about companies opting for green energy. If builders in the UAE incorporate green energy in their projects, the rise in value and demand will be unmatched.
Not to forget is the fact that real estate activities in the UAE generate 5.5% of the total gross domestic product for the country. This notion is likely to continue in the future as the government focuses on economic diversification. The goal for UAE to go green and digital will be boosted if the real estate sector focuses on solar roof technologies and other sustainable development practices.
2. Green energy in UAE
The UAE real estate market has rebound from the COVID-19 pandemic due to numerous factors. One crucial factor among those reasons for the rebound was flexibility. Today the UAE real estate market can choose to adopt flexibility once again to pursue its green future.
The incorporation of green energy will not only improve the global warming condition in the world but also improve the lifestyle standards for residents of UAE.
3. Property development and occupancy
According to property developers, the real estate of UAE can contribute to “clean” infrastructure if it focuses on incorporating green technology. The addition of developmental features like solar panels alone can save up to 28% in energy output and electric car charging stations.
Developers who will focus on providing eco-friendly habits among residents can promote eco-friendly practices. As a result, the country’s green agenda can be contributed collectively.
According to research published by a global real estate service company, 63% of leading investors strongly agree that green strategies can lead to higher occupancy rates, higher rent process and higher tenant retention rates. If Dubai 2040 turns out to be a resounding success, then the chances for an overall high value for property developments can be expected.
Benefits for real estate
If property developers focus on incorporating green energy projects with a sustainable mindset, then the chances of thriving in the future of the UAE are pretty high for them.
For instance, if they introduce vast areas of greenery in the design of the development, then this can have a dual impact. It will be aesthetically pleasing for residents along with green energy contributions. It will reduce the area of hard surfaces and thereby decrease the heat absorption rate. In countries like the UAE, where summer temperatures rise rapidly, it will be highly beneficial and can save long-term expenditure and associated costs.
Green factors will boost real estate values in UAE through the reduction in energy output. Solar panels, for example, can save property developments up to 28% of energy expenditure. In order to encourage this trend, the country offers low tariffs and a Power Purchase Agreement (PPA) in the world.
The price for solar panel systems in the UAE has dropped by almost 76% in recent years, and this, in turn, has spearheaded several projects. The project will provide electricity to approximately 1.6 million houses in the UAE with tariffs of $13.50 per megawatt-hour, thereby making it one of the lowest solar PPA costs in the world.
The solar benefits are being exceedingly realized in the UAE real estate market. The country is expected to hit a Compound Annual Growth Rate of more than 15 per cent by 2027. Property developers who will strategically implement this solar infrastructure idea will, in turn, have a lot to gain.
To conclude,
Real estate builders who will trail the blaze for green energy in today’s economy will be seen as leaders in the world economy. In the long haul, the future is green energy and property developers who will focus on incorporating the idea today will reap the benefits.
Also read: Which Kind of Property in Dubai is Better To Look Up To Invest in 2022?
