Developer ZaZEN Properties says that investors are willing to pay a premium for sustainable properties
ZāZEN Properties, Dubai’s leading sustainable property developer, has observed an increased interest in sustainable real estate. The homegrown brand cites that 80% of investors in the UAE’s real estate sector are now prioritising sustainability, while the sentiment among foreign investors is similar; 70% are 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. 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. With global data showing that 90% of these demographics are making an active effort to reduce their environmental impact, the appetite for sustainable residential real estate is growing.
Although the UAE’s property market generates approximately 5.5% of the country’s overall GDP, there is potential for it to contribute further as more progress towards a sustainable future is realized. This wise leadership of the country is aware of this and countless 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 the 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, over 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 UAE’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. Construction and off-plan sales are ongoing and with 50% of the inventory already sold, the growing interest in high-quality sustainable projects is evident. With the scheduled handover in April 2024, a reduction of 470 metric tonnes of carbon emissions will be achieved annually. ZāZEN Properties’ flagship project, ZāZEN One in Jumeirah Village Triangle, is also a noteworthy sustainable development that has received rave reviews and multiple awards since it was handed over last year.