ZāZEN Properties, a leading sustainable property developer in the UAE, cites that the country’s starring emirate of Dubai is bolstering the overall strength of the nation’s residential real estate sector. Dubai’s strong trajectory in the domain of off-plan property sales has been evident through the first half of 2023, as 57% of transactions in this segment ranged between AED 500,000 to AED 2 million. Madhav Dhar, COO of ZāZEN Properties explains why the coming years will present an ideal opportunity for off-plan real estate investors.

COP28 is on the horizon, and deadlines to meet sustainable policies like UAE Net Zero 2050 and the Dubai 2040 Urban Masterplan are inching closer by the day. This has resulted in real estate developers increasingly building projects with sustainability at the forefront, a welcome sign in line with HH Sheikh Mohammed’s recently announced urban planning law which seeks to further bolster Dubai’s sustainable residential landscape.

The new law will be instrumental in helping to establish an environmental impact assessment and strategic environmental assessment system, ensuring adherence to Dubai’s sustainable agenda. Moreover, there will be a greater level of transparency and accountability to ensure upcoming residential developments align with the UAE’s carbon reduction objectives. In the same way that the UAE has invested over $1.3 billion into renewable energy projects in 65 countries, Dubai’s real estate market will surely see innovative changes that further distinguish its industry from other cities around the world.

Madhav explained: “About 9% of the earth’s greenhouse gas emissions stem from the MENA region with building materials, construction, and building operations responsible for half of this environmental impact. Aware of the importance of mitigating these effects, the UAE is spearheading the Middle East’s eco-friendly efforts by implementing forward-thinking policies and encouraging more sustainable residential developments to create future-proof concepts which achieve ambitious targets.”

Despite great strides still needing to be made, the emirate has been performing remarkably well in recent years and this momentum has been sustained in H1 of 2023. An array of new projects have been rising at a rapid pace, and investor interest has been high with the Dubai Land Department (DLD) reporting 60,440 transactions worth AED 177.3 billion through the first six months of this year; these eye-popping figures accounted for the highest semi-annual sales period in the emirates’ history and firmly positions the city to outpace previous projections from earlier this year which forecasted an AED 300 billion target.

This notion is reinforced when observing data that shows a 38% increase in value for off-plan residential transactions, and a 30% increase in volume during Q2 when compared to the same period last year. As more developers continue building with a mindset that prioritizes the environment’s well-being, and investors make conscious efforts to purchase properties that will spur a positive environmental impact, the market will maintain its strength.

He added: “Speaking from an industry perspective, there are several ways in which developers can construct green builds and there is no better time than now. Investors are flocking to Dubai because its resilience through times of turbulence is proven, as is its ability to yield a strong ROI. Buyers who enter the market now will benefit from a positive market outlook that points to 2030 and beyond – whether they are aspiring to live in these developments, rent them out, or flip properties for profit.”

Industry analysis, alongside historical data, indicates that buying off-plan is a lucrative investment strategy with Dubai’s population skyrocketing and demand for homes set to grow in parallel. An average price rise of 22% in the city’s rental market during the first six months of 2023 is exemplary. As sustainable construction in Dubai’s residential real estate sector continues for the coming decades, off-plan investors are poised to see even greater returns. ZāZEN Properties’ latest project, ZāZEN Gardens in Al Furjan, is set to demonstrate this first-hand; while also contributing to the environment through its LEED Gold rating, a rarity for residential developments in the emirate thus far, as well as its Well-Being integrated design and a vast range of environmentally-friendly practices.