The Dubai property market is expected to witness the biggest price growth in the world by the end of 2023, surpassing top cities such as Miami and Paris, according to a “Dubai Property Market Forecast for 2023” report. Even though the cost of prime properties is expected to increase 50% by the end of 2023 when compared to 2021, luxury housing in Dubai is still more affordable than anywhere else in the world despite massive price growth projections.

The increased prices are directly correlated to the overall increase in sales, where the emirate has witnessed a total amount of AED 261 billion registered in 2022. This is a 75% increase from the AED 149 billion that was logged in 2021, and the sector was recently forecasted to surpass this target and reach AED 300 billion by the end of 2023. ZāZEN Properties, a leading sustainable property developer in the UAE, highlights the significance of this growth, especially for the country’s sustainable real estate sector.

HH Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister of the UAE, and Ruler of Dubai, recently approved 78 environmental projects and initiatives in an effort to emphasize the importance of sustainability. This timely announcement aligns with the fast-approaching 28th Conference of Parties(COP28), an annual gathering that is held every year to discuss climate change and shed light on its importance across various sectors. With this year’s session set to be hosted in Dubai, residents from the UAE and KSA have been cited as the most globally aware of the challenges pertaining to sustainability; a recent survey by construction analytics software company, Procore, found that 91% of regional respondents say decarbonisation of construction projects will be an important challenge within the next three years.

Furthermore, the report also states that firms in the UAE and KSA have made it a priority to adopt sustainability practices in their projects, with 43% of companies in these countries already following the ISO 14001 – Environmental Management System standard. Moreover, 45% of organizations in these GCC nations aim to become compliant within the next 12 months. The implementation of these practices will lead to a more sustainable methodology for firms, not just in the UAE and KSA but also throughout the Middle East as other countries follow this lead.

Madhav Dhar, the co-founder and COO of ZāZEN Properties, stated: “The UAE and KSA markets have started to adopt sustainability as part of their everyday practices, which is a great sign and incentive for developers to start including more sustainability-friendly practices across all their future projects. Insightful initiatives such as COP28 will also help push this narrative and create a strong positive impact in enhancing awareness about the importance of this. As the sector continues to grow for both countries, sustainable real estate is required not just for a more safe and environmentally friendly community but also from a business perspective to help companies operate more efficiently and propel the industry’s financial performance. With overall demand for property continuing to increase, customer demand and the requirement to live in more sustainable spaces will follow as a priority for both homeowners and investors.”

As the government continues to place a high priority on efforts to lessen the country’s carbon footprint while catering to the shift in demand, environmentally friendly living in Dubai is becoming a reality. In line with initiatives such as COP28 and the country’s commitment to UAE Net Zero 2050, companies like ZāZEN Properties have created a product that allows end-users and investors to purchase apartments that are sustainability-friendly. The homegrown brand has not only launched Dubai’s first LEED Gold-certified and Well-Being integrated development but also provided prospective buyers with affordable prices; ZāZEN Gardens, which is located in Al Furjan, is sold out and construction is 35% complete.