ZāZEN COO Shares Thoughts On Dubai’s Sustainable Agenda

Madhav Dhar also believes that it’s a great time to invest in off-plan properties thanks to the city’s sustainable policies and rapid growth

With COP28 on the horizon and deadlines to meet sustainable policies like UAE ‘Net Zero 2050’ and ‘Dubai 2040 Urban Masterplan’ inching closer by the day, real estate developers are increasingly building projects with sustainability at the forefront.  Moreover, with Dubai’s strong trajectory in off-plan property sales in the first half of 2023 (57 per cent of transactions in this segment ranged between AED 500,000 to AED 2 million), the coming years will be fruitful for off-plan real estate investors, believes Madhav Dhar, COO of ZāZEN Properties, a leading sustainable property developer in the UAE.

Sharing his thoughts on HH Sheikh Mohammed’s recently announced urban planning law which seeks to further bolster Dubai’s sustainable residential landscape, Madhav explains, “About nine per cent 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.”

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

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 per cent increase in value for off-plan residential transactions, and a 30 per cent increase in volume during Q2 when compared to the same period last year. As more developers continue building with a focus on the environment’s well-being and investors make conscious efforts to purchase properties that spur a positive environmental impact, the market will maintain its strength. “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,” says Madhav.

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 per cent 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.