Dubai Career Diary

The UAE is pushing forward with its sustainability goals, and it’s changing the game for real estate development. Sustainable development is no longer a choice, but a necessity for continuing to attract investments and boost market valuations.

Data supports the business case for sustainable development in the UAE. According to a 2022 report by JLL, 73 percent of investors worldwide believe that green certifications drive higher occupancy, higher rents, higher tenant retention, and overall higher value. This perception is even stronger in the MENA region, where 80 percent of respondents believe that building rents are subject to either a brown discount or a green premium.

Tenants want to be environmentally responsible, and they also want the lower utility bills associated with energy-efficient buildings. Such trends make sustainability a critical factor in business decisions.

The UAE continues to push forward with its sustainability goals through the introduction of net-zero energy buildings. The nation’s first net-zero energy commercial building was completed in Abu Dhabi in late 2023, utilizing 53 percent less energy than international baselines and generating 102 percent of its annual energy needs through solar panels.

This work is influencing broader market dynamics across the region, where there is clear market preference for properties that align with sustainability standards. In Dubai, LEED-rated properties, especially those rated Gold and above, account for about 24 percent of the monitored space and have an occupancy rate of 96 percent.

In Abu Dhabi, the scenario is similar. LEED-rated buildings now represent over half of the total institutional-grade gross leasable area, achieving an occupancy rate of 96 percent, markedly higher than non-LEED-rated buildings.

Some developers believe they need to choose between profitability and sustainability. But the trends outlined above point to a sustainable future where environmental responsibility and financial gains must go hand-in-hand. If we do not choose sustainability, we will, in fact, be left behind.