UAE’s green building race intensifies

Last month, Abu Dhabi-based Aldar Properties announced that the real estate development management and investment firm has committed to invest AED25 million in energy retrofit projects in 13 residential communities, WAM reported. The move is expected to reduce utility consumption for owners and tenants as part of the company’s efforts to make its neighborhoods more energy efficient and environmentally friendly.

Aldar’s investment will offset 19,000 tonnes of CO2 per year and reduce utility consumption by AED12 million per year in 13 communities. The plan was developed in conjunction with the Community Home Owners Association managed by Provis, Aldar’s real estate property management company. Grfn will act as the energy project management company, while Siemens will execute the retrofit project.

A first for an Abu Dhabi developer, the company’s investment in its community is incremental to an ambitious portfolio energy management project announced in early 2022. The project will improve efficiencies across a range of Aldar hotel, school, commercial, leisure, retail and residential buildings.

Commenting on the project, Aldar Chief Financial and Sustainability Officer Greg Fewer said: “Our commitment to reducing energy consumption in residential communities reflects our pioneering role in reducing our carbon footprint in the region’s real estate industry. The What makes the project special is its innovative structure that enables a substantial capital investment in community assets while reducing energy consumption, carbon footprint and community service charges. We are proud of our team’s ability to plan and execute true win-win solutions that The proposal moves our industry forward and adds tangible value to owners within the Aldar management community.”

Aldar’s broader energy management plan announced in January is expected to reduce consumption by 20 percent and support the company’s efforts to align its sustainability practices with the UAE’s long-term carbon reduction goals. The retrofit project is a major milestone in the company-wide journey to net-zero decarbonization – it will reduce carbon emissions by 80,000 tons per year, electricity consumption by 110 GWh, water consumption by 886,000 cubic meters and gas consumption by 726,000 cubic meters Meter.

Also in Dubai, the push for green in its real estate sector, through initiatives such as the Dubai 2040 Urban Master Plan, sees good synergies between government and corporate players. The initiative is expected to maximise the use of the country’s resources through a number of goals, including expanding the emirate’s green space by more than 100%. However, the industry’s push for green solutions was much earlier, even before the UAE’s green economy movement, when Dubai launched its Green Building Regulations and Codes project in 2011, anticipating the need for sustainable industry growth .

Haider Tuaima, director and head of real estate research at international consultancy group ValuStrat, sees the initiative as being relevant to the real estate industry’s role in supporting Dubai and the UAE’s drive towards a greener economy. “The Dubai Green Building Regulations and Codes project, launched by Dubai Municipality in 2011, is a strategy aimed at balancing economic development and environmental protection.

“Initially enforced only for government buildings, after three years, the regulation is enforced for all new buildings in Dubai. Key goals include reducing energy and water consumption and sustainable solutions for recycling waste.”

However, Tuaima added that opting for a green solution in any development could cost more. For example, installing solar panels and batteries to store energy requires a high initial cost. “However, this is likely to be seen as an investment in reducing energy consumption in the long run. The good news is that as tenants’ demand for sustainable buildings continues to increase, which in turn leads to higher rents and capital values, suppliers due to increased competition Continuing to innovate and reduce costs will help enable the overall green building movement of the future.”

In fact, sustainability has been one of the key components of Dubai’s rise as a cosmopolitan haven, says Andrew Cummings, Senior Residential Leader at Knight Frank Middle East Global Advisors.

“Indeed, Dubai’s focus on non-oil revenue has been a key part of the UAE’s own sustainability efforts. With a rapidly growing population expected to almost double over the next 20 years, the city has recently made strides in sustainable real estate. considerable progress.”

Cummings agrees with Tuaima’s innovation in Dubai’s real estate industry to build momentum in sustainable building solutions, saying: “Sustainability has gained huge traction in the commercial sector, such as the green rating system. The rating system is developed based on sustainable sites. and the use of alternative energy sources such as solar and wind to rank buildings. Initiatives such as the Green Rating System are part of the larger Dubai 2040 Urban Master Plan, which aims to increase green space by 100% and provide the UAE with 100% more green space by 2050. contribute to our ambition to achieve net-zero emissions by 2020.”

In the residential sector, Sustainable City is Dubai’s first zero-energy development, while master-planned communities such as Al Barari and Tilal Al Ghaf have a particular focus on sustainability in the luxury market, Cummings said. He added that developers such as Green Group are also leading green living with solar energy at JVC’s flagship Signature Living project.

Ultimately, it is undeniable that the future of living is all about green and sustainable shelter for all. Cummings praised the role of Dubai and the UAE in fostering sustainable growth, while hinting at what lies ahead, Cummings said: “With a growing population, the redesign of traditional real estate development is important for a city and a country. It’s inevitable. Embrace sustainable change and diversity.”

– Input from institutions