Sustainable Real Estate Demand in Dubai and Sharjah Sees Over 40% Growth in 2025
Real estate company officials in Dubai and Sharjah reported that local markets have witnessed a significant increase in demand—both for sale and rental—for building units that meet sustainability standards, with growth rates exceeding 40% since the beginning of this year.
Speaking to Emarat Al Youm on the sidelines of the recently concluded "Acrex Investment Expo" in Sharjah, they pointed to a noticeable shift in consumer behavior, with rising interest in sustainability-compliant properties. This increase is supported by the growing variety of such properties on the market and a heightened awareness among buyers and tenants of their long-term value.
Shift in Consumer Behavior
Ahmed Obaid Al Qaseer, Executive Director of the Sharjah Investment and Development Authority (Shurooq), stated:
"Recently, there has been a notable shift in the type of real estate demand, with significant growth in interest for sustainable real estate units, coinciding with a wider range of such options becoming available on the market."
He added, "Demand for eco-friendly properties now exceeds pre-COVID-19 levels, driven by growing awareness of their benefits and returns." Al Qaseer explained that Shurooq has recorded strong demand for units within the Sustainable City project, prompting the launch of a third phase consisting of 300 villas, scheduled for completion in 2024.
He noted that sustainability in real estate development requires various standards, including water recycling, increased green spaces, use of solar energy, and environmentally friendly electronic appliances that conform to consumption-efficiency and low carbon emissions standards.
Key Drivers of Demand
Real estate expert and CEO of Bazlink Real Estate, Ismail Al Hosani, confirmed the notable rise in demand for sustainability-compliant units in both Dubai and Sharjah, with growth exceeding 40% since the beginning of 2025 compared to the same period in 2024.
He attributed this surge to several factors, including the diversity of supply, competitive pricing compared to conventional units, and the proactive role of real estate developers in offering green building projects in line with the UAE’s sustainability policies.
He also highlighted that clients are increasingly aware of the financial returns of sustainability—especially in energy and water savings—which translates into real benefits for property owners and tenants.
He added, "Most sustainable housing projects are also of high quality and are often classified under luxury real estate, which further boosts demand well beyond pre-pandemic levels."
New Projects
In the same context, Sufian Al Salamat, Executive Director at Al Soum Real Estate, stated:
"There are strong indicators of growing demand for sustainable building units in both Dubai and Sharjah, with increases of up to 50% since the beginning of this year compared to the same period last year."
Al Salamat predicted that this rising demand would encourage more developers to launch additional eco-conscious real estate projects, especially since most existing projects in Dubai and Sharjah have experienced high occupancy rates and strong investor interest.
He explained that sustainability offers multiple benefits, such as enhanced green space, reduced electricity and water bills through solar energy, and devices that significantly reduce consumption—leading to greater consumer awareness of these benefits.
He added, "The primary goal of sustainable units is to provide buildings that do not pollute the environment, reduce emissions, and optimize energy usage." Key sustainability criteria include the use of recycled building materials with low emissions, solar panels, and the integration of natural daylight systems in real estate units.
Al Salamat also emphasized the need for thermal insulation in buildings using heat-resistant glass and materials, and the importance of using energy-efficient electrical appliances. Additionally, sustainable units often provide extensive landscaping and tree coverage.
Strong Demand
Mohammed bin Issa, Executive Director of Asset Management at the Sharjah Asset Management Authority, confirmed:
"There is strong demand for projects that meet sustainability standards, whether through solar power integration or the provision of large green spaces." He noted that demand for sustainable real estate projects has currently surpassed 40% since the beginning of 2025, compared to last year. These figures also exceed pre-pandemic levels by a significant margin.