Investing in Dubai has never been so attractive, and not purely because of the sizeable financial gains. The UAE government has been working extensively over the last couple of years, in close collaboration with the UN as part of their 17 Sustainable Development Goals, to ensure that they achieve a perfect balance between the economic and social development of the city, and their hard work is starting to become visible across the Emirate in the form of clean air regulation, energy saving measures and innovative hydroponic technology that is vastly reducing the city’s carbon footprint.
Over the past century, the population of Dubai has grown from 10,000 people to over 2.1 million, with an addition 8–10 million visitors per year and the regions property developers have been answering the question of sustainability with increasingly innovative solutions. In fact, the development of the entire city has aligned to the new sustainability goals after Dubai pledged to make Expo 2020 the first sustainable expo ever!
At the start of 2017, the Dubai Supreme Council of Energy announced the launch of the private sector platform of the World Green Economy Organisation (WGEO), and they also introduced the Al Safat System to issue building permits only to developers who adhere to the green building standards.
Masdar City in Abu-Dhabi was one of the first sustainable developments to break ground as a global clean energy pioneer and the hub for cleantech companies in the UAE, and Sustainable City in Dubai is another example of the move towards green urban development.
And, in addition to the certified green developments, Dubai is establishing a number of smart city concepts, such as the D3 Design District, that are enabled with the infrastructure and technology to fuel sustainable economic growth. Initiatives up and running in these smart cities include electric vehicle power & charging, network enabled utility metering, smart irrigation, smart lighting, solar roofs, and advanced parking management.
So, what does Dubai’s green dreams mean for property investors?
Well it means that Dubai is increasingly becoming a world-class city with an impeccably high standard of living and is drawing the attention of top global talent. With 3 years to go until Expo 2020, it would seem that 2017 is the sweet spot for individuals to invest in the Dubai real estate market.
Sentiment in the Dubai property market has stabilized and strengthened over the start of 2017 and there are some great value homes, apartments and hotel apartments ripe for investment.
The Expo 2020 and sustainability goals have even inspired new property concepts like the iSuites hotel investments in Dubai Investment Park (DIP), adjacent to the Expo 2020 site, where individuals have the chance of owning a share of the brand-new iSuites Smart Hotel Apartments. The project is expected to return an appreciation of 50% in just four years, with each individual hotel apartment yielding 12% net ROI per annum. With an expected influx of 25 million visitors anticipated for the Expo 2020, property experts have predicted that these innovative investment opportunities are going to be highly profitable.
The best thing about all of Dubai’s new developments is that they aren’t happening in isolation. Developers and the government are working closely to ensure a lasting physical legacy long after the last Expo 2020 visitor has departed. This sustainability is at the core of Dubai’s green dream and it looks like it will become a reality.