Dubai: Why luxury smart homes are in high demand

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UAE is seeing a surge in demand for eco-friendly designs and off-plan investments

2024-10-25T10:31:00+05:00

DUBAI: In a city where luxury is no stranger, Dubai’s high-end real estate market is witnessing remarkable growth, as both local and international buyers shift their focus toward eco-friendly and smart-tech residences.

A forecast from the UAE Central Bank predicts that real estate momentum will contribute to 4.1% GDP growth in 2025, with Dubai at the forefront, where sustainable luxury housing is capturing a significant portion of the market.

Why Smart Homes are in demand

Smart technology has become a defining feature of the luxury market. A recent report reveals that "90% of UAE residents are willing to pay a premium of 2.3% for a residence that offers smart home technology features." This trend reflects a clear shift in preferences, with both investors and end-users prioritising convenience and innovation.

The UAE’s smart home market is on track to generate $76.4 million in revenue this year, with growth projected to reach $113.8 million by 2028. This data underscores how technology is reshaping residential demand in Dubai.

How Green Initiatives shape the market

The UAE’s commitment to sustainability is integral to its real estate landscape. "UAE Net Zero 2050 is an initiative that’s made headlines for several years now, but the progress towards achieving this goal has never been more evident," says Madhav Dhar, COO and founding member of ZāZEN Properties. This emphasis on eco-conscious development aligns with MENA’s broader agenda, where $2 trillion of sustainable investment is anticipated by 2035.

A recent report reveals that "90% of UAE residents are willing to pay a premium of 2.3% for a residence that offers smart home technology features."

"The demand for sustainability is growing," Dhar explains, "and while these efforts are promising, real change extends beyond the financial contributions of these stakeholders—it also requires buy-in from all buyers in the market so that we can collectively adapt to the requirements of a greener future."

This shifting mindset is increasingly prevalent among homebuyers in Dubai.

What the off-plan surge means for Dubai

Dubai’s off-plan property sector has surged, recording a 58.7% year-on-year increase in sales in Q3 2024. Market studies indicate that 66% of tenants are planning to purchase a home in Dubai within the next six months, suggesting that demand remains robust. The city's green standards are also evolving, with certifications like LEED setting new benchmarks and sustainable projects on the rise.

Leading projects in Dubai’s green movement

ZāZEN Properties, a sustainable developer in the UAE, is leading this market shift with projects that set high standards in eco-friendly design. Their ZāZEN Gardens in Furjan, the UAE’s first LEED Gold-certified residential project, recently won the Sustainable Real Estate Project of the Year award, while other projects such as ZāZEN One in JVT have raised the bar in terms of sustainability and community-oriented design.

ZāZEN’s latest project in Al Furjan is set for completion by March 2026, continuing their mission to build premium, sustainable residential spaces in Dubai’s established communities. By blending luxury with eco-conscious standards, ZāZEN and other developers are reshaping Dubai’s real estate market.

Future of Dubai’s real estate market

With sustainability no longer just a trend but an essential requirement, Dubai’s luxury property sector is setting new standards. As demand for eco-friendly, smart-tech-equipped residences grows, the city is well-positioned to attract international interest. Dubai’s commitment to merging luxury with sustainability reflects not only a robust economy but also a forward-thinking vision that will likely shape the future of real estate across the region.

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