dubai property


Climatic Change affect on UAE’s Real Estate & Construction Market

The results of climate change will directly impacts the real estate markets in UAE, as per the latest released study by the Emirates Wildlife Society. The infrastructure of UAE right now is most advanced in the GCC area which has well integrated transport system as well as assembly of iconic structures.

This year, UAE has been ranked 16th universally in world economic forum’s report of top class infrastructure and has been offered the standpoint of most attractive places from investing point of view in the region. The rising risk and flexibility put up by extreme weather conditions as well as slow phenomena’s like sea level rising can put the country’s real estate industry at risk in coming years.

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UAE has taken steps regarding this mitigation in recent years which are reflected by the establishment of ministry of federal change for climate. They remain committed to develop a country’s climate change plan.  The experts claim that an increase of 2 Celsius globally will result in rise in the sea level by 50 cm by the turn of the century.

The real estate and construction values of coastal areas  gets impacted by this rising of sea levels, and all it takes just half a degree to make quite a significant difference. UAE has 85% of the population holding coastal areas including hotels, resorts and other real estate developments situated in low lying zones.

Dubai has urban areas tripled in last two decades with artificial expansion of city surface because of Palm Islands and world archipelago projects, whereas major developments and industrial infrastructure of Abu Dhabi are also built along the islands of the emirate.

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Coastal cities are at increasing risk from sea level rise, flooding and storms. However, the implications for UAE are still not certain. The change in the climate is likely to impact the development of housing and real estate market through making the coast more costly and less secured. It also negatively affects construction time and high costs. Hot & humid weather reduces the productivity of workers and precipitation makes flood protection and structures necessary.

Most of the new buildings built in recent years were constructed with selection of materials as per the designs in less extreme weather instead of atmospheric performances which suit the region. A considerable rise in the weather would further affect the thermal performance of buildings and would also increase their consumption of water and electricity to an extent where it gets troublesome.

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