Sustainability considerations now permeate the entire property value chain

CONSTRUCTION WEEK (Middle East) – by Medea Nocentini July 09, 2024

With growing sustainability concerns and heightened scrutiny over various sectors’ contributions to climate change, the property sector’s impact is under the spotlight. As the largest asset class globally, with a market size exceeding $338 trillion in 2022, the property sector’s status quo is being re-evaluated through the lens of sustainability.

Sustainability considerations now permeate the entire property value chain, affecting designers, developers, property managers, regulators, residents, and tenants.  Currently, 43% of global carbon dioxide (CO2) emissions stem from the real estate sector, with building operations accounting for approximately 70% and construction contributing the remaining 30%.

Investors are increasingly prioritising sustainable practices, recognising both the potential value and profitability in properties managed with a focus on sustainability. Among these investors, 63% are exploring the adoption of building and IoT sensors, while 62% are investigating automated energy management as well as sustainability monitoring and reporting.

Innovative approaches to sustainability in the property sector

The sustainability shift within the property sector is compelling, driven by cutting-edge solutions in material sciences, 3D printing, water management and energy efficiency. As the third-largest contributor to CO2 emissions, the potential for a net-zero paradigm shift in property development is significant, promising climate-conscious developments that enhance efficiency and affordability.

Beyond material choices, there is a clear move towards sustainability in building amenities and central HVAC systems. Lighting and other energy-efficient systems are being integrated from the early stages of the value chain.

Initiatives like the UAE’s Al Sa’fat and Pearl rating systems, Saudi Arabia’s evolving national building codes, and the Africa Green Building Finance Initiative emphasise the need to incorporate sustainability into decision-making processes.

On the water management side, Ireland’s HT Materials Science, with Saudi Aramco as one of their clients in the GCC region, develops advanced heat transfer fluids, focusing on enhancing the efficiency of cooling and heating systems.

Their primary product, Maxwell™, is a nanofluid additive that improves thermal performance by up to 15%, leading to lower energy consumption and reduced carbon emissions.

Maxwell™ can be integrated into existing systems without significant modifications, making it suitable for a range of applications including commercial buildings and data centers.

The shift towards sustainability in the property sector is not just a response to environmental concerns but a comprehensive strategy to enhance efficiency, profitability, and affordability.

By embracing innovative materials, advanced manufacturing techniques, and energy-efficient practices, the property sector can significantly reduce its carbon footprint while meeting the growing demand for sustainable and affordable living spaces.