In 1950, the global population stood at approximately 2.5 billion people. There are now 8 billion people in the world, and by 2050, an estimated growth of about 20 percent will make it nearly 10 billion. Humanity has made enormous progress, but it has often been at the expense of the environment.
As the number of people on our planet rises, increased demand for essential needs such as housing will have a negative environmental impact unless solutions are adopted. LEED (Leadership in Energy and Environmental Design) projects have become one of the globally recognised solutions in real estate that allows cities, communities, and neighbourhoods to be built consciously.
In a world that revolves around profit margins, tackling global challenges like climate change and overpopulation has not always been a priority. But the tide is turning. Global initiatives like the Paris Agreement, and regional ones like UAE Net Zero 2050, have been deployed to ensure that future residents of our planet can prosper.
Moreover, the UAE has strategically laid out actionable steps to achieve this accordingly, as at last year’s COP 27 they pledged to increase their emission cuts from 23.5 percent to 31 percent to achieve an 18 percent reduction by 2030 and a 60 percent reduction by 2040. LEED developments have also been effectively contributing to positively reshaping the real estate landscape. And it is required now, more than ever before.
A symbol of sustainability achievement and leadership
The LEED certification system was developed by the US Green Building Council (USGBC) in 1993 as a rating system for designing, constructing, operating and maintaining environmentally responsible buildings. Today, it is the most widely used green building rating system in the world and rates the health, efficiency, and cost-saving of developments across four tiers:
- Certified (40-49 points)
- LEED Silver (50-59 points)
- LEED Gold (60-79 points)
- LEED Platinum (80 points and up)
Over 80,000 buildings were recognised as LEED certificated by 2015, and as of October 2022, there are now more than 100,000 projects that possess this certification around the world.
The “LEEDerboard” today
According to the USGBC, the UAE was the world’s sixth most LEED-certified country in 2021 with 73 projects spanning a total of 13,733,832.33 square feet. With the UAE government citing that 121 LEED-certified buildings rose as a byproduct of Expo 2020 – 103 of which were LEED Gold – the country is poised to climb the global leaderboard; efforts like the Dubai 2040 Urban Master Plan have mapped out a blueprint for sustainable urban development to help see this through.
For the time being, Mainland China boasts the top spot with a whopping 1,077 LEED-certified projects that span 152,325,125.75 square feet. Canada, India, Korea, and Spain round out the top five.
The rapid rise of LEED residential projects
In 2017, 1,415 LEED residential projects were registered around the world. In 2021, an additional 3,572 builds were added to the global market. During these five years, LEED residential developments increased by 152 percent, and this trend is maintaining momentum.
With buildings being responsible for almost 40 percent of global CO2, LEED-certified projects make a significant dent in minimising carbon footprint through a 34 percent reduction in emissions. Yet, more diligent efforts are needed especially when considering that experts expect emissions to be 50 percent higher this year than they were when the Industrial Revolution began.
Making eco-friendly efforts profitable
In terms of usability, green buildings are superior to ordinary buildings, but many developers have been reluctant to apply the concept to their projects. This is because high initial capital is required and the price tag is often perceived as too steep of an investment – however, this is not the case.
LEED-certified buildings are cheaper from an operational standpoint. They have proven to be long-term assets for both developers and end-users. In fact, from 2015 to 2018, LEED-certified developments saved estimated expenses of $1.2bn in energy, $149.5m in water, $715.3m in maintenance, and $54.2m in waste.
For such reasons, they command the highest rents, while lease-up rates typically range from average to 20 percent above average. Furthermore, vacancy rates for green buildings are an estimated 4 percent lower than non-green properties and this is why about 61 percent of corporate leaders believe that sustainability leads to market differentiation and improved financial performance.
LEED in the UAE
The UAE has become a global leader in many facets of the world, and sustainability is no different. By 2050, when 68 percent of the world’s population will be living in urban areas, the country is aiming to reduce its carbon footprint by 70 percent.
In real estate, UAE developers are launching LEED residential projects at a faster pace than ever before to help achieve this, led by developers like Diamond Developers and ZaZEN Properties.
One of the largest challenges for the Middle East is the amount of energy used for cooling homes. Air conditioning can represent more than 70 percent of peak residential electricity demand in the region on extremely hot days.
ZaZEN Gardens, the first residential and retail LEED Gold certified project in Al Furjan, will save more than 24 percent in annual electrical costs. Helping to combat the expected increase in global energy requirements for cooling homes, that are meant to triple by 2050.
As the UAE continues its sustainable journey, the growth of LEED developments in the country’s residential space is a welcome sign that will help the real estate sector move towards a positive contribution to the environment.