Unlocking Sustainable Futures: The Role of Circular Economy in UAE Commercial Real Estate

Introduction

Decarbonising cities poses a formidable challenge that extends beyond merely reducing carbon emissions from building operations. Cities dedicated to ambitious net-zero goals are adopting holistic approaches, redefining the entire lifecycle of buildings – from construction to maintenance and eventual demolition. This paradigm shift is crucial, especially considering the global construction industry's position as the largest contributor to waste, with construction and demolition waste accounting for one-third of the world's total waste.

Defining the Circular Economy

The Circular Economy represents a departure from the linear model of take-make-consume-throw away. It emphasises the principles of sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products. This model seeks to extend the lifecycle of products, minimising waste and prioritising the preservation of asset value. In contrast to the linear model, which relies on abundant, cheap materials and energy, the circular economy adopts a holistic view that considers whole-life emissions – spanning from material production to disposal.

Application in UAE’s Commercial Real Estate

In the context of the UAE, where 80 percent of commercial buildings projected for use in 2050 already exist, meeting future carbon reduction targets demands innovative solutions. Rather than opting for the demolition of older structures, a circular economy approach advocates for retrofitting, strategically leveraging spent carbon efficiently. Circular principles in the built environment involve meticulous design to eliminate waste and pollution, sustained use of products and materials and active regeneration of the environment during both building and operational phases.

Unrealised Circular Value in UAE’s Commercial Real Estate

The burgeoning real estate markets in the UAE offer fertile ground for transitioning to a circular model. Visionary leaders in design, engineering, and asset management, supported by robust urban and environmental policies, are pivotal in spearheading this transition. The circular economy holds the key to sustainable development, aligning economic growth with environmental stewardship.

Two-Fold Approach to Achieve Circularity in the UAE

1. Optimising Resources: Prioritise resource efficiency in creating the built environment.
2. Maximising Potential: Enhance the adaptability and usage potential of land and existing structures. The principle of reuse extends beyond decarbonisation efforts, addressing evolving work patterns and social dynamics. Its objective is to maximise the long-term value of assets and facilitate efficient building stock management.

Circular Regulatory Impact

Cities with regulations promoting considerations of whole-life carbon and building adaptability experience quicker adoption of circular principles, facilitating a smoother transition to sustainable practices. Several sources of value within the UAE's real estate sector remain unrealised, including underutilised space, premature demolition, single-use occupancy regulations, land vacancy, and material depreciation. Addressing these issues is vital for unlocking the true potential of a circular economy.

Global Trends and Collaborative Shift

Globally, commercial real estate companies are maturing by embracing innovative, sustainable solutions. These include the use of recycled materials, renewable energy sources and initiatives promoting human health and wellness. The transition to a circular built environment in the UAE necessitates a collaborative shift in roles and business models across stakeholders, effectively navigating dependencies on government institutions, financial entities, supply chains and the construction sector.

Conclusion

The circular economy in commercial real estate represents more than just a solution; it signifies a pathway to unlocking sustainable futures. The UAE's journey towards a circular model demands a comprehensive shift in mindset, innovative business practices, and collaborative efforts. This transformative approach not only promises to achieve net-zero goals but also aims to create resilient, adaptive, and value-rich urban spaces for the future. Through this, the UAE can position itself as a global leader in sustainable urban development.

At CRC, our team of dedicated experts is committed to assisting clients in navigating the complexities of sustainable development. We provide tailored solutions that align with your unique goals and values.

For personalised guidance in the realm of sustainable development in commercial real estate, feel free to reach out to me at [email protected] or via phone at +971-561053947.