Sustainable homes command a price premium in Saudi Arabia and the UAE
Homes that embrace green design principles are gaining value in the GCC’s two key economies, with buyers willing to pay around 7% more for properties with energy saving features, green spaces and resilience against extreme weather events like floods. Developers adopting sustainable building practices stand to benefit from stronger demand and healthier margins. Read what 2,400 homebuyers across Saudi Arabia and the UAE revealed about how sustainability is reshaping housing preferences in our latest survey
The big picture
In Saudi Arabia and the UAE, sustainability is no longer optional - it has matured into a baseline expectation in real estate.
Homebuyers now seek more than just walls and roofs and the latest aesthetics – they look for innovative features like energy efficiency, renewable energy, and green spaces. These elements have become differentiating factors in their purchasing decisions.
Homes that go further – with advanced eco-friendly designs – are setting the new benchmark and commanding a premium.
Consumers now want:
- Homes that perform - cutting living costs with energy efficient features lowering utility bills.
- Sustainability as a smarter investment
- Green spaces and improved air quality that promote wellbeing
Key findings from our report
Homes with sustainable features can command a 7% price premium.
Properties slow to adapt are losing around 4% of their value.
Energy-efficient homes cut utility costs and offer healthier indoor environments.
What needs to happen
- Greater access to green finance
- More affordable options for sustainable homes
- Awareness and transparency around eco-friendly choices
- Incentives for sustainable communities that reward responsible living
- Sustainability embedded in everyday living
And the result:
The creation of a housing market that is resilient, inclusive and prosperous – for people, planet and profit alike.
“Sustainability isn’t a trend. For homebuyers, it means living better and investing smarter. For developers, it’s a strategic advantage ــ and a chance to lead with purpose. They can drive innovation and scale, embed sustainability into design and operations, and strengthen capability to lead the green transition”
Sustainable homes command a price premium in Saudi Arabia and the UAE
Contact us
Dr. Yahya Anouti
Partner and Sustainability Leader, Strategy& Middle East
Dr. Fatima Koaik
Behavioural Science Lead, Ideation Center, Strategy& Middle East
Hammad Nawaz
Principal, Strategy& Middle East
Dr. Robin Schnider
Senior Behavioral Economist, Ideation Center, Strategy& Middle East
