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UAE real estate shift: Sustainability and wellness redefine living

A closer look at the forces driving Sharjah’s shift toward low emission living, wellness design, and resilient property investment

Published: Wed 24 Dec 2025, 10:18 AM

A shift is moving through the UAE’s real estate sector, and it is reshaping the fundamentals of what people look for in a home. The familiar trade-offs of the past have lost their relevance. Buyers no longer accept the idea that they must choose between lifestyle, sustainability, or long term value. They want communities that deliver all three, and they expect them as standard rather than premium features. This new demand is forcing a rethink of how future neighbourhoods are imagined, financed, and built.

Sharjah has become one of the most interesting testing grounds for this shift. Its market is expanding, its investor base is international, and its development philosophy is changing at a visible pace. The growth of Sharjah Sustainable City, the early momentum behind Ajwan Khorfakkan, an off plan project, and the clear rise in demand for sustainable housing across the emirate signal a deeper transformation. This is no longer about a few pilot projects. It is a structural real estate evolution driven by both global sustainability trends and local lifestyle priorities.

This new direction is also reshaping how developers build, how architects design, and how residents experience their homes. The next generation of communities in the UAE is being built on the pillars of environmental responsibility, wellness, resilience, and long term economic value. And Sharjah today offers one of the clearest illustrations of how these elements are coming together.

New baseline for greener living

When Sharjah Sustainable City launched in 2019, it entered a market that was not yet fully aligned with the idea of large scale, low emission community living. Today, it stands as one of the region’s most successful sustainability driven real estate models.

Yousif Ahmed Al Mutawa, Chief Real Estate Officer at Shurooq, while talking to BTR, says the shift has been decisive. What was once a trade off between lifestyle, returns, and environmental responsibility has become a unified demand. “Investors and families now expect lifestyle, returns, and sustainability all in one location. ESG driven developments and low emission neighbourhoods are emerging as a new standard for quality and resilience,” he explains.

Sharjah Sustainable City spans 7.2 million square feet and has been designed as one of the lowest emission communities in the region. Every villa includes solar panels and energy efficient appliances. The community treats all its wastewater for irrigation. Utility consumption drops sharply, and carbon emissions fall with it. Resident engagement is part of the model as well, with ongoing programmes that teach families about urban farming, sustainable art, waste management and healthier living.

The community’s success continues to influence Sharjah’s planning priorities. During the International Government Communication Forum 2025, senior officials highlighted how flexible legislation, digital transformation, and sustainability standards are shaping the emirate’s modern urban strategy. Saud Abdul Aziz Al Khayal, Deputy Director of the Real Estate Regulatory Department, described Sharjah’s vision as “a unique and sustainable model, making the emirate a global investment destination that combines housing, work, and stability.”

His comments were backed by numbers. In the first half of 2025, Sharjah recorded more than 6,600 investors from 109 nationalities. Real estate transactions exceeded Dh27 billion during that period. Interest is not only strong but increasingly international.

Sharjah Sustainable City, which spans across four phases, consists of about 1,250 villas, most of them sold out and already handed over to residents across all phases, with Phase 4 handovers currently underway. The community has dedicated a significant portion of its area to green spaces featuring native trees that help promote and enhance local biodiversity.

Engineer Abdullah Mahmoud Salem from the Department of Housing discussed how new construction standards are reducing environmental impact. Green concrete is now used across all departmental housing projects, lowering the carbon footprint of building materials. He noted that this approach has produced a 30 percent reduction in energy consumption and an 80 percent reduction in carbon emissions, along with measurable health benefits for residents.

Salem added that sustainability today goes beyond energy and emissions. It includes modern architectural design, indoor air quality, safety technologies such as early fire warning systems, and constant public awareness.

The result is a clear message. Sharjah is not experimenting with sustainability. It is institutionalising it.

Inside the community

Sharjah Sustainable City is often discussed in terms of performance indicators. Solar capacity. Emissions reduction. Green space. But its deeper impact lies in how it reshapes daily life.

The neighbourhood encourages walking and cycling through shaded pathways and wide pedestrian corridors. Children can move freely between parks and play areas without the constant presence of cars. Residents have access to gardens, community farms, and social spaces designed around natural light and ventilation.

The development also includes a Sustainability Experience Centre that educates visitors and families on renewable energy, recycling, and responsible consumption. This is not an add on. It is part of the ethos. Homes are built with double glazed windows, advanced insulation, and materials that regulate indoor temperature without heavy reliance on air conditioning.

The architecture favours natural lighting, which reduces energy use and strengthens the feeling of openness. This combination of technology, spatial planning, and behavioural design shows how sustainability can enhance, rather than complicate, modern living.

Rise of wellness driven coastal living

If Sharjah Sustainable City represents the evolution of the region’s environmental priorities, Ajwan Khorfakkan reflects a parallel shift toward wellness and nature focused living.

Ajwan is the first residential development of its kind on Khorfakkan beach. Its location is its greatest asset. Residents wake up to either the Gulf of Oman or the dramatic mountain range that frames the coastline. It represents three major lifestyle trends that are shaping real estate demand across the UAE. Waterfront communities are rising in popularity. Wellness is becoming a core expectation. And homes increasingly serve dual roles as primary residences and retreat spaces.

The development covers 89,100 square metres, with six buildings and 185 apartments. The wider master plan includes a beach, a promenade, hospitality offerings, a marina, and retail experiences. Every component is designed to bring residents closer to the outdoors. Shaded walking paths, pools, play areas, and open spaces turn the community into a year round activity zone.

Since launch, Ajwan has recorded strong sales, signalling a clear transition. Khorfakkan is no longer only a weekend getaway. It is becoming a permanent living destination.

For Shurooq, this project is more than a beachfront development. It is a blueprint for how wellness, open space, and coastal ecology can shape future communities. As Al Mutawa notes, Ajwan is intended to harmonise with its landscape, not stand apart from it.

Demand for sustainable real estate

Developers are not the only ones steering this shift. Buyers and tenants are pushing the market forward. Recent reports from Dubai and Sharjah show that demand for sustainable residential units has grown by more than 40 percent since the start of 2025.

According to Ahmed Obaid Al Qaseer of Shurooq, the rise is fuelled by more supply, better awareness, and stronger long term confidence. He noted that demand now exceeds pre pandemic levels and that the appetite for sustainable homes is prompting further phases of existing projects. Water recycling, solar integration, larger green spaces, energy efficient appliances, and low emission building materials are becoming the baseline expectations for new communities.

Real estate expert Ismail Al Hosani confirms the trend. He points out that sustainable units often sit within the high quality segment of the market, which strengthens demand even more. Buyers recognise the financial value of energy and water savings. They also understand that sustainable communities tend to age better and maintain stronger occupancy.

Sufian Al Salamat, Executive Director at Al Soum Real Estate, sees growth of up to 50 percent across Sharjah and Dubai. He expects developers to accelerate the launch of sustainable projects to catch up with demand. He highlights the role of thermal insulation, heat resistant glass, energy efficient appliances, recycled materials, and extensive landscaping as the core attributes driving consumer interest.

Mohammed bin Issa from Sharjah Asset Management also confirms significant demand, noting that solar powered units and communities with large green spaces are performing especially well. The increase now exceeds both last year’s figures and pre pandemic levels.

This alignment of developer strategy and consumer behaviour is a major reason why sustainability is no longer seen as a premium add on. It is becoming the foundation of next generation real estate.

A strategy built on performance, wellbeing, and long term value

Shurooq’s residential strategy reflects the wider market transformation. The organisation focuses on three priorities: performance led sustainability, health and community by design, and long term, place based value.

Performance led sustainability means that developments must deliver measurable gains in water, energy, and emissions. It moves sustainability from intention to accountability.

Health and community by design prioritises human scale public realms, walkable masterplans, and social infrastructure that encourages interaction.

The third pillar, long term value, is where these elements converge. Communities built around sustainability and wellness tend to be more resilient to market cycles. They attract a broader investor base, retain residents longer, and support Sharjah’s economic diversification.

The numbers reinforce this direction. According to the Real Estate Registration Department, Sharjah recorded Dh44.3 billion in property transactions in the first nine months of 2025. That marks a 58.3 percent increase compared to the same period in 2024. It also shows how strongly the market is responding to new lifestyle and sustainability driven developments.

The future of living in Sharjah

Sharjah today is not only building communities. It is redefining how communities should function. It is shifting away from car dependent layouts, energy heavy buildings, and isolated urban pockets.
Instead, it is producing models for healthier, cleaner, and more socially connected living.

Sharjah Sustainable City shows what a low emission, education focused, community oriented neighbourhood can look like. Ajwan Khorfakkan demonstrates how wellness, coastal living, and active outdoor design can coexist in a modern residential project. Government led sustainability standards ensure that innovation is not limited to a handful of developers but embedded in housing policy.

The demand figures confirm that residents want these changes and are willing to invest in them. The investor numbers show that the emirate’s approach is attracting global attention. The rising value of sustainable real estate suggests long term economic resilience.

The evolution of next generation communities in Sharjah is not driven by one project or one philosophy. It is driven by a clear public appetite for better living, a strategic government framework, and developers who are willing to build communities that reflect the future rather than the past. Sustainability and wellness are no longer design trends. They are now determinants of real estate success. And in Sharjah, they are becoming the foundations of a new way of living.