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 reevaluated 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.

Sustainable materials

The global focus on material science is enabling a paradigm shift within property design, prioritising sustainability and structural integrity. This shift is driven by the environmental impact, cost-effectiveness, and sustainable practices of new materials.

Smart materials like self-healing concrete and climate-responsive smart glass, which modulates opacity to control light and heat, reduce emissions and capital expenditures throughout a building’s life cycle.

Innovators such as US-based Biomason and Partanna are addressing the major carbon footprint of traditional cement, which accounts for 8% of global CO2 emissions. Biomason uses biological production platforms to create concrete materials by blending aggregates with bacteria, nutrients, calcium, and carbon sources, while Partanna uses recycled materials like brine and slag, avoiding the high energy and emissions of traditional concrete production.

Regionally, startups like TileGreen in Egypt are using plastic waste to create carbon-neutral alternatives to concrete. Embracing sustainable materials can make properties more affordable, especially in regions like Sub-Saharan Africa, where green buildings, despite a 2% higher initial investment, offer long-term operational cost savings of 16%.

Switzerland-based 14Trees, backed by Lafarge Holcim, is constructing 3D printed houses and schools in Malawi and Kenya in record time — less than 18 hours — and selling them at an affordable price point of $27,000. 14Trees aims to drive down construction costs further with each phase of the initiative.

Additive manufacturing and 3D printing

Advancements in material sciences have led to significant progress in additive manufacturing and 3D printing. These methods allow for efficient prototyping, detailed scale modeling, and design visualisation, offering practical benefits in cost and efficiency.

Despite high initial costs, parts made with additive manufacturing use up to 90% less raw material and are expected to become more affordable as more materials become available.

Products created through 3D printing serve as tangible representations, fostering improved interaction and understanding in the design and construction process.

Additive manufacturing streamlines supply chains, minimising waste and delays during the design phase and promoting enhanced security and reliability by relocating manufacturing closer to the end user.

Regional players like Immensa, currently innovating in additive manufacturing within the energy sector, can also leverage their expertise and technologies to optimise the building process by efficiently replacing parts in heavy machinery.

Similarly, Oman-based Innotech offers 3D prototyping and manufacturing services spanning various sectors, including engineering and design.

Moving beyond process enhancement, companies such as Mighty Buildings in the US, supported by regional investors such as Saudi Aramco’s Wa’ed Ventures and Khosla Ventures, leverage 3D technologies and sustainable materials to manufacture prefabricated low-carbon structures.

These structures encompass a variety of components, including panels, insulation, and steel frames, offering versatile assembly options on-site.

Energy efficiency, water management and green buildings

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.

Regional players like UAE-based Taka Solutions are introducing comprehensive energy management ecosystems. Their Cooling-as-a-Service (CaaS) model reduces chiller costs across plants, while innovative financing solutions for retrofitting or new construction projects help achieve energy efficiency.

Taka Solutions’ portfolio has saved 100,000 MWh and helped clients achieve more than $12 million in energy cost savings, proving that sustainability aligns with both environmental goals and economic benefits.

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.

Their product 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.

To learn more, check Global Ventures’ proptech report.

This article was co-authored alongside Lana Azhari and Ramzy Osman and published in Construction Week Middle East.

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