Will higher rating mean higher rents?

Dubai: Dubai residents living in buildings with higher ratings in green building standards will have better comforts and slashed electricity bills. However, they may end up paying higher rents, Gulf News has learnt.

Homes furnished with recycled materials, having more ventilation, better natural lighting, cooler parking areas and reduced electricity bills — these are some of the major benefits projected for occupants of green buildings.

However, an increase in five per cent of investment is estimated for achieving the mandatory bronze category rating in the newly announced Al Safat green building rating system. The higher the rating aimed at, the more the investment required.

Though the municipality has not announced any incentives to encourage developers to go for higher ratings, the civic body is encouraging them to use their ratings as a new marketing tool since the comfort level and savings in electricity bills will be higher in such properties, according to Essa Al Haj Al Maidour, the Deputy Director-General of Dubai Municipality.

     The future is green

Another official said the civic body will be consulting the RERA, the Real Estate Regulatory Agency, to implement a green building rating-based system for rents.

“We are working now to put a limit for rent for each category,” said Ahmad Saeed Al Badwawi, head of research and building material studies at the Building Department.

He confirmed that the plan is to allow buildings with higher ratings to take more rents. “….because they have a lot of saving in energy bills”.

If the electricity bill is Dh1,000 per month for a consumer in a silver-rated apartment, it will be half of it for an occupant of a platinum-rated apartment, he justified.

Source: Sajila Saseendran, Senior Reporter, gulfnews.comGN


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