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Developers may have won some breathing space with Dubai’s new Green Building Regulations expected to be brought into law in stages rather than as a fait accompli in one go from January 1.If it were otherwise, the additional costs associated with going green would have proved extremely burdensome for developers in the present market situation.
“The Regulations are expected to be implemented in stages with a review of the standards taking place one or two years after the initial implementation, with the possibility that they will be extended to existing buildings in the future,” informs Philip Corfield-Smith, Head of the Property Department at the law firm of Pinsent Masons.
“The aim was for the Regulations to be ready by January 1 and to go before the Dubai Executive Council for approval and legislation. However, we understand the deadline may be subject to delay.”
“It is also debatable, given the current economic climate and the adverse affect that the lack of liquidity is having on developers in Dubai property market, whether the Regulations should be issued next month.
Given the importance of the Regulations, many have speculated that a delay of six months would provide time for the property market to recover and would increase their likely impact.”
The Dubai Municipality in association with Dubai Electricity and Water Authority are preparing the Green Building Regulations, intended to be compatible with the local conditions and conform to the best international design and construction standards.
It is almost a given that the regulations apply to projects that are to be launched after the decree is passed officially. Also, it may well be that projects which have already won official sanction, but are yet to start on the actual construction, could be brought under the regulatory regime.
Incidentally, some master developments such as the Waterfront already require their sub-developers to have in place a more environment-friendly building programme in place than is the norm elsewhere in the city.
However, only the actual passage of the full set of Regulations would put to rest developers’ minds on the cost factor. And recent history from another real estate market will not give them too much to cheer.
Regulations that would have a huge bearing on green buildings were passed recently in the UK, even as late as November. This is despite the fact that the property market there was slipping into a terminal decline.
“No developer in the UAE would resist any move to create sustainable development practices, it’s just that a full implementation of any such law would break the back of many developers because of the higher costs involved,” says a leading official with a local development house. “There is hardly any movement when it comes to new project announcements and it would be more difficult if the developer community is confronted with new costs at this stage.”
From the authorities’ perspective, it would not do to bring in a green building regime that is lax in its requirements and then expect them to be tightened up. The next few weeks would be quite interesting to see which way the wind blows — would they be tough stipulations or come somewhat diluted?
Corfield-Smith on his part is sure what form the legislation would take — “Whatever the content of the Regulations, it is likely that compliance will be increasingly policed as Dubai gears up to becoming a truly sustainable community.”
Fact box
Much work has also been carried out in the UAE on adapting the US Green Building Council's Leadership in Energy and Environmental Design ("LEED") rating system. The UAE LEED is anticipated to be approved by the USGBC by the end of 2008.
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