Homebuyers in Saudi Arabia and the UAE are willing to pay 7% more for sustainable homes: PwC Middle East survey

A new PwC Middle East survey has revealed a decisive shift in the GCC housing market, where sustainability has matured from a differentiator to a baseline expectation. Homebuyers in Saudi Arabia and the UAE are now willing to pay an average 7% premium for homes with sustainable features, while properties without them are discounted by around 4%.

Across the GCC, rapid population growth is intensifying pressure on housing supply. Saudi Arabia’s population is projected to rise from 35 million to nearly 39 million by 2030, with Riyadh expanding by 38% to 9.6 million, while the UAE’s population has surpassed 11.3 million, with Dubai exceeding 4 million for the first time in 2025. Embedding sustainable design, energy efficiency and resilient urban planning in new housing will be critical to reduce environmental impact in the region and ensure long-term livability.

The research, led by the Strategy& Middle East Ideation Centre, part of the PwC network, and titled ‘Green Pays: Sustainable homes command a price premium in Saudi Arabia and the UAE’ highlights how sustainability has become a defining factor in real estate value, buyer behaviour, and future development. As national visions in Saudi Arabia and the UAE accelerate the shift toward a low-carbon future, homes with green features are commanding both higher demand and stronger long-term value for their efficiency, resilience and future-readiness.

The research, based on the insights of more than 2,000 homebuyers, finds that willingness to pay rises further by 9.6% among those with access to green finance, indicating how financial inclusion and awareness amplify the demand for sustainable housing. The key motivations for buying sustainable homes are anchored in energy and cost savings (45%), environmental benefits (44%), and higher long-term asset value (43%).

Dr. Yahya Anouti, PwC Middle East Sustainability Leader and Partner at Strategy&, said: “We are witnessing a profound shift in how housing is perceived. Homes are evolving from structures that shelter to ones that sustain and endure. Consumers today value energy and resource efficiency features, green spaces, comfort and wellbeing, long-term financial benefits and climate resiliency to withstand extreme weather events such as flooding and rising temperatures. As rapid urban growth reshapes our cities, sustainable housing is emerging as the cornerstone of resilient, low-carbon, and liveable communities - putting quality of life at the centre and driving the region’s growth story as one of enduring and lasting progress.”

According to the report, the market has reached an inflection point: developers who integrate sustainability into their designs can command higher prices and secure stronger competitive advantage, while those who don’t risk lower valuations and weaker market relevance. The findings also underscore the growing importance of visible green badges or eco-labelling, which build buyer trust and encourage greener choices.

The report also explores the behavioural and systemic factors driving this shift. While awareness of sustainability is high, closing the “belief-to-action” gap will require accessible green finance, trusted certifications, and clear consumer education. For governments, developers, and financial institutions, the report outlines concrete pathways to accelerate adoption, from expanding green mortgage products to embedding sustainability in policy incentives and awareness campaigns.

Dr. Fatima Koaik, Director of Behavioural Economics and Impact Evaluation at Strategy& Middle East, said: “The data tells a powerful story: consumers want homes that reflect their values and aspirations. Green housing is not only an environmental choice - it’s a lifestyle and financial decision. By making sustainability visible, accessible and aspirational, we can turn awareness into action and accelerate the GCC’s journey towards climate-resilient cities.”

The report concludes that the transition to sustainable housing in the GCC is no longer a question of if, but of how fast and how far it will go. As developers, policymakers, and financial institutions align, sustainable housing can become a catalyst for the region’s housing transformation, driving progress toward a low-carbon future.