The Rise of the UAE’s Renovation Economy (By Stefan Schmied, Leader IMEA, LIXIL International)
A quiet transformation is reshaping homes across the UAE. The country’s property sector, long defined by rapid growth and new developments, is entering a new era, one centred on renovation, retrofitting, and responsible design. The home renovation market, valued at around USD 32.4 billion in 2024, is projected to reach USD 42.6 billion by 2030, growing at a steady rate of 4.7 percent per year (PS Market Research, 2025). This growth reflects a shift in mindset, as homeowners and investors move beyond aesthetics and location to focus on performance, sustainability, and smart functionality.
This “renovation economy” aligns perfectly with the UAE’s long-term sustainability goals. National initiatives such as the UAE Net Zero 2050 Strategy and the Dubai Clean Energy Strategy 2030, which aims for a 25 percent share of clean energy by 2030 (DEWA, 2024), have created strong incentives for greater efficiency across all sectors, including housing. Until recently, most renovations in Dubai or Abu Dhabi were aesthetic, new marble, lighting, or cabinetry. Today, the motivation runs deeper. Homeowners are asking how to reduce their water and energy use while maintaining comfort and design quality.
The environmental stakes are significant. The UAE consumes roughly 9 billion cubic metres of freshwater annually, and desalination, which provides most of the country’s supply, requires about 25 terawatt hours of electricity each year (MDPI Sustainability Journal, 2024). Every litre saved lower both carbon emissions and costs. The market for efficient fixtures and smart systems is expanding quickly. Modern flow regulators and aerators can reduce water consumption by up to 50 percent without affecting pressure, while cold-start mixers eliminate unnecessary heating. Over time, a single household can save tens of thousands of litres, a meaningful difference in a desert climate.
Digitalisation is accelerating this change. Smart thermostats, motion-sensing lights, and leak-detection systems have become standard features in many mid- to high-end renovations. What began as a luxury is now mainstream, because the benefits are immediate: control, visibility, and lower utility bills. These advances align with the UAE’s smart-city agenda. As urban infrastructure becomes increasingly connected, households are embracing the same technologies. A home that learns user habits, monitors consumption, and prevents waste is fast becoming the new standard for modern living.
The country’s design scene is evolving in parallel. Architects and interior designers are embracing natural materials, minimalist layouts, and energy-efficient lighting to reduce cooling demand and create calm, sustainable spaces. Sustainability has become a design language in itself, one that conveys modernity and responsibility in equal measure. Regulatory initiatives reinforce this direction. Sustainability and liveability are core pillars of Dubai’s 2040 Urban Master Plan, while Abu Dhabi’s Department of Energy recommends reducing electricity consumption by 22 percent by 2030 (DoE, 2024). What was once aspirational is now an operational standard; every renovation permit and material specification carry an environmental responsibility.
The strength of this new renovation wave lies in collaboration. Policymakers, architects, developers, and technology providers are working together to embed sustainability into every phase of the home’s lifecycle, from planning and specification to installation and education. At LIXIL, we see this shift as part of a broader regional movement. Through the GROHE brand, we support homeowners and professionals with water-efficient and intelligent fittings that combine design, performance, and sustainability. By aligning global expertise with local codes, the private sector can help accelerate progress toward national targets without compromising comfort or aesthetics.
Partnerships with educational institutions and industry bodies are equally important in preparing the next generation of skilled installers and designers who understand that smart design is sustainable design. The next phase of the UAE’s property evolution will be defined not by how many buildings are built, but by how existing spaces are adapted. Renovation has become the bridge between luxury and longevity, ambition and accountability. As the UAE moves closer to its Net Zero 2050 goals, every efficient fitting, smart sensor, and intentional design decision contributes to a collective purpose. The renovation economy is no longer a secondary narrative; it is central to how the UAE is building its sustainable future.
