The built environment accounts for the highest share of energy use and carbon emissions, particularly in emerging economies, caused by population growth and fast urbanization. This phenomenon is further exacerbated under extreme climatic conditions such as those of the United Arab Emirates, the context of this study, where the highest energy share is consumed in buildings, mostly used in the residential sector for cooling purposes. Despite efforts to curb energy consumption through building energy efficiency measures in new construction, substantial existing building stock and construction quality are left out. Construction defects, particularly in the building envelope, are recognized to affect its thermal integrity. This paper aims, first, to detect through thermography field investigation audit construction defects bearing thermal impacts in existing and under-construction residential buildings. Then, through a qualitative analysis, we identify the resulting energy, cost, and health impacts of the identified defects. Results indicate that lack or discontinuity of insulation, thermal bridging through building elements, blockwork defects, and design change discrepancies are the recurrent building and construction defects. The qualitative review analysis indicates substantial energy loss due to lack of insulation, thermal bridging with cost and health implications, while beneficial mitigation measures include consideration of building envelope retrofitting, skilled workmanship, and the call for quality management procedures during construction.