If you enter any villa community right now, there are construction projects happening on every street. It’s fair to say that we are currently experiencing a ‘Renovation Boom’ across the city, and I am loving every minute of it!
But how can you make the best out of your property renovation in Dubai? That’s what Aron Lomax, the Co-founder of Treo Homes, will take you through in this quick guide.
- Property Renovations in Dubai’s Evolving Market
- Importance of Strategic Renovation
- Other Factors to Consider
Property Renovations in Dubai’s Evolving Market
Construction is common worldwide, but it’s fairly new in Dubai. Why? The quick answer: Property Stock Age.
Most buildings in Dubai are less than 20 years old, so there hasn’t been much need for renovations. However, as Dubai’s market grows, both property owners and investors are seeing a growing need to update infrastructure and amenities to stay competitive and meet modern standards.
I hold a particular fondness for older, more mature communities, yet I am equally passionate about adding value and enhancing properties. In this article, I will delve into all the essential factors to consider when undertaking a property renovation in Dubai.
Importance of Strategic Renovation
Whether you’re an end-user looking to turn your property into your dream home or renovating for investment purposes, remember that each modification should enhance the property’s value and resonate with the demographic of the community.
Adopting this perspective helps you strategically plan out your renovations. Now, let’s explore several key considerations based on your renovation objectives:
End Users
When renovating their personal property, many of our clients tend to focus on immediate desires and needs without considering the property’s future resale potential.
While this approach is completely fine for those planning to reside in the property for an extended period, it’s important to recognise Dubai’s transient nature and the possibility of circumstances changing.
With that in mind, in many cases, when I see people do overly niche and personalized modifications, this ends up actually.
- Diminishing a property’s value
- Limiting its appeal to potential buyers who are not seeking extensive projects.
This narrows the pool of potential end-users significantly. It’s very important to keep a balance between what you want and what will help the resale value of your property in the long run.
Long Term Rental
Renovating a property for a long-term lease is a common and lucrative investment strategy, especially in a transient market such as Dubai’s real estate. When renovating for tenants, you should consider:
- Budget
It’s easy to get carried away, but it’s important to remember that this is an investment and not your personal residence.
Work out exactly how much your property will be worth once renovated. This will provide a benchmark to ensure that you are still gaining equity in the finished property.
I like to use a straightforward approach: If your property’s value is expected to rise by 30-40% after renovation, then your renovation budget should not exceed 50% of that projected increase.
Aron Lomax, the Co-founder of Treo Homes
For instance, if your property is currently valued at AED 2,000,000 and you estimate its value will increase by 30% to AED 2,600,000 after renovation, your renovation budget should ideally stay within AED 300,000.
- Quality
It’s important to
- Carefully consider your selection of materials and recognize that the property may not receive the same level of care as your personal residence.
- Opt for durable and hard-wearing materials, particularly when selecting MEP (Mechanical Electrical Plumbing) items.
- Go for services and products that have the longest warranty period and the most accessible service centers to ensure that your renovations are covered if anything goes awry.
- Appeal
Finally, the style and finish are extremely important. I see too many examples of owners renovating properties to their taste, which limits their potential rental options and hinders the rental valuation. Keep it clean, neutral, and fresh to appeal to the most people.
Short Term Rental
When it comes to short-term rentals, keeping things neutral is key. Guests appreciate a space that feels welcoming and adaptable to their preferences.
Here are some tips for renovating a property with short-term rentals in mind:
Durable Finishings
With the unpredictable nature of short-term rentals,
- Choose options that are strong enough to withstand this.
- Consider materials like scratch-resistant flooring, stain-resistant countertops, and easy-to-clean surfaces.
Keep it Universal
- Go for options that are typically timeless and have universal appeal. While it’s essential to prioritize durability, don’t overlook the importance of aesthetics.
- Neutral color schemes and timeless designs can help create a welcoming atmosphere for guests.
Views Sell
It’s true what they say – you cannot renovate a view. If your property boasts stunning views of the city skyline or the ocean, capitalize on this selling point.
Enhance outdoor spaces like balconies or terraces to create an inviting space for guests to soak in the scenery, and most importantly, make sure that any renovation you do won’t compromise the view.
Appliances and Homely Touches
Go the extra mile with appliances and homely touches to elevate the guest experience.
- Invest in high-quality appliances that are both functional and stylish.
- Consider adding thoughtful amenities such as plush towels, premium bedding, and a well-equipped kitchen to make guests feel at home during their stay.
Location, Location, Location
Just like views, you cannot change the location of your property. Highlight the unique features and attractions of your neighborhood to attract guests.
Other Factors to Consider
There are additional factors that you can also consider while planning to renovate your property in Dubai.
Selecting the Right Community
Selecting the right community is the single most important factor in successfully adding equity to your property in Dubai. Typically speaking, the older, more mature communities are in the perfect life span and are prime for renovation.
Examples of these communities include
- Jumeirah Golf Estates
- Arabian Ranches
- Emirates Living
- Palm Jumeirah
- Dubai Marina.
The ideal scenario is a community that is 10+ years old, yet still has new developments under construction. In such cases, developers will be selling at a premium and allow you to have a benchmark Price Per Square Foot that you can work towards when planning your property renovation in Dubai.
A prime example of this is Dubai Marina. Known for its iconic skyline, vibrant waterfront lifestyle, and world-class amenities, Dubai Marina attracts residents and investors from around the globe.
Choosing a community like Dubai Marina provides not only a desirable living environment but also a strong potential for long-term appreciation and return on investment.
Picking the Right Contractor
Choosing a reliable and experienced contractor is essential to ensuring the success of your property renovation in Dubai.
- Look for contractors with a proven track record of delivering high-quality work within budget and on schedule.
- Check references, review past projects, and ensure they are licensed and insured to work in Dubai.
Importance of a Strong Agent
A knowledgeable and experienced real estate agent can provide invaluable guidance and support throughout the renovation process.
From assisting with property selection to negotiating contracts and managing approvals, a strong agent can streamline the renovation process and help you achieve your investment goals.
Approvals and Developer NOCs
Before undertaking any renovation work, it’s crucial to obtain the necessary approvals and permissions from relevant authorities and developers.
This includes obtaining
- NOCs (No Objection Certificates) from the property developer,
- As well as securing permits from local authorities for any structural or aesthetic changes.
Working with a reputable agent and contractor can help navigate the approval process and ensure compliance with regulations.
Let’s Wrap it Up
As we navigate through this renovation boom in Dubai, it’s clear that strategic renovation has become more vital than ever.
Whether you’re an investor seeking to maximize returns or an end-user aiming to create your dream home, careful consideration of every aspect of the property renovation process in Dubai is essential.
Every decision plays a crucial role in the success of your renovation project, including.
- Selecting the right community
- Choosing durable materials
- Engaging a reliable contractor
- Obtaining necessary approvals
- Working with a strong agent who understands the local market dynamics can provide invaluable support and guidance, ensuring a smooth and profitable renovation journey.
In a city as dynamic as Dubai, where real estate trends evolve rapidly, it’s essential to keep an eye on the future resale value of your property.
Balancing personal preferences with market demands ensures that your renovated property in Dubai remains attractive to a wide range of potential buyers, maximizing its long-term equity and investment potential.
Aron Lomax, Co-founder of Treo Homes
He is a multifaceted leader in the UAE real estate industry with a wealth of experience spanning over a decade. He is a Co-Founder and Managing Partner of the multi-award winning brokerage Treo Homes and eMortgage, alongside his pivotal role as an Advisory Board Member for one of UAE’s premier property portals. With his expertise in the international property market, Aron has steered the direction of esteemed developers and agencies in the region, shaping marketing strategies, master plans, and target demographics.
Aron’s leadership at Treo Homes has garnered prestigious accolades, such as ‘Best Newcomer Agency,’ ‘2020 Agency of the Year,’ and recognition as ‘Dubai’s Best Boutique Brokerage.’ His initiatives not only solidified Treo Homes’ position as an industry leader but also earned additional awards through the years, including the ‘2021 Best Boutique Brokerage’ and ‘2023 Quality Brokerage of the Year.’
