Dubai’s residential real estate sector is seeing a new kind of competition – house owners are vying with each other to carry out the most expensive and innovative renovations in their apartments to woo ‘premium’ tenants.
Property management and rental services companies are responding to the new trend in double quick time, coming up with three special packages with repair options – minimum, business and premium, industry insiders told Arabian Business.
Business and premium packages differ in terms of more expensive, high-quality, and even exclusive furniture and appliances, creative decorative elements, and design solutions.
Industry players said the craze for expensive innovations and home staging is fast gaining currency amidst the rising market trend of more and more investors buying houses in Dubai for renting purposes to earn passive income.
“As high as over 90 percent of people who buy apartments through Colife Invest purchase it as an investment in order to rent it out and earn passive income,” Vyacheslav Kuznetsov, Head of Sales at Colife, leading Dubai-headquartered global property management and rental services company, told Arabian Business.
“Owners say that doing the usual repairs and home staging the apartment is no longer enough. In order to attract tenants, your apartment needs to stand out in the market,” Kuznetsov said.
Dubai’s push for eye-catching apartment upgrades
Senior executives at other property management firms said owners are no longer asking for standard repairs in Dubai, but for something more eye-catching and expensive.
The demand for apartment renovations in Dubai is not only rising, but taking unusual and expensive proportions. Some owners renovate apartments and do home staging after construction is completed, while many others buy apartments in the secondary housing market and want to update outdated repairs, they said.
Colife’s Kuznetsov said though there are many offers for renting apartments in Dubai, landlords want to stand out from other offerings to attract ‘premium’ tenants.
“We caught this trend and developed three special packages with repair options: minimum, business and premium,” he said.
Cost becomes secondary in hot design pursuit
Kuznetsov said that based on experience, they see that owners willingly agree to take more expensive repair packages.
Industry insiders said the rising craze for competitive property innovations are leading to a stage where house owners are ready to forego cost considerations for more trendy and eye-catching design solutions and interior furnishings.
The cost will vary depending on the number of rooms and the quality of furniture and appliances.
For instance, reasonably trendy renovations for a studio apartment are estimated to be in the range of AED 26,000 to AED 33,000, while those for two-bedroom apartments are between AED 33,000 and AED 46,000.
The Colife senior executive, however, said the reality of rental housing proves that it is a really justifiable expense.
“This is not an overpayment, but a reasonable decision of the landlords,” he said.
Kuznetsov said tenants pay attention to apartments that differ from the tons of options in the market.
“When choosing an apartment, tenants prioritize not only cost, but also comfort and style.
“It’s obvious that people choose those apartments where it’s pleasant to live and where they feel at home,” he said.
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