In 2024, the total number of real estate transactions reached a record 180,987, a 36.5% increase from 2023. View UAE pricing history here.
Today, we are witnessing a surge in UAE’s real estate market, especially with secondary property investments. Buyers are shifting focus from new developments to pre-owned homes.
This is a strategic move because renovating an older home offers a cost-effective way to customise and enhance property value. In fact, when done right, it can yield higher returns than buying a new home.
In this article, we explore why renovation is emerging as an important investment strategy and how it is reshaping the UAE’s property market.
Why Renovation is the New Investment Strategy
Cost-Effectiveness
You can buy older properties at a lower price and invest in upgrades to enhance their value. Also, with renovations, you have leeway to control expenses and can avoid surprise fees and costs that often accompany new development.
Higher Return On Investment (ROI)
Renovated secondary properties increase in value due to quality upgrades. As an investor, you can resell renovated older homes for significantly more than unrenovated houses in the same area, providing a higher ROI.
Increased Rental Yields
If you are planning to rent out the property, renovations can be a smart move, as a well-maintained and renovated property commands higher rental yields compared with outdated homes.
Tenants today prefer well-maintained spaces with modern amenities.
A study on Dubai’s ‘The Springs’ community found that interior design upgrades, particularly in kitchens and bathrooms, accounted for 66.2% of renovation decisions. Additionally, renovated properties in Dubai can command 20–30% higher rents.
Customisation
One of the main advantages of renovation is the freedom to customise a property according to your preferences or market demands.
While new developments focus on standardised finishes, renovation offers an opportunity to tailor properties with high-end materials, smart home features and unique designs.
It can increase marketability and ensure that your property stands out. Customisation also lets you incorporate sustainable upgrades to align with eco-conscious buyers and tenants.
Reduced Waiting Time
New developments take time. And if there are delays in approvals and permits, the timeframe gets stretched. But with renovation, the turnaround is faster.
Buyers can acquire a secondary property and renovate it within months if they have the right team.
This reduced waiting time is particularly beneficial in high-demand areas where immediate occupancy is a priority.
Final Thoughts
Renovation has become a strategic move in Dubai’s real estate market. But to make sure it brings all the advantages mentioned earlier, you need a robust team to support your endeavours.
With BLD.Market by your side, you don’t have to worry.
BLD.Market is an e-marketplace where you can connect with Project Manager Consultants and other industry experts for high-quality renovations.
Whether you want to enhance the aesthetics of your home, optimise space for rentals or improve energy efficiency, BLD.Market makes all your renovation ideas a possibility.
All you have to do is get in touch with us today to get started.
Realising your renovation vision is just one click away!