The Future of Real Estate Lies in 'Management': Secrets to Boosting Asset Value from the UAE Market
Introduction
When people hear "real estate," many might think of architectural design, location, or price. However, the true value of modern real estate lies in the day-to-day "management" of a property after its completion. An excellent management system elevates a mere building into a vibrant community and is key to maintaining and enhancing its asset value over the long term. This article will explain the importance of facility management, which is essential for future real estate, based on the rapidly growing example of the UAE (United Arab Emirates).
Evolving Resident Expectations: From "Space" to "Lifestyle"
The UAE's population exceeds 11 million, and with this growth, people's expectations for housing are also rising. People are no longer just looking for mere living spaces; they are seeking a lifestyle that reflects their ideals. Comfort, safety, convenience, and sustainability are becoming standard features in modern homes.
Recent surveys show that 90% of UAE residents believe a "healthy living environment is essential," and over 80% are willing to pay more to achieve it. This outcome clearly indicates that people are not seeking larger homes, but rather "better homes" that enable a higher quality of life.
What Was Once a "Luxury" Is Now a "Standard"
Concierge services, smart thermostats, and wellness facilities, once symbols of luxury properties, are now considered essential requirements in many new developments. New tower condominiums in Dubai are incorporating 24-hour security, dedicated maintenance request apps, and even rooftop solar panels, all of which are defining elements of a high-quality modern lifestyle.
Technology Reshapes the Norms of "Home"
Technological advancements are further enhancing the quality of residential environments. The UAE leads the region in smart home adoption, with approximately 80% of residents in GCC (Gulf Cooperation Council) countries already owning some form of connected device. Controlling lighting, air conditioning, and security via smartphones or voice is no longer a technology of the future but an expected feature in modern homes.
In response to this trend, developers are focusing on creating branded residences that offer hotel-like management services. These properties, complete with concierge, housekeeping, and spa services, represent a fusion of real estate and hospitality, transforming the very concept of "home."
Facility Management (FM) Takes Center Stage
Traditionally considered a background function in the real estate industry, Facility Management (FM) is now taking center stage. FM's role extends beyond simple tasks like repairing leaks or cleaning common areas. It is now required to create a comfortable "experience" where all facilities function smoothly, allowing residents to focus on their daily lives.
In an environment with excellent FM, elevators move quietly, the air is always fresh, and attention to detail is evident. Developers who understand this importance are achieving the following results:
- Securing long-term tenants
- Attracting buyers with better terms
- Building a reputation that surpasses the brilliance of new projects
Growing FM Market
Underpinning this trend, the UAE's facility management industry is projected to reach a size of $10.53 billion by 2029. This growth indicates just how essential excellent management is for maintaining and enhancing real estate value. Some leading FM companies achieve customer retention rates of over 95% and contract renewal rates close to 90%, which is not luck but a testament to trust built through daily operations.
Sustainability: The New Standard for Real Estate Value
The growing interest in sustainability has further evolved the criteria for real estate value. Environmental considerations are a national priority in the UAE, and the real estate industry is following suit. The majority of a building's total cost is incurred not during construction but during its operational lifespan after completion, making efficient management crucial for profitability and long-term value.
- LEED Certification Achievements: The UAE ranks among the top 10 globally for the number of buildings certified by the environmental performance rating system "LEED," with over 600 green projects completed. Notably, Dubai ranks third worldwide for LEED-certified buildings by city.
- Cost Efficiency: Studies show that green buildings do not necessarily have higher construction costs, and their operational costs are almost always lower.
Modern facility managers are not merely technicians; they play a crucial role in promoting sustainability. They optimize HVAC systems, track energy consumption, and manage water and electricity usage wisely, thereby balancing reduced operational costs with increased resident satisfaction.
Conclusion: The Future of Real Estate Is Not Just "Build and Done"
The UAE's real estate market has consistently attracted global attention with its grand visions and futuristic architecture. However, its next chapter focuses on "consistent care." Developers are no longer simply handing over keys; the true test of their value begins when residents start living in the property.
While excellent architecture catches the eye, excellent management captures the heart. The true future of real estate is not solely about constructing new landmarks. It lies in how well existing buildings are managed, their value sustained, and continuous joy delivered to those who live in them.
Reference: The real future of real estate lies in how we manage it - Khaleej Times