Renovate to accumulate landlords told

Renovate to accumulate landlords told
Leading UAE facilities management company provides cost-effective, energy-saving redesign to make older buildings leaner, meaner and greener
Owners of older buildings can not only improve their green credentials but also gain market advantage in today’s tougher economic times, according to a leading architect specialising in property renovation.
Mohamed Abdelhamied, the Divisional Manager Design and Build of Farnek Avireal, a leading regional facilities management company, commented, “With competition for business likely to remain fierce in both the commercial and residential property sector for the foreseeable future, owners of older buildings will find themselves at a commercial disadvantage if they don’t consider renovation.”
Abdelhamied, a Master of Science in Architecture from the Swiss Federal Institute of Technology in Zurich, went on to say, “Professional renovation of an older building, carried out using environmentally friendly products and incorporating the latest energy saving technologies can make a dramatic impact on the building’s ‘carbon footprint’.”
“Apart from improving a company’s green credentials, well-renovated buildings - whether they are hotels, offices, apartment or villas – are also more desirable for tenants and capable of sustaining higher returns. Owners must renovate to accumulate,” he added.
In general, there are three types of renovation: lifestyle, retrofit, and maintenance and repair, Abdelhamied explained.  Maintenance and repair protects the investment made in buildings such as carpets, flooring and bathroom fittings. This can maintain the property’s asset value and reduce depreciation – with typically 50% to 75% payback.
Retrofit projects usually focus on a building’s shell or mechanical systems. Examples are upgrading insulation, air conditioning and replacing kitchens. This can help landlords to either sell or rent their buildings with more added value with up to 30% increase in value. There can be between 75% and 100% payback here.
Lifestyle renovations improve buildings and way of life. They might involve an extra room or converting unused space into living quarters. Almost any renovation will add to, or at least protect, the equity in a building but kitchen and bathroom renovations and painting normally provide the greatest payback.
“Improving the life cycle of buildings is a speciality of ours,” Abdelhamied added. “Out company, which maintains over 1,000 properties in Dubai alone, has been involved in a number of major renovation projects as owners look to maximise their returns and protect their long-term investment. A recent example was a 54 villa estate where the buildings are more than 20 years old. They are now not only more efficient but also more desirable.
“Over time, the money saved on things such as more efficient air conditioning, light and water may actually pay for the upgrades. Safety also pays. Insurance companies may decrease premiums when wiring or fire prevention has been improved or a security system is added.
“In tougher economic climate ensuring buildings are efficient and desirable can keep companies ahead of the competition,” Abdelhamied said.