Friday, Jul 11, 2008
Gulf News
The 'wow' factor of recent developments seems to have shifted to the actual aesthetics of the buildings. But have the fundamentals of developments followed suit?
Over the past few weeks, property enthusiasts have been treated to some particularly interesting and creative developments. Last week it was the 'Rotating Skyscraper' and this week we were treated to the launch of a tower that takes the shape of patterned sea waves. One might wonder what is next.
With the real estate boom and the competition to develop more and exciting projects, the UAE is attracting architects from all over the world with great concepts and designs. We will continue to see new concepts, new designs and ideas continually challenging engineering. The UAE has been a breeding ground for new initiatives with each developer wanting to be bigger, better and stronger than the next. It is not need, but desire.
This is not an entirely new concept, as we have seen with previous projects. Developers continue finding ways to distinguish their developments..
So how is this different from a subject I touched upon last week: celebrity endorsements? Well, developers are not only tying sports stars to the building but, in addition, we are seeing the use of the aesthetic aspect of the building as the primary sales tool. They are creating additional value based on a property's physical presentation.
But behind the aesthetics, many of these developments offer similar amenities and facilities. It is the design and prestige of the actual building that adds the 'wow' factor.
Burj Dubai is a great example. While its value is slowly becoming incomprehensible, the development itself is still encouraging enough for people to sign on the dotted line. These buildings are cutting across what may be seen by some as a rather cluttered real estate market.
Ultimately, whether you are an investor or a homeowner, you have to ask yourself a couple of questions. A building may be the tallest, wave-like, or rotating, but will the return on investment be healthy? Furthermore, will it offer homeowners a comfortable place to live? These questions can only be answered through due diligence. Even if it is a speculative purchase, there is a higher degree of risk in the investment if the product does not meet these specifics.
When buying into a product valued largely on the aesthetic, the purchaser must not be swayed purely by its visual attractiveness. The entire project must be studied and, in doing so, one would naturally take into consideration the quality of construction and finishing. The importance of efficiency and usability of the product cannot be overestimated. Obviously the location, pricing, and payment plan seem to be the first considerations but down the road they may become secondary or even irrelevant. When the time comes to sell to end-users, priorities change. Emphasis on these aspects not only adds longevity to a building's appeal but it also gives the project more of an end-user orientated product.
Essentially, buyers need to look for the long-term benefits of a project.
The writer is managing director of Better Homes.
Gulf News 2008. All rights reserved.
