Renovate for advantages, says expert
Dubai, July 6, 2009
Owners of older buildings can not only improve their green credentials through redesign, but also gain market advantage in today’s tougher economic times, according to a leading architect specialising in property renovation.
“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,” said Mohamed Abdelhamied, the divisional manager design and build of Farnek Avireal, a leading regional facilities management company.
Abdelhamied, a master of science in architecture from the Swiss Federal Institute of Technology in Zurich, added: “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 per cent to 75 per cent 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 per cent increase in value.
There can be between 75 per cent and 100 per cent payback here, Abdelhamied noted. – TradeArabia News Service