Building your dream home vs renovating an existing property: What’s the right move?

Be aware of regulations

Whichever path you opt for, it’s important to know that Dubai’s building regulations are governed by the Dubai Municipality and the Real Estate Regulatory Agency (RERA).

For building a property from scratch, investors need to obtain several permits, including land use approval, building permits, and environmental clearances. Adhering to zoning laws, construction codes, and sustainability requirements is crucial.

For renovating an existing property, approval from the Dubai Municipality is necessary, especially for structural changes. Renovations must comply with safety standards and building codes – plus any individual developer stipulations. Homeowners in gated communities or freehold areas may also need approval from the relevant community management.

The ‘new build’ route

Building property from scratch on purchased land offers numerous benefits for real estate investors. It allows for complete customisation, ensuring the property meets specific needs and preferences, thereby enhancing its market value and rental appeal.

Investors can incorporate the latest design trends and sustainable practices, potentially reducing future maintenance costs. Additionally, new constructions often have fewer repair issues and come with warranties, providing peace of mind. Building from scratch also enables investors to strategically choose Dubai locations with high growth potential, maximising long-term returns. This approach can ultimately yield a more desirable and profitable investment property, though the construction cost for a residential building may be higher than that of a renovation project.

Or, renovating an existing property

On the flipside, purchasing an existing property and renovating it extensively can cause significant cost savings. Older properties in prime locations may be priced more competitively, providing an opportunity to invest the difference in a high-quality renovation that aligns with Dubai’s stringent standards and helps manage the building renovation cost.

Renovating also allows for complete personalisation. You can redesign the layout, select every material, and incorporate unique features that reflect your individual style. This level of customisation can result in a one-of-a-kind home that stands out in Dubai’s competitive market.

Whatever you choose, get professional help

Having an established Property Management Consultant on your side can help you navigate your choice in line with your budget and timeline – including picking the most skilled and experienced contractors to deliver you vision and handling property management coordination throughout the entire process.

Frequently Asked Questions

What should I expect in terms of building renovation costs?

Building renovation costs vary based on the extent of the renovation, the condition of the existing structure, and the materials chosen. While renovating can be more cost-effective than new construction, major structural changes can add to the expense. Consulting with a project manager can help ensure your renovation stays on budget.

How does property management coordination help in a renovation or new construction project?

Property management coordination ensures smooth communication between contractors, vendors, and relevant authorities. It also helps manage timelines and permits, ensuring that your project adheres to Dubai’s regulations and stays on schedule, whether you’re building from scratch or renovating.

Are there cost advantages to remodelling and construction versus building a new home?

Yes, there can be significant cost savings in remodelling and construction compared to starting a new build. Older properties in prime locations are often more affordable, allowing you to invest the difference into a high-quality renovation, which can boost both the property’s value and appeal.

What factors should I consider when deciding between construction and remodelling?

When choosing between construction and remodelling, consider the time, budget, and the level of customisation you want. Building from scratch offers full customisation but can be more time-consuming and costly. On the other hand, remodelling and construction of an existing property can save time and take advantage of existing infrastructure, though it may involve compromises in design.

How do I estimate the construction cost for a residential building in Dubai?

The construction cost for a residential building depends on factors like the size of the property, the location, and the quality of materials used. Additionally, land acquisition and permits must be considered when calculating the total cost. Working with a Property Management Consultant can help you get an accurate estimate and manage costs effectively.