As demand for fully renovated homes in the UAE market increases, so has the number of investors transforming properties, but some upgrades are considerably more valuable than others, experts have told The National, with kitchen and bathroom makeovers among the most lucrative.
The most important aspects today are sustainability and longevity, achieved through waterproofing, plumbing, air flow, insulation and other factors, says Vish Patel, who, as the owner of a project management company, helps people build their own properties across Dubai. He said when homes are subject to high temperatures and sometimes sudden rainfall, buyers want to know the property can withstand the elements.
Automation is also key, he added. “It’s practicality and things you don’t see that are adding the most value,” said Mr Patel. “Where I’ve seen a big focus in the last one or two years is the knowledge in buyers. The buyers are asking the right questions and if you can tick the right boxes, you can achieve a higher price.”
Stripped back
When buying a property, potential investors need to make sure the core structure of the house is good and then future-proof it, said Mr Patel.
“You want to create real value on a home, [then] you can say to a buyer that you need to service it only every three to six months, but you won’t have any problems for 10 to 15 years,” he said. “At the moment brand-new homes here are being ripped apart in four years because they weren’t built properly in the first place.”
This is exactly what estate agent Ricardo Scala did. He started flipping houses in the newer Sidra communities in Dubai Hills Estate three years ago and recently sold one for Dh2,680 ($730) per square foot, breaking the record in the community for a villa of that size.
“It was the first house in this community to be completely stripped back to the shell and core, creating a brand-new villa rebuilt on the skeletal structure of the original Emaar villa,” Mr Scala told The National.
They changed everything, including rewiring the entire house, adding new air-conditioning, lighting and switches, flooring and bathrooms. They also created a cinema room, two kitchens – one for show, the other back-of-house for cooking – and added a swimming pool, barbecue and dining area in the garden. “All these things really stood out,” he said.
What about the specifics?
Kitchen and bathroom upgrades are among the most effective renovations to make, according to James Sharples, projects director at Bauhaus Project Management, who said renovations in this area "typically increase property value by 5 to 15 per cent".
Adding or upgrading a swimming pool can boost value by up to 10 per cent, particularly for villas, he added, while adding an extra bedroom can also increase a property's worth by about 10 per cent. In his opinion, double glazing generally does not contribute to resale value, although some agents disagree and say improving energy efficiency is attractive to buyers.
The trend of smart home technology is also growing, Mr Sharples said, with potential value increases of 5 per cent to 10 per cent. "As a general comment, calculating value increase varies hugely from property to property but we would say a maximum of 30 per cent is possible should the home be fully modernised or renovated to a high standard," he told The National.
Don't overpersonalise
It is important not to overly personalise your upgrades and renovations, said Artaches Grigorian, a top broker at property agency Whitewill Dubai.
"Highly customised features, such as themed rooms, unique colour schemes or luxury fixtures tailored to specific tastes might not appeal to a broad range of buyers,” he told The National. “These upgrades can actually detract from your property's value, as potential buyers may see them as elements that need to be replaced.”
Modern, high-quality finishes are also essential, while investing in premium materials like porcelain tiles and marble countertops, along with a contemporary design, can significantly enhance the property’s appeal, Mr Grigorian added.
“Consider open-plan layouts, premium appliances and features like walk-in showers and double vanities, which are highly desirable,” he said.
At the same time, energy efficiency and smart-home features should not be overlooked, said Mr Grigorian.
“Upgrades such as improved insulation, double-glazed windows and smart thermostats are highly valued in Dubai’s hot climate,” he said, as are durability and low maintenance, “so choose weather-resistant materials for outdoor areas and high-quality finishes indoors”.
Substance over style
There is a big difference between renovating a property and simply upgrading it, added Mr Scala.
“The kind of upgrades that are not worthy of your time and money is when people mask over what is already there,” he said.
“For example, instead of changing the kitchen, they just change the countertops. Or instead of changing flooring, they put down laminate or click flooring on top of the tiles. Instead of putting in a proper garden, they just put down cheap artificial grass. When you look at it, it looks nice, but when you look closely, it’s not well done at all.”
Hidden costs
If you are going to invest in a property with a plan to renovate, then make sure you budget for hidden costs, which can seriously affect your bottom line, said Mr Scala.
“Educate yourself as much as possible on the rules and regulations on the community you want to renovate in,” he said. Often, different developers and communities will have various costs associated with extending floor space or getting permission to upgrade your property.
[People] think they can do a quick job and the reality is you cannot quickly renovate something
Ricardo Scala,
real estate agent
“This is in addition to contractor fees, kitchen and bathroom installation fees, appliances, all hidden costs to do with buying extra space, extra land, rewiring, fixing the garage, tiling and so on.”
Too many people do not factor these fees into their budget and end up losing money.
“They think they can do a quick job and the reality is you cannot quickly renovate something,” added Mr Scala. “It has to be done the right way to achieve the right price if you’re wanting to sell it.”
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If a business does not apply for the refund on time, they lose their credit.
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Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
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Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
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Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
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9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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