If you are a real estate investor looking to maximize your capitalization, consider the power of interior design. Interior design is not just about decorating a property with furniture and accessories. It is a strategic way of enhancing a property's beauty, functionality, and style to make it more appealing and valuable to potential buyers or renters. This article will explore how interior design works, the essential elements to invest in, what amenities you should consider, how much interior design can help you capitalize on, and the expert's advice.
Understanding Interior Design
Interior design is the art and science of enhancing the interior of a space to achieve a healthier and more aesthetically pleasing environment for the people using it. Interior designers plan, research, coordinate, and manage such projects. They must consider various aspects such as space planning, lighting, color, furniture, materials, accessories, etc.
The Essentials of Interior Design in Dubai
Regarding interior design for real estate investment, not all elements are equally important. Some pieces can have a higher return on investment (ROI) than others, depending on the property's type, location, and target market. Here are some of the most essential elements to invest in:
Flooring is one of the first things people notice when entering a property. It can also affect the space's durability, maintenance, and comfort. Therefore, investing in high-quality flooring that matches the style and purpose of the property can be a wise decision. For example, hardwood flooring can add warmth and elegance to a villa or apartment, while ceramic tiles can be more suitable for a bathroom or kitchen.
Lighting is another crucial element affecting a space's mood, ambiance, and functionality. Proper lighting can make a property look more spacious, bright, and inviting. It can also highlight the architectural features and decor of the space. For example, recessed lighting can create a modern and sleek look for an apartment or office, while pendant lighting adds character and charm to a villa or restaurant.
The kitchen is often considered the heart of a home or a business. It is where people cook, eat, socialize, and entertain. Therefore, investing in a well-designed kitchen can increase the appeal and value of a property. A good kitchen should have enough storage space, counter space, appliances, and functional and stylish fixtures. For example, stainless steel appliances can give a kitchen a professional and sleek look, while wooden cabinets can give it a cozy and rustic feel.
The bathroom is another essential element that can affect the perception and satisfaction of a property. A well-designed bathroom should be clean, comfortable, and relaxing. It should also have enough ventilation, lighting, plumbing, and fixtures that are efficient and elegant. For example, a walk-in shower can make a bathroom look more spacious and luxurious, while a bathtub can make it more cozy and romantic.
Capitalizing on Interior Design in Dubai
Interior design is a crucial factor that influences the profitability of your real estate investment. According to a study by Home Staging Resource, a professional home staging company, staged homes sell for an average of 17% more than non-staged homes. Moreover, staged homes spend 72% less time on the market than non-staged homes. This means that you can sell your property faster and at a higher price with the help of interior design.
What Does Data Say About Interior Design in Dubai?
The profit you can gain from interior design depends on several factors, such as the type, size, location, and condition of your property, as well as the market demand and supply. However, some general guidelines can help you estimate interior design's potential return on investment (ROI).
According to Thom & Gery, a Dubai-based interior design, contractor, and real estate company, the average ROI of interior design for residential properties in Dubai is between 10% and 15%. For commercial properties, the average ROI is between 15% and 20%. These figures are based on their experience working with various clients and projects in Dubai.
To illustrate, let's take an example of a residential property in Sobha Hartland, a luxury community in Dubai. The property is a four-bedroom villa with a built-up area of 6,017 sqft and a selling price of AED 19,000,000. If you invest AED 500,000 in interior design for this property, which is about 2.6% of the selling price, you can expect to increase the value of your property by AED 1,900,000 to AED 2,850,000 (10% to 15% of the selling price). This means that your ROI would be between 280% and 470%.
Of course, these are only estimates and not guarantees. The actual ROI of interior design may vary depending on the quality and effectiveness of the invention, as well as the market conditions and trends.
Interior Design Companies in Dubai
If you are looking for professional help to create an interior design that suits your investment objectives, you can choose from some of Dubai's best interior design companies. Here are some examples:
A&T Group Interiors
This company specializes in retail, hospitality, and commercial space interior fit-out projects. They have more than 15 years of experience and have worked with clients such as The Chocolate Bar, Studio 8, Moneykicks, Ministry of Justice Innovation Center, Ras Al Khaimah Police Station, etc. You can visit their website at: https://www.atginteriors.com/
This company is part of an international architecture and design group that offers a comprehensive range of interior design services for corporate, residential, and hospitality spaces. They have been awarded several times and have worked with clients such as Mandarin Oriental, Jumeirah, Hilton, etc. This is their website: https://www.aedas.com/en/
This company is a multi-award-winning architecture and interior design studio that delivers bespoke projects for private and corporate clients globally. They specialize in residential leisure, workplaces, and cultural spaces. They have worked with clients such as Al Faya Lodge, The Espresso Lab, Nando's, etc. You can visit their official website: https://www.anarchitect.com/
Never Lose an Opportunity
Interior design is a powerful tool that can help real estate investors in Dubai increase their returns and differentiate their properties. By following the latest trends, understanding the market needs, and hiring professional designers, investors can create functional, comfortable, sustainable, and valuable spaces. Contact us at Stat Global to see some great examples of interior design applied to real estate investment.