COMMENTS
Investing for the long term Facilities management solutions and value-added real estate services take the spotlight as companies invest for the long term
DUBAI REAL TIMES
W
20
hile unprecedented global economic challenges have affected real estate and construction markets, several companies have managed to stave off extinction by harnessing all available resources that help improve competitiveness. The key to this approach, analysts note, is to invest in solutions and services that enhance long-term sustainability and improve operational efficiency. In the property sector, for instance, firms are taking proactive steps to counter the effects of diminishing demand by investing in facilities management solutions and other value-added real estate services, which are now a lot more accessible because of a more competitive pricing structure. “There had been a prolonged period of diminished construction costs as a result of reduced property demand and slow construction activities. The corresponding price corrections naturally reverberated across the real estate value chain, including facilities management solutions. I believe this is a very crucial situation wherein businesses must be able to correctly assess how they should be able to take advantage of competitive pricing structures to offset the effects of a slow demand,” said Sobhi Agha, General Manager, The Specialists. “Some companies capitalise on the low costs by optimising their construction activities. On the other hand, property owners, based on our experience, are investing more on products and services that enhance long-term sustainability such as facilities management solutions.
Sobhi Agha
Either way, I believe they are making the right decision by focusing on the future. Demand gaps and fluctuating construction costs are shortterm issues and the best way to take advantage of the situation is to think long-term,” added Agha. Agha has revealed that the company has seen a significant increase in the number of developers and building owners that are now aggressively seeking suitable facilities management solutions and other complementary real estate services to boost business value and longterm prospects. Just recently, The Specialists has sealed an agreement to deliver sales, leasing and property management services to Dunes Village, a Dh300 million development in Dubai Investments Park. Agha also noted that the growing emphasis by
local authorities on green building regulations has likewise increased demand for the company’s energyefficient property management solutions. “It’s all about consolidating your business. Different economic situations present different challenges and opportunities. In this period of economic difficulties, property management solutions and other valueadded real estate services serve as important consolidating measures that definitely help developers and building owners boost business and asset value. Moreover, governmentled efforts to promote green building standards have likewise further enhanced the demand for the services that we offer. This is why business has remained upbeat as usual for us as our value-added real estate
solutions offer companies an opportunity to focus more on their long-term business prospects and abide by green building regulations,” said Agha. While costs of construction materials have previously declined by up to 30 per cent, recent reports show that they have recently jumped by 15 per cent. However, analysts say the fluctuating figures do not suggest anything concrete at the moment and may be the result of companies buying to replace stock, and not necessarily because of a sudden sharp surge in construction activities. “Things don’t change overnight. The best approach is still to prepare and invest in solutions that offer the best long-term value. In this regard, there have been several companies that are now reaping the benefits of adopting facilities management services through reduced maintenance costs, streamlined operations, energy efficiency, and long-term sustainability. Surely, such an investment puts them in a very good position to weather the downturn and, more importantly, capitalise on the excellent opportunities when the real estate and construction industries finally stabilise,” concluded Agha. The Specialists delivers a comprehensive range of services to cover all types of property transactions within both the commercial and residential markets, for lease and for sale. The company additionally offers comprehensive property management services to clients in the UAE, while it has also been expanding across other key markets in the Middle East, including Lebanon.