Modernising Contracting Processes in Dubai’s Real Estate: Insights from Fawaz Sous, CEO of OCTA Properties
The Landscape of Luxury Real Estate
Dubai’s skyline is not just a beautiful sight; it’s a monumental testament to ambition and brand power. The city has become a hotspot for luxury living, marked by the launch of over 70 branded residence projects since 2020. Iconic names like Armani, Four Seasons, and Bulgari have established their brands in Dubai’s real estate market, catering to a global appetite for luxury.
However, as developers race to meet this demand, they are increasingly confronted with the pressing need to rethink contracting processes. The intricacies of real estate development require a careful balancing act amidst high stakes, tight timelines, and unforgiving margins, especially in the realm of branded residences.
The Importance of Experience Over Square Footage
Branded residences aren’t just about building homes; they’re about creating an experience that encapsulates the essence of a global brand. The promise of luxury begins long before the first brick is set. Developers must ensure that the entire process from material selection to execution aligns with the brand’s standards.
For instance, if the marble used doesn’t meet the luxurious benchmark set by its namesake hotel, or if the lighting falls short of expectations, the brand’s image is at risk. Potential buyers are not merely purchasing a unit; they are investing in an aspiration—a lifestyle that must reflect the quality promised.
The Developer-Contractor Relationship
A vital aspect of success lies in the relationship between developers and contractors. When misalignment occurs, the repercussions are far-reaching, resulting in delays, increased costs, and ultimately, a product that doesn’t live up to the promised standards. In the context of branded developments, such failures magnify significantly, jeopardizing trust between buyers and developers.
As the industry evolves, many contractors in the UAE face the challenge of managing multiple high-profile projects at once. While this indicates a bustling market, it also stretches resources thin and can tempt shortcuts in areas where quality must not be compromised, such as mechanical, electrical, and plumbing (MEP) systems.
In-House Versus External Contracting
At OCTA Properties, the strategy is to keep a significant portion of contracting in-house. This approach allows for enhanced control over project execution and a stronger alignment with brand standards. By selectively engaging external contractors and ensuring rigorous oversight, OCTA has maintained a high client satisfaction rate.
The takeaway? Vertical integration can be an effective model. It doesn’t mean excluding contractors but fostering a collaborative environment that pulls them closer to the core operational goals. As competition intensifies in the luxury sector, focusing on quality and execution will emerge as crucial differentiators.
Raising Expectations
In an increasingly discerning market, buyers are becoming savvier. They carry experiences from luxury establishments in global cities and expect nothing less in Dubai. Buyers today demand that luxury brands deliver the same level of authenticity in Dubai as they do in cities like London or Tokyo.
Poor contracting decisions lead to substantial long-term implications. A branded residence that fails to live up to its promise can see a decrease in resale value, risking devaluation in the competitive secondary market. Once a reputation is tarnished, regaining it is a lengthy and arduous process.
A Call to Evolve, Not Panic
Fawaz Sous doesn’t perceive the challenges in contracting as a crisis but rather as an invitation for growth and evolution in the industry. Developers have an opportunity to rethink their construction methods, paying equal attention to both design and execution.
By embedding brand DNA at every level of construction, selecting partners who appreciate luxury’s nuances, and investing in quality execution, the standard for branded living can be elevated in the UAE. It’s about acknowledging that execution is the often-overlooked force that determines success in a fiercely competitive market.
Final Thoughts
As Dubai’s luxury real estate landscape continues to flourish, the imperative to modernize contracting processes becomes ever more critical. This evolution represents not just a necessity, but a promise to elevate the living experience for potential buyers and maintain the city’s status as a premier global destination for luxury living.
