Introduction:-
Dubai is becoming one of the smartest cities in the world, with advanced technologies changing the way we live in our urban spaces. Smart Homes in Dubai are on the front lines of this change, allowing for exciting new ways of living and interacting with our homes on a daily basis. Whether itโs lighting, climate control, security, or voice command features, Smart Homes often have smart things that change the way we live in our space.
But Smart Homes in Dubai offer more than just a unique lifestyle across the living space. Smart homes offer unique investments for real estate investors as they are offering larger returns on investment, attracting wealthy and premium tenants, lowering operating expenses, and even increasing in value faster than traditional properties. If you are an investor looking for higher rental income, or a homeowner looking for resale value you need to understand the value of ROI (ROI of smart homes in Dubai cost ) or the other opportunities available.
In this article we will highlight the many ways Smart Homes in Dubai create ROI as well as emphasize why conversely every savvy investor needs to consider this amazing opportunity.
Reason to boost the ROI and property value by Smart home:-
Smart homes offer a significant edge in a competitive real estate market like Dubai. Hereโs how they help enhance both short term and long term property value:
- Confirm to the Dubai Smart City Vision: Dubaiโs plan to lead the world by becoming the smartest city is highlighted through initiatives like the Smart Dubai 2021 strategy. Smart infrastructure has become one of the major principles of urban planning, therefore properties aligned to the Smart Dubai strategy have an immediate appeal, and will be future proofed.
- Lifestyle Expectations from tenants and buyers: Modern home buyers and tenants, notably the younger generations and global expatriates expect smart features. A traditional home without some element of automation, or smart technology, feels like it belongs to the past. It will follow that adding smart technologies will enhance the propertyโs appeal or desirability; basically any smart technology will enhance the perceived and market value of the property.
- Value Adding Enhancements: High impact smart systems, which include integrated HVAC (heating, ventilation and air conditioning), intelligent lighting, smart kitchen appliances, water saving plumbing fixtures, to name a few, are value adding enhancements that will immediately increase the market value of a property.
- Reducing Operational Costs: In many cases, automated homes will reduce energy use and significantly reduce costs over time. Lower running costs are always attractive to tenants; owners, too, will like the lower running costs if only indirectly through cost efficiency contributing to their overall ROI.
- Tech Ready for the Future: The rollout of 5G will enable further integration of technologies like AI, recently even reported in the media concerning IoT. Smart homes are not about to go away, and will become even more premium.
Investing in a smart home today establishes installations in your property that will not be rendered obsolete tomorrow.
Increased Buyer and Tenant Appeal:-
In Dubai, the buyer and tenant demographics have evolved. The average resident today favors and appreciates tech enabled living environments over luxuries like โmarble floorsโ and โgrand entrances.โ Here are four ways Smart Homes in Dubai create increased interest for buyers and tenants:
- Greater Need from Millennials and expats: Millennials account for a large section of the working community in Dubai, combined with their preference for convenience, remote controllability, and efficiencies of smart living make smart homes an ideal choice. Similarly, expats relocating to Dubai for a job often search for simple, plug and play accommodations, which smart homes provide.
- Luxury Appeal without Luxury Pricing: Smart technology can provide an enhanced lifestyle voice controlled lights, smart locks, automated blinds, and more. Most of the time, your cost of construction and furnishing doesnโt drastically increase, yet your mid range asset reflects a superior lifestyle appeal for clients and could elevate it to a premium space.
- Global access to Global Buyers: The Dubai real estate market attracts real estate investors globally. With smart technology, property management can enable investors overseas. It creates a level of confidence in the Dubai market, while attracting tech savvy global buyers to invest.
- Higher probability of resale: A smart home in todayโs competitive market stands out in a listing. Buyers are more inclined to pay higher for an intelligent home that a buyer can also move into. However, time-like factors such as resale can end faster in terms of ultimate buyer decision making.
Energy Efficiency and Cost Savings:-
One of the strongest contributors to Smart home ROI Dubai is the lower cost of ownership through energy efficiency. With Dubaiโs climate and high utility prices energy saving elements are very valuable.
- Smart Thermostats: Air conditioning is a primary drain on resources in Dubai. Smart thermostats have the ability to learn user behavior and modify temperature settings accordingly, without any wasteful over usage, ensuring maximum comfort. Some systems claim to reduce energy usage by 10 to 30%, which are notable savings.
- Lighting Automation: Motion sensor lights, dimmers, and daylight sensitive systems help combat unnecessary electricity usage. Combined with the advantage of money savings, there are also aesthetic and functional enhancements.
- Water Saving Technologies: Automated irrigation systems and smart bathroom fixtures help lower water bills, which can be quite high in larger villas and townhouses.
- Solar Integration: Many smart villas have solar panels and solar hot water built in. These systems have the potential to save users utility costs from utility bills of several thousand dirhams per year.
In a Dubai market where long term tenant costs of living are rising, these savings can make properties more appealing to discerning tenants while also lowering ownersโ long term costs to run and look after for increases in long term operational savings for higher net ROI.
Higher Rental Yields:-
Smart homes generate more rental income than nonsmart homes each and every time. Hereโs why:
- Higher Rent: Smart homes generally rent for 10 to 20% more. Tenants see value in the extra convenience and tech and are willing to pay a premium for enhanced lifestyle reasons.
- Better suited for Airbnb or short term rentals: Smart systems, such as keyless entry, automated lighting, or remote control devices, help short term rentals or Airbnb style properties by offering simple check ins, higher security, and ease of turnaround allowing for higher occupancy and nightly rates.
- Rent to seasoned tenants: Comfort breeds stability in renting. Smart home technology often gives comfort and peace of mind to tenants leading to greater satisfaction levels. Happy tenants are more likely to renew leases, helping to bridge vacancy gaps and maximize landlord savings on overpriced tenant turner overs.
Smart homes yield higher monthly income and less operational issues, which all mean stronger cash flows, making them one of the best real estate options today in Dubai.
Capital Appreciation in Prime Locations:-
Location is king in Real Estate. When you have location and smart home products, you now have the essence of an asset that has immense capital appreciation opportunity. Here is why:
- Emerging Smart Communities: Emerging areas such as Emaar South, Dubai Hills Estate, and Sobha Hartland are being planned as smart communities from scratch. These communities are in higher demand and resale values are much higher than standard communities.
- Government Infrastructure Investments: When the extensive government invests in the infrastructure of an area in addition to the usual utilities, i.e. smart roads, AI policing and IoT sensors, property values will increase substantially. Smart homes in these types of communities will appreciate even faster than a home by itself.
- Off plan Smart Developments: Buying a smart home in the off plan stage, particularly in areas developing new communities, can yield incredible appreciation in value. By the time construction of the smart home is finished and the area is completely developed the value of the property would have appreciated from 20 to 50% and you will have taken advantage of the technology curve in the Community.
The best smart home investors are looking past the current price for properties and looking ahead to futuristic locations which can support smart infrastructure. These like all rentals can produce cash flow while the properties appreciate in asset growth.
Enhanced Security and Marketability:-
Safety and security is a key concern for residents in Dubai, particularly expatriates and families. Smart homes address safety and security, while also improving the value of the property on the market.
- Smart Locks and Access Systems: App based and biometric access enhances convenience and allows residents to eliminate keys. Smart homes allow remote access to guests or service professionals, while also tracking the activity.
- Video Security: CCTV cameras linked to smart phones allow for viewing live feeds remotely from anywhere in the world. This can be particularly appealing to overseas buyers and investors.
- Intrusion Alerts/ Emergency Automation: Smart security systems can contact owners or authorities to notify them of a break in or fire. Some setups can also lock doors or turn off gas valves in emergencies.
Security systems provide not only the protection of the asset, but often act as an excellent selling point. Promoting the influence of safety and security features in listings and viewings can often place a deal closer, especially with international and high end clients.
Conclusion:-
Smart homes represent the future of real estate in Dubai and that future is already here. They offer an unrivalled combination of lifestyle, convenience, energy efficiency, enhanced security, and automation. No traditional property can compete with smart homes in terms of all around value. For investors, the ROI of smart homes in Dubai is simple: higher rental yields, lower operational costs, increased resale value and long term capital growth.
For end users, they will appreciate comfort, security and savings. Whether youโre looking at an off-plan smart villa in Emaar South, an automated apartment in Downtown Dubai, or a smart townhouse in Dubai Hills Estate, the fact is that Smart Homes in Dubai are not only smart by tech they are smart by investment. As Dubai continues to maintain its status as a global hub for innovation, properties that are adopting technology will be leaders in the real estate market. When ROI is a king, Smart Homes offer royal returns.
