Fit-out industry expects booming business in 2020
The UAE's fit-out industry is having a busy time with increasing options for affordable housing, which is inspiring residents to be homeowners.
Coupled with that the Expo 2020 Dubai preparations are giving local and international businesses an impetus to invest in their UAE operations.
The sector players are very optimistic that business is in for a busy period in 2020 and beyond. New reforms in long-term visas are enabling residents to plan and build long-term stay in the region which has given the food and beverage sector a constant need to innovate both in terms of business and boosting customer experiences by refurbishing properties. It has been observed that for many players staying relevant and attractive on social media for F&B, retail and hospitality outlets seems key to their online business.
On industry trends, Mihir Sanganee, design director, Designsmith, said sectors like F&B, hospitality, retail and office still see a steady growth in demand.
"We can see an increase in demand for home design and renovations with the rise in number of home-owners. Free-hold properties also contribute to that trend. There is a big push for being sustainable and refurbishing existing spaces instead of constructing new ones," he said.
He said the F&B sector is currently driven by the unique concepts and consumers are more conscious about materials and products used in their homes and offices - ethically-sourced, natural, recycled and locally-sourced product are in demand.
"This year we can see design and build studios will drive larger growth with higher and faster deliverables with a specialist approach from a one stop shop service."
Established in 2012 to cater to the interior design and fit-out industry, Design Infinity opines that UAE interior fit-out market is one of the GCC's fastest growing industry.
Geetha Nayak, managing partner of Design Infinity, said the much-anticipated growth in the market with regards to 2020 will help all sectors like commercial, hospitality, hospital, retail and residential projects to grow.
"Dubai and Abu Dhabi are experiencing a robust growth in the construction and real estate sector, due to which the interior fit-out UAE market will also be stirred with huge projects and will see an upward trend in the business overall. The main driver of this sector's growth is the increase in construction activities, owing to the Expo 2020, in the region. Construction and real estate sector are the real influencers of growth in the interior and fit-out market."
A Faithful+Gould's report forecasts the UAE fit-out market to reach $973.4 million (Dh3.4 billion) by 2022. At the same time, the renovations and refurbishment market in UAE is also on the rise. Experts estimate renovations can add between 10-15 per cent to the selling price, something that is promoting a lot of owners to remodel and upgrade their older properties.
Ahid Shaikh, founder of BnB, who is also the chairman of Déjà vu Real Estate, said there are two clear segments where "we see a need gap".
"One is homeowners, who are seeking a classy and cosmopolitan look for their new homes, or looking to upgrade existing properties to increase valuation and ensure a steady return on investment. And the other is Dubai's growing residential & commercial projects market."
Recently, Bianca & Bianco, a new concept of affordable luxury porcelain slabs, tiles, and exclusive bath & kitchens solutions, launched its first showroom in Dubai on Sheikh Zayed Road catering to the needs of large commercial and residential real estate projects looking for competitively priced international quality fittings.
"Real estate is one of the biggest investments in your life. Property needs look beautiful and should be upgraded regularly for it to retain and enhance its value. But while you want luxurious finishes and high quality, you also don't want to break the bank! Today everyone, whether a project manager or an individual, wants opulence that is cost-effective and delivers great ROI," he adds.
Abeesh Koshy, operations director, Dubai creative group, said the UAE's fit-out industry today demands a constant innovation both in residential and commercial sector compelling each player to bring in a business strategy which is competitive and disruptive due to higher consumer demand. "The designs are no more contemporary but futuristic as consumers are largely influenced by Generation Z," he said. - firstname.lastname@example.org
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