Developers Turn Their Focus to End Users
    Market AnalysisApril 7, 20153 min read

    Developers Turn Their Focus to End Users

    With speculative demand reduced, developers are designing homes for people who will live in them. What that means for design, price and quality.

    Regional Director, MENA

    20-year veteran of Dubai's property market. Ahmed was instrumental in the development of Palm Jumeirah and Downtown Dubai's residential strategy.

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    The cooling measures of 2014, combined with global uncertainty, have reduced speculative demand in Dubai. In response, developers are increasingly designing projects for end users, people who will live in their homes, rather than for investors planning to resell.

    What end users want

    • Practical layouts: usable spaces, storage and natural light.
    • Community: parks, schools and retail nearby.
    • Affordability: realistic prices and manageable service charges.
    • Quality: durable finishes and reliable construction.

    How developers are responding

    New projects feature more townhouses, family apartments and community amenities. Payment plans are designed to help residents transition from renting to owning.

    Effects on the market

    An end-user focus supports stable demand and reduces volatility. It also encourages better quality, as end users are more demanding about the homes they live in.

    Implications for investors

    Properties that appeal to end users are usually the easiest to let and to sell. Investors benefit from following the same priorities.

    Remaining challenges

    Affordability remains an issue for many middle-income residents. More supply in the mid-market would help.

    Design features end users notice

    End users judge homes by how they work day to day. They notice whether the kitchen has enough counter space and storage, whether bedrooms can fit a wardrobe and desk, whether the living room receives natural light and whether there is a place for laundry. Balconies that are too narrow to use, or bathrooms without ventilation, quickly become frustrations. In villas, families value covered parking, garden privacy and practical maid's rooms. Developers who test layouts with real residents in mind produce homes that sell and rent more easily. Investors who choose such homes benefit too, because properties designed for living tend to attract longer-staying tenants and more buyers at resale.

    Our view

    The shift towards end users is a healthy development. We help buyers find homes that suit their lives and investors choose properties with broad appeal.

    End usersDevelopersDesign