Home extensions

1. HOME IMPROVEMENT
Everyone knows that Dubai property market is a volatile one in terms of
pricing as well as supply and demand. It’s either doom or boom.
If you are a home owner seeking extra space, you may find the property
market is downtrodden and you can’t sell and have to stay put, or prices
are rocketing up so quickly that you can no longer afford the premium on
buying that extra space.
So if you can’t move, why not improve?
Renovations are not cheap, but can mean big savings over upgrading to a
larger property and bigger profits when you eventually sell.
MONEY MATTERS
The cost of extending is generally cheaper than moving. Obviously the
total varies depending on the property you are moving to and from.
However, whatever the cost, this money could be utilised to pay a
significant proportion of any extension costs. A smart way of comparing
the cost of extending to moving is to add the cost of the proposed works
to the existing property value and see if you can buy the space ready built
cheaper.
For example, if you live in a 3 bedroom house worth AED 2 million and
there is a nearby 5 bedroom house for sale at AED 3.5 million, then the
cost of moving would be AED 1.5 million plus, say AED 200,000 transfer
taxes, brokerage costs and actual moving costs, i.e. a total of AED 1.7
million.
If you compare this to the cost of extending say 1000 square feet of
additional space which may be, for example AED 500,000, then you are
saving AED 1.2 million if you extend rather than move. Do your own sums
to see what works out for you.
Unless your extension is badly built it will add value to your property. It is
difficult to be precise about the amount as this varies depending on the
number, size and use of the additional rooms. As property generally
doubles in value over a ten year period you are unlikely to lose out in the

2. long term even without extending, but a well designed and built addition
could increase the value even further.
Opinions vary as to the true added value but ultimately the only figure that
really counts is how much a purchaser is prepared to pay for it.
In Europe and the US it is considered that living space adds more value
than bedroom space. However in the UAE, the market is relatively
unsophisticated and valuations are done on a price per square foot basis
regardless of configuration. The variations in price per square foot are
caused by location and to some extent the quality of the
developer/construction. Sadly the return on a high quality finish is
marginal.
Whatever the final figure is, it is essential to design and build extensions to
an excellent standard and we cannot overemphasize the importance of
getting expert advice at an early stage. Poor quality work could lead to
little or no value being added. Worse still, a shoddy job could put your
property at risk.
Our view is that most homeowners extend a property in order to use the
space themselves. Unless you are a property developer, it is unlikely that
you will be looking to sell the property immediately upon completion of the
work but it is comforting to know that the cost of the extension is also an
investment in your property that you will realise when the property is sold.
We in the UAE are so focused on our properties as ‘future profit
generators’ that we forget that we may have to stay put in any given
house for several years at a time, and sometimes longer than anticipated.
Therefore, shouldn’t we enjoy our home that little bit more, and not just
consider it as an investment but a place of rest and relaxation? Besides the
cost savings, house extensions also enable families to avoid being
uprooted. This often is the main reason why people choose renovations
over moving. They like where they live, but they simply need more living
space.
HOW MUCH WILL IT COST TO BUILD?
It is impossible to give a simple guide to the cost of a house
extension because numerous factors affect it. For a basic round figure of
building costs of AED 450- 500 per square foot of floor area is sometimes

3. quoted but this can vary significantly either way (particularly upwards)
depending upon the exact nature of the scheme.
WHAT CAN AFFECT HOME EXTENSION COSTS?
SIZE AND SHAPE
Generally very small house extensions tend to be proportionately more
expensive than larger ones; however beyond certain sizes (depending upon
the construction) it may be necessary to have additional beams or columns
and thicker walls etc. which might reduce some of the savings due to its
size. A simple floor plan of square or rectangular shape is usually more
economical to build. Some extensions may be subject to a Community
Infrastructure Levy.
WORK TO THE EXISTING HOUSE
Few home extensions involve just the building of the new part, they often
require some interconnection with the original house added to additional
works like rearranging the layout in the existing part (creating corridors,
en-suites etc.) It may be that with the additional accommodation the air-
conditioning, plumbing and electrical systems become stretched or in need
of renewal anyway. Where there is a significant alteration to the roof, it’s
important to consider whether the existing tiles still have a reasonable
lifespan. As such, these additional expenses should be added to the home
extension costs. However there are ways of saving costs such as putting in
a flat roof for instance.
BASEMENTS
Building a basement under an existing house is, according to Shenod P.K.
Managing Director of Eurotek Services “one of life's more challenging
tasks," but it could be worth it if you need the extra space. Avoid shortcuts,
as you risk damaging your house or foundation. Building a basement may
shift your house, no matter how it's done. Hiring general contractors is the
way to go as they come equipped with both the knowledge and
experience.”
Building a basement is not just a matter of digging a hole under the house.
The house must be placed on a temporary foundation while tons of soil are
removed from underneath in a process that could take several weeks to

4. several months, during which time you will most likely be required to leave
your home. So you'll have to factor in what it will cost to move into a hotel
or live elsewhere.
A more affordable alternative to adding a basement is to build it not under
your house but next to it, i.e. under the garden. This alleviates the need to
dig under your house or physically move it. Building an adjacent basement,
possibly with stairs leading down to it from somewhere in your home,
could save you thousands of dirhams as opposed to a basement
underneath the home. However, the numbers fluctuate depending on
these various factors.
QUALITY OF MATERIALS AND FINISH IN THE HOME EXTENSION
There can be considerable differences between the cost of materials
between for example a basic brick and tile and premier quality hand-made
bricks and tiles. These variations can sometimes be even more marked
with the internal finishes. A home extension containing a kitchen or
bathroom is inevitably more expensive than a fairly clear space such as a
living room. Additionally there can be a vast difference between budget
lines from DIY retailers and high end luxury products.
OTHERS COSTS
Aside from the actual home extension costs there are other charges that
form part of most home extension projects.
 Design Costs: Architectural and sometimes structural, interior,
electrical etc
 Master developer regulations and Community Infrastructure Levy
 Supervision or project management costs depending on size and
complexity
 Quantity surveyor (depending on size and complexity)
 Other costs you may incur as a result of the work taking place,
perhaps renting another property, renewal of carpets, curtains etc.
Our Feasibility Study is the perfect solution...
EUROTEK Feasibility Study includes:

5. Property Survey and Initial Meeting
We have an initial meeting with you to agree the work needing to be
completed and the space you require after conducting a full measured and
photographic survey of your property.
Scaled Plans
Once we have a clear understanding of your requirements, we prepare
initial scheme drawings (see samples to opposite) for your proposal.
Design Statement
We include a written Design Statement that provides you with a summary
of why your proposal has been designed in the way we have presented it
to you. We then summarise the planning and building regulations
requirements for your proposal.
Budget Cost
We provide a basis specification of the work and an initial budget cost
using our own customized software.
Project Timeframe
The feasibility study includes a summary of the anticipated timings for
your project.
Feasibility Study Preparation/Fee
It normally takes two weeks to complete the Feasibility Study from the
survey date and, once completed, we present the scheme to you at your
home.
The cost for this Feasibility Study service is AED XXXX
due upon completion of the Feasibility Study.