How design can be finance-friendly

Wealth generation is one of the main drivers shaping the built environment. In today’s fast-paced world, the allure of quick financial returns is prioritizing a ‘liquid’ approach to architecture, a preference for standardized spaces and maximized assets that drive safe short-term profit making. This radical market shift has misconceived the benefits of age-old practices in sustainable urban design.

Consciously designed urban districts are not just aesthetically pleasing; they can also be powerful generators of economic value. A study cited by the UK Design Council demonstrated that visually appealing environments, flexible spaces, and cultural spaces are design approaches that can yield a residual value of 15% more than conventionally designed schemes. Lower operational costs, higher property values, tenant satisfaction and well-being, and higher productivity are few factors that explain this added margin.

The following demonstrates five design strategies that prioritize people and environment but also testify how conscientious design delivers long term economic and life-cycle value as well.

1. Natural Windfall

Although vegetated and blue spaces, such as lush gardens and well-maintained parks are non-revenue generating assets, they are not a liability either. In fact, as coveted amenities, the construction cost is recuperated in boosting the prices of adjacent properties. Landscaping also supports a vibrant communal life, encourages physical activity, and reduces stress, all of which improve the health and well-being of residents. Thoughtful landscape design can also contribute to operational and maintenance cost savings. Strategically placed trees, for instance, provide shading and cool breezes which substantially lower building energy bills.

Wasl 1, a residential cluster in Dubai, is a testament to the upsides of incorporating green spaces into a community’s offering. It boasts a serene getaway environment in the heart of the city due to Atkins’ conscious design and building orientation that captures views of the adjacent Zabeel Park. The success of this concept prompted its developer to expand the offering to create an inner block-scale park with a new venture aptly called ‘Park View Residences’.

2. The Live, Work and Play Consumer

Providing a variety of uses (like retail, entertainment, education, healthcare, and culture) within a residential neighbourhood is a highly demanded infusion. Apart from opportunities for cross-selling, different asset groups generate multiple revenue streams which mitigate investment risks and improve liquidity for developers and property managers. As for residents, having convenience stores within easy reach is an important locational decision. Ultimately, promoting a local economy and unlocking street-level activity appreciates property values, props up potential property prices, and improves return on investment.

For example, the Business Bay Executive Towers in Dubai remain one of the most sought-after destinations for businesses, and families. Centrally situated, the block-scale development features a unique two-storey shopping mall at the podium level. Retail frontages activate the adjacent pedestrianized street with round-the-clock activity, a factor that makes this area attractive years after its completion.

3. Housing Bonanza

Providing a variety of housing allows a development to adapt to fluctuating market conditions. First, by targeting multiple demographic backgrounds – yuppies, families, and empty-nesters, not only is risk spread among different demand groups, but occupancy rates are ensured to remain at peak levels and so are long term financial returns. Second, flexible layouts and phased infrastructures can help accommodate new future uses easily and reduce the cost of major renovations or rebuilding. Developers can also plan to adjust the mix of residential units over time, ensuring the continued relevance of the development to changing housing trends.

The Pulse in Dubai South is one such example. It offers a mix of apartments and townhouses supported by vibrant commercial amenities such as a shopping mall, a mosque, and a retail boulevard. In addition, the community includes more affordable housing options that reach a broader tenant market. <

4. Selling the Iconic

Landmark designs can create significant advantages too. They become symbols, intertwined with the everyday lives of people as well as the city’s identity, history, and culture. As such, they consistently attract recognition and positive publicity. Armed with a positive brand image, these developments can target elite investors, resulting in sustained occupancy rates, high visitor footfalls, and spill-over growth for the surrounding areas.

The Atkins-designed Burj Al Arab, a global icon, is one such symbol of Dubai. Built on its own island, the seven-star sail-shaped hotel attracts tourists from around the world. With its pompous interiors, fine-dine restaurants, and palatial suites, not only has the Burj Al Arab succeeded as a financial venture, but it has also aided Dubai in attracting investors and visitors of all walks, boosting the city’s overall economy.

5. Sustainability at the Core

Environmentally conscious designs are cost-efficient. Although initiatives such as net-zero carbon emissions and waste-free and/or circular economy may incur higher capital investments, these costs are usually offset by much lower operational expenses due to lower resource demands. This yields higher returns in the long run. Also, a by-product of leveraging sustainability as LEED or Estimada green building certification targets is the elevation of the building or district’s reputation in the market.

FIVE Jumeirah Village Dubai stands out, not only due to its unusual helix shape, but also because of its emphasis on sustainability. Atkins led this award-winning project from concept through detailed design and environmental impact assessment. By employing lush green terraces and an abundance of natural daylight, the building climatizes its interiors naturally which helps to conserves energy and lower utility bills.

In today's rapidly urbanizing and increasingly competitive world, it has become ever more critical to build cities that people love to live, work, and play in. But spaces that have been designed to solely meet financial targets are failing to do that: They are frequently generating places that lack vibrancy and human engagement. Although design cannot be a panacea to all problems, creating well-integrated urban environments, in which developers sensibly balance social and environmental decisions, can result in thriving communities that promise strong and unwavering financial returns.

This article was authored by Rony Hobeika, Associate Principal, Urban Design & Malavika Vinod, Urban Planning Consultant, Middle East.

It was first published at Construction Week in September 2023.