'FM boosts business and asset value' says analyst

The Real Estate Specialists general manager, Sobhi Agha.

While unprecedented global economic challenges have affected real estate and construction markets, analysts note companies are now investing in solutions and services that enhance long-term sustainability and improve operational efficiency.

In the property sector, firms are taking proactive steps to counter the effects of diminishing demand by investing in facilities management solutions and other value-added real estate services, which are now a lot more accessible due to a more competitive pricing structure.

"There had been a prolonged period of diminished construction costs as a result of reduced property demand and slow construction activities,” said Sobhi Agha, general manager, The Real Estate Specialists.

“The corresponding price corrections naturally reverberated across the real estate value chain, including facilities management solutions.

“I believe this is a very crucial situation wherein businesses must be able to correctly asses how they should be able to take advantage of competitive pricing structures to offset the affects of a slow demand."

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Some companies capitalise on the low costs by optimising their construction activities, said Agha, who continued: “On the other hand, property owners, based on our experience, are investing more in products and services that enhance long-term sustainability, such as facilities management solutions.

“Either way, I believe they are making the right decision by focusing on the future. Demand gaps and fluctuating construction costs are short-term issues and the best way to take advantage of the situation is to think long-term," added Agha.

Agha also revealed The Real Estate Specialists is seeing a significant increase in the number of developers and building owners now aggressively seeking suitable facilities management solutions, and other complementary real estate services to boost business value and long-term prospects.

"It's all about consolidating your business. Different economic situations present different challenges and opportunities. In this period of economic difficulties, property management solutions and other value-added real estate services serve as important consolidation measures that definitely help developers and building owners boost business and asset value,” he concluded.

Paul Collett is the editor of facilities management Middle East

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