Dubai beats out the likes of international realty hotspots such as Florida, New York, and London
Armani, Bugatti, Versace, Kempinski, Address are just some of the world’s top luxury brands who have their branded residences in Dubai. The emirate which is riding an unprecedented boom in its real estate market, is set to add to its collection of such properties as it retains the title of the number one city for branded residences, in the world.
Dubai beats out the likes of international realty hotspots such as Florida, New York, and London, according to a report by property consultants Savills.
With 51 such branded residences currently operational, and an equal number set to come on to the market by 2030, Dubai looks to retain the crown for the remainder of this decade.
The global property market has seen a slowdown in the real estate sector owing to the increase in interest rates initiated by various central banks to contain inflation. From the US to EU, property markets have seen a slowdown in 2023.
However, Savills notes that branded residences have remained resilient in the face of such global headwinds. It reports that the number of branded residences schemes has increased by over 160 per cent in the last decade, with new brands, locations, and a shift in amenities set to propel the sector even further.
Emerging markets take the lead
While North America accounts for one-third of the global supply of branded residences, emerging markets in the Middle East, East Asia and Latin America are seeing the strongest growth in this segment. In the past 30 years, as the sector has grown, it has expanded into all regions; Asia Pacific and the Middle East are hotspots as they are home to an additional 40% of total supply,” explains Kelcie Sellers, associate, Savills World Research.
The highest growth over the pipeline period can be found in the Middle East (an increase of 120 per cent) and in Central and Latin America (an increase of 89 per cent), with all global regions forecast to exhibit high levels of growth until 2030, notes Savills. Cairo, Ho Chi Minh City, Nha Trang, Guanacaste, and San Miguel de Allende complete the top five, each with forecast growth of more than 400 per cent by 2030.
“Demand for luxury branded residences from domestic buyers is likely to grow faster in emerging cities, where the quality of the existing stock is unlikely to meet the requirements of those looking for high-quality fitouts and services. In these markets, there will be opportunities for urban, upper-upscale residences as well as luxury products for brand-loyal, well-travelled customers,” said Sellers.
What is a branded residence?
Branded residences are born out of a collaboration between developers and well-established brands. This collaboration includes both the design and management of the properties.
In essence, developers are allowed to promote and sell these properties using the brand’s easily-recognised trademark, and in return, the brands receive royalty fees.
Types of branded residences in Dubai:
- Residential units within hotels
- Residential developments next to hotels
- Stand-alone residential developments
- Residential developments under hotel management
What sets branded residences apart from other non-branded residences in Dubai is that the brand often supervises and maintains the properties affiliated with their brand. As a result, they tend to offer a higher and more luxurious standard of services and amenities.