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A recent report by Morgan's International Realty states that the emirate witnessed a surge in the sector in H2 2023
March 05, 2024 | Staff Reporter | UAE | Developers
Morgan’s International Realty, a Dubai-based luxury real estate brokerage and property investment consultancy firm, recently released a report on branded residences which says that the market flourished in Dubai in the second half of 2023. Known for its opulent real estate landscape, the emirate has witnessed a progressive growth of branded residences over the years with a remarkable surge in the second half of 2023.
While a total of 14 new branded residence schemes were launched within the second half of 2023, further cementing Dubai’s status as a global hub for luxurious living; as of December 2023, the city boasted a total of 106 branded residence schemes.
Dubai’s branded residences continue to attract investors with an average price of 3,693 AED per square foot, equivalent to approximately 1,000 USD. This pricing remains competitive for prime property in major global cities. Stand-alone branded residences with only a brand association are currently the most popular schemes due to the fact that brands from various industries are entering the race, with the majority of the new brands entering the segment being nonhoteliers. These schemes now account for 35% of all branded residences schemes in Dubai.
Notably, branded residences transactions represented 7.8% of all real estate transactions in Dubai during H2 2023, underlining their growing significance within the luxury real estate landscape. Off-plan branded residences carrying a 3% premium over ready branded residences. This difference does not necessarily imply that off-plan investments are more luxurious; rather, it signifies strong demand for upscale developments that are yet to be completed. An astounding 76% of all branded residences sold during the second half of 2023 were off-plan properties. 60 branded residence projects are currently under construction in the emirate, signalling sustained growth.
In conclusion, Dubai’s branded residences market stands as a testament to the city’s allure as a luxury real estate haven. With its expanding portfolio, premium offerings, and an influx of diverse brands, Dubai continues to shine brightly in the global luxury property landscape. Prospective buyers are encouraged to conduct thorough research and seize the opportunities offered by this thriving segment.
