.png "https://thebusinessfrontier.com/")
REM TIMES takes a look at some of the factors that are favouring the exponential growth of branded residences in Dubai
March 19, 2024 | Deepa Natarajan Lobo | UAE | Developers
With renowned international brands constantly looking for new ways to expand their portfolio, branded residences have witnessed a rapid surge across the world in the last several years. Interestingly, the expansion has not just reached developed markets but also emerging ones, where companies are taking advantage of their reputations and creating world-class residences with a bouquet of amenities, leading to tremendous wealth creation and economic growth.
Hence, it’s pretty straightforward why in Dubai, a city known for its opulence and dynamic real estate, the branded residences market has only been escalating. From the first branded residences that were established in 2010 (Armani Residences in Burj Khalifa), the emirate has come a long way with outstanding developments by leading luxury brands like Bulgari, Mercedes-Benz, Lamborghini, Cavalli and Karl Lagerfield dotting its skyline today.
According to Elias Hannoush, CEO of Morgan’s International Realty, a prominent Dubai-based real estate brokerage company, the branded residences market in Dubai is thriving, fuelled by partnerships with luxury brands, integrating cutting-edge technology, and a focus on sustainability and wellness. “These residences appeal to a diverse demographic of buyers, including expatriates, investors, and retirees, by offering luxurious, tech-savvy, and health-conscious living spaces. The post-pandemic shift towards privacy, space, and wellness amenities has further increased demand,” says Hannoush, whose firm recently released an in-depth analysis of the branded residences market in Dubai.
These residences appeal to a diverse demographic of buyers, including expatriates, investors, and retirees, by offering luxurious, tech-savvy, and health-conscious living spaces. The post-pandemic shift towards privacy, space, and wellness amenities has further increased demand.
Elias Hannoush, CEO, Morgan’s International Realty
Being a relatively new market has only cemented Dubai’s position as a leader of branded residences, according to Riyan Itani, Director & Founder of Global Branded Residences, which did an in-depth research of 121 open and pipeline projects and presented the findings at ‘The Future of Branded Residences’ event in Dubai recently. “Compared to many other global cities that are older and more constrained in terms of availability of land and buildings, Dubai has been able to deliver new build properties that are branded at a scale that is rare in other global cities such as London and New York,” he points out. “This capacity has, serendipitously, occurred in conjunction with the rise of branded residences as a residential market sector and developers in Dubai have embraced the model as a way to differentiate their projects, increase sales values and sale velocities, thereby raising the bar in the market,” he adds.
The latest research by Global Branded Residences has found that -
Itani believes that branded residences are also highly appealing to eager investors looking for security due to the developer’s engagement with a renowned brand resulting in great quality of product, excellent service and likelihood of quick delivery.
Thanks to its strategic location, government support and favourable visa regulations, Dubai’s position is only going to grow this year, the industry experts affirm. “With Dubai's strong investment potential, branded residences command higher resale values and rental yields, attracting global investors. The supportive regulatory environment, including residency visas for property investors and visionary urban development plans, underpins the market's growth. As Dubai continues to cement its status as a premier destination for luxury living and investment, the branded residences sector is expected to expand further, driven by evolving buyer preferences and on-going innovation in luxury real estate,” concludes Hannoush.
