Dubai's Branded Residences: A key sector in luxury real estate
- August, 20 2024
Since the introduction of Armani Residences in Burj Khalifa in 2010, Dubai has cemented its position as a global leader in the branded real estate sector. According to a report by the consulting firm Global Branded Residences (GBR), this sector has experienced a remarkable 122 per cent growth over the past five years, expanding from 23 to 51 projects. This substantial growth underscores Dubai’s role as a prime destination for branded residential developments, appealing to investors and buyers worldwide.
Understanding Branded Residences
Branded residences are properties developed in partnership with globally recognised brands. Initially dominated by major hotel chains that offered serviced apartments with hotel-like infrastructure, the market has since expanded to include collaborations with jewellery heavyweights, fashion houses, and luxury car manufacturers. This evolution has led to the development of such standout Dubai projects as Bulgari Resort and Residences, Cavalli Tower, Mira Villas designed by Bentley Home and Trussardi Residences. These properties offer a certain blend of luxury, exclusivity, and brand prestige. They often also feature fully furnished interiors, bespoke services and one-of-a-kind amenities.
The Appeal of Branded Residences
One of the main attractions of branded residences is the assurance of quality and service. According to research from Savills, branded residences can command a rental premium of up to 31 per cent compared to non-branded projects, making them appealing to investors. Additionally, these properties tend to appreciate well over time, offering profitable resale opportunities and attracting long-term buyers seeking stable investments.
Rental Preferences
80% of tenants sought for apartments, with the remaining 20% considering villas. Among apartment seekers, 60% preferred furnished properties, while 38% opted for unfurnished options. For villas, 57% of tenants favoured unfurnished units, and 42% preferred furnished properties.
When it came to apartment rentals, 37% of tenants were interested in one bedroom units, 31.7% in two bedroom units, and 20.9% in studios. For villas, 43.1% of tenants searched for three bedroom units, while 35.4% looked for four bedroom or larger options.
Top areas for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. For villas, popular areas were Jumeirah, Al Barsha, Dubai Hills Estate, Akoya Damac Hills, and Umm Suqeim.
The Future Growth
Dubai’s branded residences continue to thrive, driven by a combination of luxury, quality, and brand prestige. As the sector evolves, it will likely attract more attention from both local and international clients, solidifying Dubai’s reputation as a hub for luxury real estate. With its focus on quality and sought-after lifestyle patterns, branded high-end living spaces deliver more than just a place to live – they offer an experience intertwined with the identity and certain appealing values. With a limited supply and demand naturally growing with the city itself, they seem to remain among the most solid investment assets the market can offer, at least for any foreseeable future.
Original article reference: Khaleej Times.
"Get In Touch"
“Our Investment Manager is Ready to Help You”
