Dubai – A burgeoning market for Luxury Branded Residences

Luxury Branded Residences

Dubai – offering the ultimate in luxury living, has always been experiencing an influx of high-net worth individuals and in 2021 only, a significant surge was noticed in high-end property sales. To cater to the needs of luxury property buyers and to keep up with this new trend, real estate developers have been adapting their offerings. The emergence of ultra-luxury residences has been a major development, but the increase in luxury branded residences is another aspect of this trend.

Dubai – A new home to luxury branded residences

According to Savills, the demand and resultantly the growth of luxury branded residences is outpacing hotels in the Middle East – with new projects dotted across high-end communities in Dubai. The UAE has been emerged as one of the top markets for luxury branded residences globally, with Dubai taking the top place among the cities. The US is home to more than 200 branded residences but with the number of new branded projects being proposed in Dubai, it is estimated that Dubai will soon overtake New York as the global branded residences capital.

A few luxury branded residences are…

Dubai Marina, Downtown Dubai, Jumeirah Beach Residences and The Palm are a few popular areas for ultra-luxury and luxury branded residences in Dubai. A few renowned branded residences in Dubai are One at Palm Jumeirah, Bvlgari Resort and Residences, Armani Hotel and Residences, Fairmont Residences – The Palm, Palazzo Versace, Address – Dubai Marina, Fendi styled villas – DAMAC Hills, Bugatti styled villas – Akoya Oxygen, Four Seasons, Lamborghini, The Ritz Carlton, Just Cavalli Villas – Akoya Oxygen, One and Only, Dorchester Collection, and Anantara Hotel and Residences.

Branded residences add more value…

Historically, brands have been affiliated with hotel chains to offer private, high-end residences within their hotel building. Recently, the concept of luxury residences is completely changed; the branded residences are evolved to incorporate fashion, automobiles, jewellery and other lifestyle brands with property developers. The role does not end here but these brands play a key role in designing, styling and servicing these residential spaces.

“To meet varying needs of high-end buyers, luxury properties have been evolving, accordingly. A residential project can increase its capital value immediately when a luxury brand endorses it. Generally speaking, a brand-endorsed real estate project receives more attention and can fetch up to 30 per cent more value. With more high-end brands such as the Dorchester Collection, Bvlgari, Versace and Armani, both values and demand can increase by 70-80 per cent, says Ali Mustafa, the Head of Sales Department at HFRE.

Luxury branded residences offer more…

In a highly competitive Dubai residential property market, luxury is synonymous with high-end residential projects but branded residences offer more value and a significant difference. Brands add more not just in terms of premium prices but they bring design expertise and marketing advantages that help attract more customers and achieve a premium price tag.

Luxury branded residences are in higher demand

Globally, the branded residences sector has expanded by 230 per cent over the past decade. According to an estimate, more than 600 branded projects are functional right now and by 2026, the market is forecast to exceed more than 900 projects by 2026. The US, Mexico and the UAE will lead the realty market in terms of the number of new branded residences projects in the pipeline.

An unprecedented number of both hotelier and non-hotelier brands are working to define their brands, upgrade their standards, structure their contractual documents and their operational approach to enter the market.

Branded residences pose to be a safe investment option…

International investors look for safe investment options, therefore they are likely to pick luxury residences. Now, most of them are ready to invest in luxury branded residences that offer more safety and definitely higher capital appreciation. Dubai Marina, JBR, and Palm Jumeirah are a few preferred choices, where foreign investors are ready to invest in branded residential projects. Buying a luxury branded residence is a status symbol and a safe investment option. Moreover, real estate developers can charge premium prices for these properties, as the standard of branded residences is usually higher than the existing non-branded luxury properties.

Buy-to-let option

Another interesting option that makes luxury branded properties more valuable and higher in demand is its leaseback option, in the majority of projects. The buyer can use the property for his short stay and can lease-back to the operator for a set time. In this situation, an operator gets to cover his operational costs along with a margin and the investor gets back a higher Return on Investment in form of rental income – along with the option to stay back after a certain time.

Dubai boasts ostentatious developments and it never lacks in luxury living and style. A few prominent names include Bulgari, Lamborghini, Armani Residences and The Dorchester Collection. If you want to be a part of this glitz and glamour, all you need is to discuss your investment plans with the team HFRE at +971 4876 2473 or you can also write us at info@hfre.ae and one of our experts will get back to you with a handpicked selection of luxury branded residences.

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