According to a report, Dubai has the largest number of completed schemes and the most schemes in the pipeline in the EMEA region
According to a 2023 report on branded residences by property advisor Savills, Dubai has the largest pipeline of branded residences within the Europe, the Middle East and Africa (EMEA) region, with a projected growth of over 72 per cent. With a surge in the number of high net-worth individuals or millionaires, which has grown by 27 per cent in the past five years, branded residential schemes are expected to continue an upward trajectory.
According to Savills, Dubai has the largest number of completed schemes and the most schemes in the pipeline for any market within the EMEA region, with projected growth of 72 per cent over the pipeline period. Fashion and jewellery brands such as Cavalli, Bugatti, de Grisogono, Versace, Bulgari, Baccarat, Fashion TV and others have all jumped on the bandwagon and partnered with leading developers in the UAE and region. Developers have identified the scope of this niche segment and have been launching exclusive projects tailored to fit this segment's needs.
In the UAE, Damac Properties has been one of the pioneers in spearheading this trend with a line of projects added to its portfolio, with amenities that several projects launched over the past year. Other Dubai-based private developers such as Binghatti and Danube have also jumped on the bandwagon. Over the past 18 months alone, the largest local private developer Damac launched 11 branded residential projects across prime areas in Dubai.
Niall McLoughlin, senior vice-president at Damac Properties, says a premium lifestyle with state-of-the-art amenities and facilities in the comfort of luxury is the primary reason that customers look towards buying branded residences. “The UAE has been a promising market, with reports indicating three-digit growth figures in the segment. Branded residences come with the benefit of having reputed and established partnerships that have been time-tested and trusted by customers and a loyal following. It differs from uber-luxury projects by having the enhanced value addition that a global brand offers, thus escalating its premium offering and in turn reaping better returns,” he said, adding that partnering with highly sought-after global brands helps maintain momentum in demand and interest.
Industry executives observe that interest is coming from both investors and end-users because Covid-19 and the Expo 2020 have propelled the real estate landscape in Dubai toward being one of the most respected and preferred destinations to live and work, as well as invest in. As per Savills analysts, the strong domestic and international supply of buyers searching for trophy assets with lock-up-and-leave potential have boosted the growth of branded residential schemes in Dubai over the past decade.
Increasing brand collaborations, continued demand for luxury, aspirational demands of the middle class, wellness trends, and the need for vertical lifestyle communities will drive greater demand. The sector will continue to evolve with the changing preferences of buyers and investors. With a strong commitment to the segment of properties by developers and brands alike, branded residences are forecasted not to slow down anytime soon. “The UAE has been known to be a breeding ground for new and unique ideas, as well as traditionally rooted in brand loyalty. Dubai in particular has the highest volume of branded residences. As a developer, we can vouch for this impressive demand for branded residences and are confident that this trend will continue far and beyond in the near future,” added McLoughlin.
