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Branded Residences in Dubai Offer 100% Higher Rents

Branded Residences in Dubai Offer 100% Higher Rents

As compared to non-branded residences, branded ones in Dubai can command double the rent because of the high demand for units in these projects by high net worth individuals and luxurious amenities.

According to industry executives, there is also a higher potential of increase in prices of luxury and branded homes as compared to the rest of the market.

They also added that since high net-worth individual buyers are coming to Dubai to stay, it is no longer a transitional market and it is the reason why the market seems to be maturing.

Branded residences

Chairman of Allsopp & Allsopp, Lewis Allsopp said that tenants, landlords and investors are aligned on higher rentals for ‘branded residences’.

He added that the well-planned and contemporary living spaces in residential buildings offer luxurious amenities as compared to ‘non-branded’ units in similar locations, thereby commanding higher rents.

In the last few years, there have been a number of branded residences launches in Dubai for meeting the high demand, which has helped it climb to the top spot globally.

Branded residences have been launched by local developers for cashing in on the demand as the wealthy elites of the world are flocking to the emirate.

Some of these developers include Rove, RSG Group, Danube Properties and Binghatti Properties, amongst others.

Greater price increases

Allsopp further said that the branded and prime residences market segment is expected to see a higher level of interest from investors and buyers.

Therefore, these luxury homes are more likely to see price increases than the rest of the real estate market.

He added that it was primarily because of the demand for secondary available readily inventory and the fact that there is limited supply of prime properties scheduled to become available in 2024 in prestigious locations.

Sale prices will continue to go upwards due to these conditions, which will result in sustained capital appreciation in properties in some of the most desirable residential locations in Dubai.

Quality

Data has shown that in the last few years, high-net-worth buyers have been relocating to Dubai from continental European countries, such as the UK, Germany and France.

This is partly because they want to benefit from the lack of real estate tax and it has resulted in skyrocketing prices.

Buyers are heading to Dubai for the retail, cleanliness, value for money and quality. Rather than making money and leaving the emirate, people are choosing to stay for the lifestyle.

Record-breaking sale prices were recorded in Dubai last year, as super-luxury residences were sold for as much as $4,000 per square foot, which marked consecutive year-on-year increases since 2020.

The demand for luxury properties is expected to stay high, as even more buyers are taking an interest in Dubai due to political unrest in some Middle Eastern countries.

According to Lewis Allspop, they expect to continue seeing demand for prime residential properties in 2024.

The sales transactions will continue to record growth, as will rental premiums and capital appreciation, because there is a limited amount of new inventory available for handover.

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