The real estate landscape in the UAE has been transformed significantly due to the emergence of branded residences.
These living spaces are unique because they offer an exclusive lifestyle experience, which blends the comfort of home with luxury hospitality.
The trend
There has been a rise in momentum in this particular trend, not just in Dubai, but globally as well, because people do not just want a luxurious living space.
They also want a curated environment that is a reflection of their personal aspirations and preferences. As a matter of fact, the record of the most expensive unit being sold was smashed by branded residences.
A unit at Bugatti Residences was sold for Dh750 million. This makes it evident that luxury is no longer limited to your dressing closet.
It has spilled over to other areas of life and this also applies to the residences people live in. With the demand for branded residences in Dubai on the rise, more and more developers are focusing on it.
They have accelerated their efforts in coming up with premium offerings that can help them cater to a client base that is more sophisticated than before.
The report
Property advisor Savills published a report this year on branded residences, which revealed that the largest pipeline of branded residences can be found in Dubai.
This is in the EMEA (Europe, Middle East and Africa) region and a 72% growth has been projected in this particular trend.
The number of millionaires, or high net-worth individuals, has recorded a rise of 27% in the last five years due to which the trend of branded residences is expected to record an upward trajectory.
The report from Savills showed that in the EMEA region, the number most branded schemes in the pipeline as well as those that have been completed is the largest in Dubai.
They are expected to grow about 72% in the pipeline region. A number of jewelry and fashion brands have also jumped on the bandwagon and entered into partnerships with UAE’s leading developers.
These include brands like Baccarat, Cavalli, Versace, Bugatti, Fashion TV and de Grisogono.
The developers
The scope of this niche segment has been identified by the developers and they are coming up with exclusive projects to meet the needs of this segment.
Damac Properties in the UAE has become one of the pioneers of the trend, as they have added a series of projects over the last year to their portfolio.
There are also a number of other private developers based in Dubai, such as Danube and Binghatti, which have also jumped on the branded residence bandwagon.
In the last 18 months, Damac, which is the largest private developer, has rolled out 11 branded residential projects in a number of prime regions of Dubai.
Its senior vice-president, Niall McLoughlin, said that customers were looking towards branded residences because they offer a branded lifestyle, along with modern amenities and facilities.
He added that the market in the UAE was a promising one for this segment, as growth could be in three digits.
