Demand for branded residences on the rise as niche trend gains momentum. Private developers Damac, Binghatti and Danube Properties leading the way
29 August 2023, 12:00 AM
30 September 2023, 12:00 AM
Branded residences trend has gained momentum globally and in Dubai, as individuals seek not only luxurious living spaces but also a curated environment that reflects their personal preferences and aspirations. In fact, the branded residences have smashed the record with the most expensive unit ever going on sale for Dh750 million at Bugatti Residences by Binghatti.
People now associate brands with a certain way of life, manicured and with finer choices. Design elements from an international luxury brand in the home have become a statement for one’s own choices and lean towards a more sophisticated consumer trait. Owners today enjoy the prestige that comes with owning a branded residence, typically a tie-up with a luxury brand, and benefit from higher value and yields.
As demand for branded residences in Dubai continues to soar, developers have sketched and accelerated their efforts in providing premium products that cater to a more sophisticated client base.
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.
Dubai’s branded residential market 2023
• Dh25.4 billion in sales in 2022
• 80% rise in sales year-on-year
• Dh11.5 billion historic sales high in 2013
• Dh1 billion mark crossed in 2009, hitting Dh3.1 billion
• 2,000 units coming up in 2023