Demand for branded residences in Dubai is expected to remain strong as wealthy buyers continue to boost spending amid a boom in the real estate sector, according to developers and analysts.
Dubai, the commercial and tourism hub of the Middle East, is developing a number of branded residential projects in partnership with hotels, fashion and automotive brands, such as Bugatti, Pagani and Mercedes-Benz.
“The demand (for branded residences) is there and is growing year-on-year,” Haider Tuaima, director and head of real estate research at ValuStrat told The National. “This was probably the third or fourth year, since Covid- 19 that the demand for high-end luxury properties continues to grow.”
Branded residences refer to property developments that carry the stamps of iconic brands.
The business provides developments with its branding, services and amenities, according to global real estate consultancy Knight Frank.
Often – but not always – branded residences will sell for a premium above their non-branded counterparts.
High-net-worth-individuals are investing in the branded residences as they “would like to have something that is managed or that is branded, or that is associated with the brand, in order to ensure that every time they visit the country or they visit their property, it's always at a high standard and well maintained and well managed.”
Branded residences also offer investment opportunities for buyers as property prices continued to rise across the UAE amid government initiatives and overall growth in the economy.
Prices of $10 million-plus homes in Dubai grew at one of the fastest rates globally, as overseas demand for prime residences in the emirate continues unabated.
Dubai’s prime residential market, which includes The Palm Jumeirah, Jumeirah Bay Island and Emirates Hills, saw prices grow by more than 26 per cent last year, property consultancy Knight Frank said in a report in April.
“The main drivers for branded residences are prestige, brand identity, international appeal, being part of the brand’s global hospitality network, superior levels of service, design, furniture packages, finishes along with investment potential through premiums and rental pools,” Prathyusha Gurrapu, head of research and consulting at Cushman & Wakefield Core, said.
“Typically, branded residences command price premiums of about 25-30 per cent compared to non-branded residences of similar build quality," she said.
Branded residences in Dubai are currently transacted at an average of around Dh6,500 ($1,769.9) per square foot, with pricing influenced by factors such as location, waterfront or beach access or views, brand associations, service levels and concepts, she added.
Currently, there are a number of branded residences that are being constructed in Dubai. These include Armani Beach Residence at Palm Jumeirah with 53 units, Cavalli Casa tower at Dubai Marina with 436 units, Mercedes-Benz Places with 150 units at Downtown, Bugatti Residence at Business Bay with 182 units, and Bulgari Lighthouse with 31 units at Jumeirah Bay.
The starting unit price at Bulgari Lighthouse is Dh64 million, while the starting price at Bugatti Residence is Dh19 million, according to Knight Frank data. Mercedes-Benz Places, which is being developed by Binghatti Properties, is being sold starting at Dh8.8 million per unit.
Armani Beach Residence by Arada is being sold at a starting price of Dh21 million per unit.
"Branded residence as an asset class is enjoying sustained growth across the world, with markets in the Middle East, specifically Dubai witnessing a significant rise in demand, fuelled by UAE’s global reputation, appealing lifestyle, safety, and strong investment potential. Dubai also boasts the highest inventory of branded residences compared to any other global city," Ms Gurrapu, said
More than 4,600 branded units are expected to be delivered in Dubai in the next five years, with more projects in the pipeline, according to Knight Frank.
Damac, as well as Dar Global, said they are planning to launch new projects amid higher demand from buyers, senior executives at the company said.
Dar Global, which is developing projects in partnership with global brands, including Missoni, Aston Martin, Pagani and W residences, plans to launch another project in the UAE after selling most of its units in its four projects.
"The market continues to be strong and the demand fundamentals have not changed," Ziad El Chaar, chief executive of Dar Global told The National.
"The demand for investing is increasing and the UAE population is increasing at the same time... you still have a lot of people who are still finding their second home in the UAE because they are setting up a lot of businesses in the UAE," he said.
Safety and security is one of the main elements driving people to choose the UAE as a home for themselves and their families, he added.
Global HNWIs are expected to spend $4.4 billion buying Dubai property this year, up 76 per cent compared to last year, says a Knight Frank report following a survey with 317 wealthy people, with an average net worth of $20 million globally and $8 million in the Gulf region.
GCC-based HNWIs are projected to spend $3.1 million buying a house in Dubai, while the global ultra-rich will allocate $36.5 million, on average, on property deals, it said.
The global arm of Saudi Arabia’s biggest developer Dar Al Arkan this month launched a beachfront residential community worth $250 million on Al Marjan Island in Ras Al Khaimah, in partnership with British luxury brand Aston Martin.
Damac Properties is also looking to build new projects focusing on branded residences amid higher demand. It is currently developing branded residential properties in Dubai in partnership with brands such as Cavalli and Swiss jewellery brand de Grisogono, which it acquired in 2022.
"We will continue to serve this demand and enrich our portfolio with branded residences across key locations in Dubai," Mohammed Tahaineh, general manager of projects at Damac, said.
He expects an "exponential rise" in demand for branded properties over the next four years as investors in the UAE increasingly seek high-end real estate.
"We have seen the market mould towards this trend, supported by reports that indicate that Dubai is going to see the number of branded residences double over the next five years."
The company's buyers include a mix of investors, home seekers, and HNWIs from diverse markets, including the US, Europe, India, China, and Russia, he said.
EMIRATES'S%20REVISED%20A350%20DEPLOYMENT%20SCHEDULE
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
UAE cricketers abroad
Sid Jhurani is not the first cricketer from the UAE to go to the UK to try his luck.
Rameez Shahzad Played alongside Ben Stokes and Liam Plunkett in Durham while he was studying there. He also played club cricket as an overseas professional, but his time in the UK stunted his UAE career. The batsman went a decade without playing for the national team.
Yodhin Punja The seam bowler was named in the UAE’s extended World Cup squad in 2015 despite being just 15 at the time. He made his senior UAE debut aged 16, and subsequently took up a scholarship at Claremont High School in the south of England.
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
Honeymoonish
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Director: Wes Anderson
Starring: Bryan Cranston, Liev Schreiber, Ed Norton, Greta Gerwig, Bill Murray, Jeff Goldblum, Scarlett Johansson
Three stars
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
Abu Dhabi Equestrian Club race card
5pm: Abu Dhabi Fillies Classic (PA) Prestige; Dh110,000; 1,400m
5.30pm: Abu Dhabi Colts Classic (PA) Prestige; Dh110,000; 1,400m
6pm: Maiden (PA); Dh80,000; 1,600m
6.30pm: Abu Dhabi Championship (PA) Listed; Dh180,000; 1,600m
7pm: Wathba Stallions Cup (PA) Handicap; Dh70,000; 2,200m
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Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
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Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
The%20specs
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In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
UAE currency: the story behind the money in your pockets
Graduated from the American University of Sharjah
She is the eldest of three brothers and two sisters
Has helped solve 15 cases of electric shocks
Enjoys travelling, reading and horse riding
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What is tokenisation?
Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Tips to keep your car cool
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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
UAE currency: the story behind the money in your pockets
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
