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“Dubai Branded Residences Poised for Exponential Growth, Consultants Predict”

Dubai Branded Residences Poised for Exponential Growth, Consultants Predict

Dubai’s luxury real estate sector is on the cusp of a significant expansion, with consultants forecasting a doubling in the number of branded residences over the next five years. According to a recent report, the emirate is set to witness a surge in branded residential projects, driven by robust economic momentum and sustained investor interest in opulent properties.

Currently, Dubai boasts 51 branded residences projects, featuring renowned hotel brands and emerging entrants from various industries, including automotive, fashion, and design. Global Branded Residences, a property consultancy, anticipates the launch of 70 additional projects by 2028, with iconic locations such as Downtown Dubai, Business Bay, Dubai Marina, and JBR serving as prime destinations for these developments.

Exploring Dubai’s Allure for Branded Residences The allure of Dubai for branded residences stems from several factors, including ample available land and flexibility in design and construction. Riyan Itani, founder and director of Global Branded Residences, highlighted Dubai’s appeal as a relatively new market, offering developers the freedom to execute projects on a scale unmatched by historic European cities or bustling metropolises like New York.

Branded residences, distinguished by their association with esteemed brands from fashion, lifestyle, and automotive sectors, offer a unique value proposition to investors. These properties blend luxury living with top-tier services and amenities, attracting affluent clientele seeking exclusivity and prestige.

A ‘Win, Win, Win’ Model for Developers Developers find branded residences particularly appealing due to the “win, win, win” model they offer. Despite incurring a premium to align with renowned brands, developers reap significant benefits through higher sale values and profit margins. Itani emphasized that while construction costs may escalate marginally, the subsequent increase in sale values by 25 to 35 percent amplifies developers’ returns, making branded residences a lucrative investment avenue.

Dubai’s Resilient Property Market Amidst the buoyancy of Dubai’s property market, branded residences have demonstrated resilience even during challenging economic conditions. Itani noted that these projects outperform non-branded residences, primarily due to their appeal to buyers unaffected by market fluctuations. The safety and security of branded residences’ delivery process, coupled with the financial stability of their buyers, contribute to their sustained success, even during adverse market cycles.

Future Outlook and Expansion Plans Sharjah-based developer Arada expressed confidence in the future prospects of branded residences, citing Dubai and Sharjah’s growing appetite for luxury living. Rosa Piro, senior business development director at Arada, highlighted the favorable reception received for their branded residences projects, indicating strong investor interest. Piro emphasized plans to introduce additional branded projects in Dubai and Sharjah, reflecting the developer’s bullish outlook on the branded residences segment.

In conclusion, Dubai’s branded residences sector is poised for remarkable growth, fueled by escalating demand for luxury properties and the emirate’s conducive business environment. As global brands continue to make inroads into Dubai’s real estate landscape, investors can expect an array of upscale residential offerings, redefining the city’s skyline and reinforcing its status as a global luxury destination.

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