_ Dubai’s love affair with branded residential real estate

1. Dubai one of the top three branded residential markets globally: Dubai has evolved to become a key global hub for branded residences in the last 10 years, however the US, led by Miami, continues to have the highest concentration globally. In Dubai we now have two clear concentrations of branded residential property: Central Dubai (stretching outward from Downtown Dubai, along Dubai Canal and out to Jumeirah 1) and New Dubai, encompassing The Palm Jumeirah, Dubai Marina and Jumeirah Lake Towers.

2. Developers widening the net to attract new buyers and investors: There has been a strong shift towards creating more investment grade product, alongside traditional branded residences that appeal to global UHNWI clientele. Developers have recognised the investment potential in branded residential products

3. Lifestyle brands making their mark: Historically, brands such as The Four Seasons, Rose Wood, the Ritz Carlton have dominated the branded residential market landscape, but more recently, the likes of Porche, Bvlgari, Cavalli and Ferrari, all of which have swathes of fiercely loyal followers have joined the race to provide ultra-luxury branded residential homes.

4. “New” branded residential neighbourhoods: Downtown Dubai and The Palm Jumeirah have very limited development opportunities, which is driving developers to look to the peripheries of these locations. As the Dubai market continues to evolve and mature, operators are moving into areas such as Business Bay, where Missoni Mama Shelter and the Dorchester Collection are all establishing a presence. Indeed, the arrival of these prestigious brands has contributed overall residential demand in Business Bay, which recently joined the exclusive $10 million home club in Dubai.

5. Middle East brands spread their wings: Luxury residential developers from Dubai are now setting their sites on markets further afield, with DAMAC, for instance, recently securing a site in Miami, while also progressing their Versace branded scheme in London’s Nine Elms.

6. Fully integrated service offering to remain a top draw: Privacy and security have always been key factors for buyers, but a fully integrated service offering, complete with a personalised concierge service in a landmark setting, offered by a reputed brand is what buyers at the top end of the market continue to actively seek out and are happy to pay a premium for.

7. Buyers hungry for more: Globally, buyers are taking a closer look at their living arrangements in the wake of the pandemic and when it comes to the branded residential market, buyers and investors are hungry for every more luxurious amenities and lifestyle offerings that is driving the emergence of some of the world’s most exciting branded residential developments in cities such as Dubai – Kempinski’s Floating Palace, off the coast of Jumeirah Beach Residence, which is set to open in 2024 is one such key example.

To discuss the Dubai Branded Residences market, please contact Dean Foley | Head of Residential Project Sales & Marketing