BRANDED RESIDENCES - THE HIGH LIFE

The abundance of branded residences in the city has helped to lift their overall share of all apartment sales to 21.4% in 2021 and 19.2% last year, with sales totalling US$ 6.9 billion (AED 25.4 billion).

POPULARITY RIDING HIGH

As a residential subsector, the who’s who of luxury brands ranging from The Dorchester to the Ritz Carlton and The Four Seasons, to Mama Shelter and Mr. C, the popularity of branded residences as an asset class is high amongst our survey respondents too.

Overall, 52% say they will likely purchase a branded residential property in Dubai this year. This figure rises to 69% for those with a personal wealth of over US$ 10 million.

When it comes to East Asian respondents, an extraordinary 85% (50 percentage points above all other regions) intend to purchase a branded residence in Dubai during 2023.

And the popularity of branded residences is further highlighted by the depth of demand from those who visit Dubai more than once a year, with 87% of this cohort keen to buy a branded home in the city this year.

Filtering by investment motive reveals yet another fascinating trend: 74% keen on an investment purchase would be likely to target a branded residence in Dubai, while a slightly lower 61% would consider a branded residence if buying purely for personal use.

INVESTMENT POTENTIAL

‘High yield / investment potential’ is ranked as the most common reason to make a branded residence property purchase at 58%.

Undoubtedly, with branded residences commanding a sales premium of up to 30% in Dubai their appeal continues to rise. In fact, 63% of HNWI respondents from East Asia cite the ‘high yield / investment potential’ as the main driver for purchasing a branded residence.

‘Prestige’ (53%) and ‘brand identity’ follow closely in second and third place, respectively, as top reasons to want to purchase a branded home in Dubai.

Those worth over US$ 10 million value all branded residential attributes equally (‘brand identity’, ‘services and physical amenities’, ‘high yield / investment potential’), with a slight preference for ‘maintenance and management’ (59%) as well as ‘prestige’ (59%).

Separately, 60% of those frequently visiting Dubai (> once a year) say they would be interested in purchasing a property in a branded residence for the ‘prestige’ factor.