Branded Residences Booming in Dubai
The number of branded residential projects rising in Dubai jumped in the second-half of 2022, and more are on the horizon to cater to booming demand from a cohort of international high-net-worth buyers. By the end of last year, there were 71 branded residence schemes in Dubai, including a host of high-end brands from Lamborghini and Armani to Bulgari and The Four Seasons. The total was 13, or 22%, more than the first half of the year. A further 42 branded residences are currently under construction. “Dubai has become a hub for branded residences over the past decade, and it will continue to dominate international real estate markets due to the significant increase in demand from buyers all over the world,” quoted Elias Hannoush, CEO of Morgan’s International Realty. Not only are the sheer quantity of branded residences on the up in the city, so too are their values. The average price per square foot for branded residences increased 14% in the second half of the 2022 compared to the first half, and at AED 3,143 (US$856) per square foot, buyers were faced with a typical 37% premium for branded residences compared to non-branded residences in the same area. The Bulgari Resort and Residences, located on Jumeirah Bay Island, ranks as the most expensive branded development in Dubai, with a price per square foot of AED 9,148. The project is categorized as a residential development adjacent to a hotel, which is the most common type of branded residence, accounting for 31% of the branded offerings in Dubai. However, the new schemes introduced to the market comprised mostly residential developments with hotel management and standalone residential developments with brand association, ‘both of which have seen a surge in popularity,’. On the horizon, we also anticipate an increase in eco-friendly luxury schemes, Hannoush said, adding that “we may witness the birth of tech-branded residences in the city, bringing cutting-edge technology to residences.”
Tags : residential projects Dubai demand international buyers