Branded residences are a new trend in Dubai

Branded residences are a new trend in Dubai

As developers in Dubai increase the number of new off-plan projects to meet the still growing demand from overseas buyers, they are increasingly resorting to the help of some well-known names and brands. At first it was Fairmont, St. Regis or One&Only. Then such legendary names as Pagani, Bugatti, Aston Martin, Elie Saab and Cavalli were added.

Thus, it can be noted that in the Dubai real estate market there is an increase in the commitment of both buyers and developers to branded real estate. In this particular scenario, the more name recognition can be associated with a project, the higher its chances of getting a buyer.

Today, international jetsetters and local/regional wealthy people are increasingly becoming clients of developers. Therefore, collaborations with the best-in-class fashion brands and car brands are becoming increasingly important.

The real estate consulting company Savills recently published a report that reflects the mood of buyers in relation to branded residences. According to the report, the increased interest in branded houses is not something new for Dubai real estate. "A strong domestic and international flow of buyers looking for assets to invest "spare" surpluses, with the intention of "buy-close-and-leave", has stimulated the growth of branded housing schemes in Dubai over the past decade," it says.

In Europe, the Middle East and Africa, the number of HNWIs (high-income individuals) has grown by 27% over the past five years, which provides an expansion of the customer base for branded housing schemes. In Dubai, the number of HNWIs increased by 18% in the first six months of 2022 alone.

 

Dubai burst to the forefront of the branded residential sector in the decade after 2010. It is expected that the emirate will demonstrate growth that will make it about 30% more active than the second most active market — South Florida.

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