Ishrath Jaigirdar
Dubai, UAE
With nearly 140 branded residences complementing its towering skyline, Dubai has retained its global position as a leading market for branded homes. Comprising both completed and launched developments, Dubai’s portfolio of 140, though a relatively smaller portion of the entire real estate stock, reflects the potential of the real estate sector to attract global luxury brands and cater to the choices of international clients. The city has attracted names like Armani, Lamborghini, and Bulgari to foray into its thriving market, contributing distinctive architecture to the cityscape.
Branded residences are homes developed by renowned hotel brands or developers in collaboration with prominent designers, appealing to luxury buyers and investors alike. They first emerged in New York City in the 1920s, offering exceptional living experiences with exclusive lifestyle amenities and services. Bearing the mark of a brand, these residences are considered a symbol of luxury in Dubai.
Based on a study by Savills Global Residential Development Consultancy, there are 740 completed branded residences worldwide, with a further 790 anticipated by 2031 across 100 countries. The global demand is expected to double over the next seven years, with the total number of developments projected to grow by 100 percent. The Middle East is expected to expand by 270 percent during this period, underscoring its global appeal.
Dubai’s notable number of launches particularly exhibits this forecast. The first half of 2024 saw 17 launches in Dubai with 5,592 units sold at Dh28.8 billion, Morgan’s International Realty reported. The value rose by 25 percent year-on-year, demonstrating growing demand in the emirate.
Experts have attributed this growth to various factors. Apart from being designed and developed by brands, these residences hold more value in terms of higher premiums. As per Morgan’s International Realty, on average, property buyers pay 69 percent more per square foot for branded residences compared to non-branded properties within the same locations.
Andrew Cummings, head of residential at Savills Middle East, said, “Investors in branded residences often benefit from a price premium over non-branded properties. According to Savills’s latest study, the global average premium is 30 percent, though this varies by location, brand, and scheme type. In the Middle East and Africa, some schemes exhibit premiums exceeding 40 percent. This premium reflects the enhanced value associated with the brand’s reputation, quality standards, and lifestyle offerings. Additionally, the association with a reputable brand can help protect asset prices, providing resilience against market fluctuations.”
As the influx of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) into Dubai increases, more developers are joining the bandwagon to build elevated lifestyle-focused homes. While hotel-branded residences, such as The Address and Ritz-Carlton, dominate the local market, property developers are teaming up with lifestyle brands to strengthen their portfolios and enrich the market supply in response to accelerating demand.
As per Provident Real Estate, branded properties assure buyers of high standards in terms of quality and service, eliminating guesswork. They incorporate exclusive amenities that the brand promotes, attracting investors. Over the past five years, branded homes have jumped 122 percent, as reported by Global Branded Residences (GBR), with a forecast of sustained growth in the future.
A Provident Real Estate spokesperson stated, “GBR data indicates that the development of branded properties in Dubai will continue to expand. Specifically, standalone properties (without a hotel component) are expected to increase, constituting 54 percent of the market. These developments will account for 78 percent of all new projects in the next four years. This growth in Dubai’s branded residences market surpasses the global projection, which is 41 percent.”
In recent years, several brands announced collaborative projects in Dubai. The most notable ones are:
- Armani Beach Residences: Developed by Arada, it was launched early this year on Palm Jumeirah. The developer has tied up with Japanese architect Tadao Ando and fashion figure Giorgio Armani to build 53 boutique units ranging from two- to five-bedroom apartments to penthouses and presidential suites.
- Karl Lagerfeld Villas: The project, developed by Taraf in Meydan, will deliver a collection of five- to seven-villas, each showcasing Art Deco details and 18th-century-inspired aesthetics.
- Mercedes-Benz Places: A 341-metre-tall Mercedes-Benz branded tower will be built in partnership with real estate developer Binghatti in Downtown Dubai. It will be 65 storeys tall and offer two- to four-bedroom apartments and penthouses.
- Bugatti Residences: The car manufacturer’s debut project is built in collaboration with Binghatti in Business Bay and will feature 182 residences.
- Bulgari Lighthouse: Located on Jumeirah Bay Island, The Meraas-Bulgari joint development is designed by architectural firm Antonio Citterio Patricia Viel and features four- and five-bedroom penthouses.
- Damac Altitude de Grisogono: In collaboration with De Grisogono, The 38-storey Damac tower will offer studios, one- to three-bedroom apartments and two-bedroom duplexes, with views of Dubai Canal, Burj Khalifa, and the cityscape.
- Franck Muller Aeternitas Tower: Poised to be the the world’s tallest residential clock tower, this collaborative venture between watchmaker Franck Muller and developer London Gate comprises 649 luxury units with one- to four-bedroom configurations across 160 floors.
- Orla by Dorchester Collection: Dorchester Collection features in this Omniyat-built development. It is composed of two- to four-bedroom apartments and penthouses.
- Damac Bay by Cavalli: Located in Dubai Harbour, the waterfront branded property is a collaboration between Damac Properties and luxury brand Cavalli. Residences range from studios to three-bedroom layouts.
- Burj Binghatti Jacob & Co Residences: The 116-floor tower in Business Bay is built by Binghatti Developers and bears the mark of luxury watchmaker Jacob & Co.
International hotel chains have also collaborated with local developers to contribute to Dubai’s branded property stock:
- Address Residences The Bay: The complex developed by Emaar under the brand of Address Hotels and Resorts on Jumeirah Bay Island. It comprises one- to three-bedroom apartments, three- and four-bedroom penthouses, and three-bedroom townhouses.
- Six Senses Palm Jumeirah: Composed of a hotel and 162 branded residences, the mixed-use development is built by Select Group and Six Senses Hotels Resorts Spas on Palm Jumeirah.
- Kempinski Residences The Creek Dubai: Built by Swiss Property and Kempinski Hotels in Al Jaddaf, it features one-bedroom apartments to four-bedroom duplexes in addition to recreational amenities
- Regis The Residences: Emaar Properties and St. Regis Hotels & Resorts have partnered for this Downtown Dubai development that offers one- to three-bedroom apartments.
- Atlantis The Royal Residences: Atlantis Resorts has collaborated with developer Kerzner International to build Atlantis The Royal Residences features two- to five-bedroom residential options like Sky Court, Penthouses, and Green Suite.
- Beachgate By Address: Another Address Hotel and Resorts branded project is developed by Emaar on Palm Jumeirah offering two- to four-bedroom apartments and penthouses.
- Palazzo Versace Residences: Built by Enshaa, The Versace Residences at the five-star Palazzo Versace is composed of two- to four-bedroom residences with Versace Home Collection furnishings.
- BV Residences (Bulgari Resorts and Residences): Comprising 173 residences, 15 mansions, and 100 resort rooms, the 1.7 million square feet development is a joint venture by Meraas and Bulgari Hotels on Jumeirah Bay Island.
- Ritz Carlton Business Bay: Built by developer Khamas Group and Ritz Carlton, the 18-storey tall Ritz Carlton Business Bay features 66 one- to three-bedroom apartments, four-bedroom villas, and three-bedroom penthouses.
- Four Seasons Private Residence Dubai: The Four Seasons Hotel branded property is developed by H&H Development. Located in DIFC, the project offers 50 units and two penthouses
- Palm View by Avani Hotels & Resorts: Palm Views is a ready-to-move-in development in Dubai Media City by Binghatti Properties in partnership with hotel brand Avani Hotels and Resorts.
Each of these luxe properties will showcase the design expertise of each brand while adding significant value to the developer’s portfolio.
Another high profile project is set to be launched in Dubai. Dar Global, an international property developer, will launch Trump Tower in association with Trump Organisation. The development will house Dubai’s first Trump-branded hotel. Estimated to exceed a development value of Dh2 billion, the tower is Trump Organistation’s second venture following its first project, an international golf club that opened in 2017.
The Trump International Golf Club was built in partnership with Damac Properties, which was then headed by Ziad El Chaar as Managing Director. After his transition into Dar Global, the international arm of Saudi’s mega property builder Dar Al Arkan, as CEO, Trump Organisation collaborated on projects in Oman, UAE and KSA. It launched two ventures in Riyadh and a SAR 2 billion (Dh1.96 billion) Trump Tower in Jeddah, just a week before the Dubai project was announced this month.
The back to back announcements strengthen the close-knit relationship between Dar Global and Trump Organisation, especially at a time when Donald Trump will soon assume the role of US president. The Trump branded projects will be instrumental in bolstering Dar Global’s appeal to international investors.
The predicted growth in Dubai’s branded residential sector reaffirms the city’s leading position globally. Coupled with enhanced lifestyle, accessibility, security, and efficient infrastructure, developers and investors see Dubai as a lucrative real estate destination.
Ends
Also read: Demand for affordable homes shoots in Dubai
