Sunday 23 June 2024

Branded homes driving Dubai luxury property market, says expert

DUBAI, March 27, 2023

Dubai’s branded residential market continues to deepen, with 61% of off plan apartment sales in the city during 2022 linked to branded residential developments according to the latest analysis by global property consultancy, Knight Frank.
Knight Frank points to a slew of new branded residential operators entering the market, which is helping to satisfy demand from international buyers and investors for luxury homes in the city.
Jaidev Menezes, Regional Vice President of Mixed-Use Development (EMEA) at Marriott International said: "Marriott International operates three branded residences in Dubai across Bvlgari, St. Regis, and W. We have announced eight additional branded residences in Dubai which span the brands of The Ritz-Carlton, St. Regis, W, and Marriott, with more to come!"
"The growth of the branded residences portfolio is fueled by developer and purchaser demand for our well-established luxury and premium brands and our global portfolio of 225+ projects. We continue to see very strong demand across the UAE for standalone branded residences as well as mixed-use or co-located projects," he stated.
Dean Foley, Associate Partner – Residential Project Sales & Marketing, said: "The branded residential sector has grown exponentially across Dubai over the last few years. Buyers are seeking out the best buildings with high levels of service and amenities and the stability and security offered by leading, recognised brands managing the residences."
"We recently launched The Ritz-Carlton Residences in Business Bay, Dubai and demand has been exceptionally strong from a variety of buyer nationalities, including buyers from Europe, Russia and Asia," he noted.
Faisal Durrani, Partner – Head of Middle East Research at Knight Frank, said: "Business Bay has been one of the best performing apartment submarkets in Dubai over the last two years, with a 25% rise in average transacted prices. Excellent transport infrastructure, including easy access to the city’s key business hub at the DIFC has resulted in Business Bay experiencing stronger price rises than Dubai Marina, for instance, where values are up 9% in the last two years."
"Business Bay is also 35% cheaper than Downtown and is attracting the attention of new-to-Dubai branded residential operators, including the likes of the Ritz Carlton, and Mama Shelter and Mr. C, albeit the latter are further up the canal," he noted.  
"These residences offer access to a  luxury lifestyle that is now synonymous with Dubai and luxury branded residential operators such as the Ritz Carlton, Bvlgari, Dorchester Collection, and the Four Seasons are all moving to capitalize on the demand for high end homes in Dubai," he noted. 
Durraani pointed out that the depth of demand for such homes is reflected in the achievement of a record AED13,800 per sq ft for a Bvlgari Lighthouse apartment on Jumeirah Bay Island.
As per Knight Frank’s research, branded residential property sales topped AED 25.4 billion in 2022, representing an 80% increase on 2021. 
Wth 219 home sales at over $10 million, Dubai emerged as the 4th busiest ultra-prime market last year behind New York (244), Los Angeles (225) and London (223), it added.-TradeArabia News Service


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