Dubai developers bring branded apartments to the market to meet high demand
The Dubai real estate market is seeing a surge in demand for off-plan properties, especially from foreign buyers, and developers are responding by bringing more branded residences to the market with the help of well-known brands. These include One&Only, St. Regis, Fairmont, Pagani, Bugatti, Aston Martin, Elie Saab and Cavalli.
According to the latest strategy, branded residences can significantly increase a project’s chances of finding a buyer, especially in a market where new off-plan projects are unveiled every week. This approach has proven successful in attracting both local and foreign wealthy buyers and jetsetters to invest in the Dubai real estate market.
Mark Willis, CEO of Fairmont Hotels, commented on the growing popularity of branded residences in Dubai, stating that this trend is here to stay. Fairmont Hotels currently operates 15 branded residences worldwide, with a further 21 planned, two thirds of which are in the Middle East. Willis confirmed that branded residences are in high demand globally, and Fairmont’s upcoming pipeline will include a branded residence component in over 70% of projects.
Consultancy Savills published a study on buyer attitudes towards branded homes and found that a strong domestic and international supply of trophy-hunting buyers has fueled the growth of branded residential projects in Dubai over the past decade. This demand for branded real estate is not new, but the post-Covid buying boom has given it more attention.
Branded apartments in Dubai command a significant price premium of 25-35% over non-branded projects. Sean McCauley, CEO of Devmark Group, explained that buyers have more confidence in branded properties as the brand provides additional credibility and long-term profitability. Branded homes also tend to sell faster, and buyers feel that they are more resilient in the long run and have a better chance of maintaining resale value due to limited supply.
Dubai is expected to outpace the second most active market, South Florida, by around 30% and is expected to be a leading global destination for branded apartments. The current trend of introducing branded apartments is expected to continue as developers seek to meet the growing demand from foreign and local investors for prestigious properties in Dubai’s booming real estate market.
Source: www.propertynews.ae
