Dubai’s branded residential development sector continues to flourish, even rivalling major global markets such as Miami and New York for completed and pipeline projects, spurred by the investor demand for fully integrated service offering, complete with a personalised concierge service in a landmark setting, said an expert.
Following a record-breaking post-lockdown year in 2021, the real estate market in Dubai continues to perform fantastically well in 2022, especially in the prime and super-prime markets, within which Dubai’s branded residential development sector continues to flourish, as the emirate’s love affair with branded residential real estate continues, remarked Dean Foley, the head of Residential Project Sales & Marketing at Knight Frank Middle East.
"Residential development across the emirate has flourished since 2010 with the Armani Residences Burj Khalifa first in the market – since then, we have seen an explosion of this asset class with strong demand from HNW and UHNW buyers from across the globe," stated Foley.
A veteran in the branded real estate development market, Foley has been spearheading Knight Frank Middle East’s own residential project sales and marketing team since he joined the firm in Q3 2021.
"Such has been the rate of expansion that Dubai is now a global leader rivalling Miami and New York for completed and pipeline projects. Over the last 12 months, we’ve seen launches from Four Seasons, The Ritz-Carlton, St. Regis, W and Six Senses, cementing Dubai’s popularity and boosting confidence with hotel operators, developers, owners and buyers," he stated.
In Knight Frank’s recently published Branded Residential Overview Dubai 2022, the property expert has investigated key trends that are helping to shape the emirates love affair with branded residential property.
Dubai has evolved to become a key global hub for branded residences in the last 10 years, however the US, led by Miami, continues to have the highest concentration globally, stated the report.
"In Dubai we now have two clear concentrations of branded residential property: Central Dubai (stretching outward from Downtown Dubai, along Dubai Canal and out to Jumeirah 1) and New Dubai, encompassing The Palm Jumeirah, Dubai Marina and Jumeirah Lake Towers," explained Foley.
According to him, another major trend being witnessed is the developers widening their net to attract new buyers and investors.
"There has been a strong shift towards creating more investment grade product, alongside traditional branded residences that appeal to global UHNWI clientele, with developers recognising the investment potential in branded residential products," said Foley.
Another trend, he stated, was that of lifestyle brands making their mark in Dubai market.
"Historically, brands such as Four Seasons and Mandarin Oriental, along with other established brands under Marriott and Accor have dominated the branded residential market landscape, but more recently, the likes of Porche, Bvlgari, Cavalli and Elie Saab, all of which have swathes of fiercely loyal followers have joined the race to provide ultra-luxury branded residential homes," he explained.
On the new branded residential neighbourhoods mushrooming across the emirate, Knight Frank said with Downtown Dubai and The Palm Jumeirah having very limited development opportunities, it is driving developers to look to the peripheries of these locations.
"As the Dubai market continues to evolve and mature, operators are moving into areas such as Business Bay, where Missoni, Mama Shelter, Pagani and the Dorchester Collection are all establishing a presence. Indeed, the arrival of these prestigious brands has contributed to the overall increase in residential demand in Business Bay, which recently joined the exclusive $10 million home club in Dubai, as we reported previously," explained Foley.
According to him, the Covid-19 pandemic brought about an increased sensitivity to space, investment and safety.
"For the global elite, branded residences provides large and opulently serviced homes under the strength and expert care of a leading luxury brand, in addition, the UAE Government acted with laser guided efficiency to ensure disruption was kept to a minimum, its population vaccinated and its economy open for business – these three pillars are what’s largely driven the branded real estate landscape over the last 12 months," he added.-TradeArabia News Service