According to recent research, Dubai has the highest concentration of branded residences in Europe and the Middle East combined, with both ready and off-plan branded apartments selling for eye-watering prices. Branded residences have become one of Dubai’s most talked-about real estate segments.
The development comes amid luxury automaker Bugatti’s announcement in May 2023 about collaborating with UAE-based real estate developer BinGhatti to build the USD 204 million Sky Mansions.
This came after an apartment with the Jumeirah Marsa Al Arab brand was sold for USD 114 million, shattering the previous record for a finished apartment established by a Bulgari property on Jumeirah Bay Island for USD 33 million.
According to a Savills analysis, Dubai has the most significant concentration of branded residence schemes in the regions of Europe, the Middle East, and Africa taken together, while significantly outpacing London, the second-biggest market. By 2030, this figure is predicted to rise by about 120%.
Ziad El Chaar, the CEO of Dar Global, the international division of Saudi Arabia’s Dar Al Arkan listed on the London Stock Exchange, told Zawya that his company sold such homes to 40 different nationalities, with most of their buyers belonging from the high-net-worth (HNWI) population category.
With collaborations with Missoni, Elie Saab, Pagani Automobili, Versace, Dolce&Gabbana, and Automobili Lamborghini, as well as developments in Dubai, Doha, and Muscat, as well as in Spain and Bosnia, Dar Global’s portfolio has a strong emphasis on Italian luxury brands.
El Chaar observed that the project, the brand involved, and the location all significantly impact interest. He claimed that lifestyle choices were driving the luxury property uptakes rather than nations, with clients utilizing the houses as one of two or more residences.
It’s a lifestyle that has evolved from the limits of the COVID epidemic, especially with the flexibility of working from anywhere in the world, the official added.
“Many of our clients choose to spend half their time in their home country and then continue to work in another city for the remaining part of the year,” El Chaar said.
By the 2022 end, there were 71 branded residence property plans in Dubai, with 13 more added during the year, according to data from Morgan’s Realty’s recent study on branded residences.
AED 2,221 was the average price per square foot for nonbranded properties, while AED 3,143 (USD 855.82) was the average price for branded dwellings.
Compared to non-branded buildings, Jumeirah Bay Island has the highest costs for branded residences, at AED 9,148 per square foot instead of AED 3,893 per square foot.
The research stated that branded properties got sold in the Jumeirah Village Circle at an average cost of AED 1,215.
According to Nikita Kuznetsov, CEO of Metropolitan Premium Homes, Italian investors, particularly those linked to companies like Cavalli and Bulgari, are drawn to the homes.
He said that Dubai’s developing luxury real estate market had helped the branded residential market achieve “considerable traction,” and that it had remained robust in the face of uncertainty and change on a global scale.
Charlie Bannan, Director of Sales at Haus & Haus, a different real estate agency, highlighted data demonstrating that there have been spikes from particular markets trying to buy property in Dubai.
While the number of customers from Western Europe increased from 2022 first quarter to the first three months of 2023 by 5.79%, as the number of buyers from specific nationalities climbed significantly.
He also said the number of German, Italian, and British buyers climbed yearly by 100%, 57.14%, and 28.81%, respectively.
“We noticed the largest rise in purchasers from Ukraine (333.33%), Lebanon (300%), Russia (266.67%), and Australia (233.33%) outside of Western Europe,” the official concluded.
Image Crefits: Bugatti