UAE: The Dubai market is set to gain more than 1500 luxury branded residence units in 2020.
The latest to open is the 116-key Andaz Dubai The Palm opened, which opened its doors to guests in December. The property features 300 metres of private beach, and is made up of 25 studio, 66 one-bedroom and 26 two-bedroom apartments ranging from 46 to 145 square metres.
It follows the October opening of the Royal Atlantis Residences, also on The Palm Jumeirah. Other recent announcements of branded residences in Dubai include the Tonino Lamborghini Residences in Meydan by Orient Pearls and Damac Towers by Paramount, which is opening in Business Bay.
Paul Tostevin, director of Savills World Research, said: “As market conditions and buyer preferences evolve, there is huge potential for the branded residences sector in Dubai. Branded property is positioned to stand out in more challenging market conditions.”
Declan King, managing director and group head real estate at ValuStrat, said an estimated 1,507 branded units are expected to come into the Dubai market this year.
The current ready stock of luxury branded real estate in Dubai includes Armani Residences at Burj Khalifa, The Address Residences, Trump Estates, Palazzo Versace, Kempinski, Paramount, Nikki Beach Residences, Ritz Carlton, Fairmont Residences The Palm, Rixos, Anantara and Bvlgari Residences in Jumeirah Bay. The pipeline of branded serviced apartments will include Milano Giovanni JVC, The Residences JLT (Vivanta by Taj), Vida Residence The Hills, The Address Residence Sky View and The Address Fountain View 1.
Research by ValuStrat reveals that branded real estate enjoys both higher capital values and improved recurring income from leasing and room rates. “In a region often obsessed with brands, from coffee to cars, real estate is no different. Consumers pay more for property that has the cache of a premium name,” explains Kings. “Property buyers spend more at initial purchase, and tenants pay more to stay. Demand could stem from individuals looking for both an attractive investment as well as a desirable lifestyle. Branded real estate could also provide a certain level of confidence for buyers – especially in emerging and maturing markets – who don’t particularly know who to trust and place their money for investment.”
To find out the latest about the MEA real estate and hospitality market, don’t miss the 2020 Urban Living MEA event, which takes place in Dubai on September 21.</p
