In a recent research conducted by the real estate consulting firm Savills, Dubai was named the world’s leader for branded housing. According to Savills’ Spotlight on Branded Residences, the industry has expanded by more than 150% over the previous ten years and has shown to be resilient in the face of uncertainty and change on a worldwide scale. Currently, there are 640 schemes, which account for about 100,000 units globally, and by 2027, supply levels are expected to surpass 1,100 schemes.
More than 40 branded housings have already been built in Dubai, and there are more on the way. In terms of hotspots for finished and existing pipeline, South Florida and New York City are in second and third, respectively. The Mag of Life Mansions at the Ritz-Carlton Residences, Creekside, which are each valued at Dh177 million, are among the most recent branded residential announcements in Dubai. In August, Jumeirah Group presented its fourth branded housing in Dubai as a component of the Peninsula waterfront project. Along with the 795-room hotel, Atlantis the Royal Residences is scheduled to debut on Palm Jumeirah the following year.
Branded housing in Dubai looks appealing to HNWIs
According to Swapnil Pillai of Savills Middle East, “brands are expanding their portfolios all over the world and will continue to be driven by wealthy, internationally mobile individuals.” He added that to improve their offering, developers and brands are working together to identify the growth hotspots for high net worth individuals. In terms of the number of HNWIs over the previous five years, North America (53%) and the Middle East (34%), as well as Asia Pacific, saw the largest growth rates (31 per cent). This is consistent with our observations of the strongest growth in the stock of branded homes during the same time period. According to him, the number of high-net-worth households is predicted to increase by 22% in the UAE over the next five years, while wealthy populations are also predicted to increase by 13% in Saudi Arabia, 51% in Kuwait, and 22% in Qatar.
The number of HNWIs is rapidly rising in Dubai
According to a report released in July by management consulting firm Boston Consulting Group, financial wealth in the UAE is increasing quickly and is projected to increase at an even faster rate in the coming years, reaching $1 trillion from $700 billion in 2026 at a compound annual growth rate of 6.7%. The increase in financial and physical assets is fueling the rapid expansion. In 2021, HNWIs contributed about 41% of the UAE’s wealth, and by 2026, that percentage is predicted to rise to 43%.
According to Savills, branded housing development growth in the major cities of Dubai, South Florida, and New York is slowing down even if it is still high as many brands look for expansion prospects in developing cities and resort areas. Savills’ analysis revealed that, on an unweighted basis, the average global premium for branded housing over a comparable non-branded property is 30%.
Branded housing market is flourishing in Dubai
With the opening of the Armani Residences Burj Khalifa in 2010, the first five-star serviced residence in the emirate, the market in Dubai, as the global leader in branded housing, began to flourish. According to a Knight Frank report from earlier this year, there are now two distinct concentrations of branded residential real estate in Dubai: Central Dubai, which includes The Palm Jumeirah, Dubai Marina, and Jumeirah Lakes Towers, and New Dubai, which extends from Downtown Dubai outward along the Dubai Canal and to Jumeirah.
Damac, a luxury residential developer from Dubai, has acquired a site in Miami and is moving forward with its Versace-branded project in Nine Elms, London. Luxury residential developers from Dubai have their sights set on markets further afield.
Atlantis the Royal open for reservations
Atlantis the Royal is officially accepting reservations for March 2023, making it one of the most eagerly awaited new developments in Dubai-the global leader in branded housing. Public reservations for the hotel have started recently, and they can be made starting on March 4. Beginning with the first week, rooms in the first month start at Dh4,066 and increase to Dh4,545 starting on March 19. The price of a hotel in April might reach Dh5,951 per night. The ceremonial opening of the opulent waterfront hotel was postponed from November to late January earlier this month, as it was revealed.
The 43-story cantilevered hotel, designed by New York City’s Kohn Pedersen Fox Associates, will now celebrate its “big reveal” weekend on January 20. From the 55-square-meter Seascape King, which can accommodate three adults and one child or two adults and two children, to the 118-square-meter Sky Pool Villa Suites, which can accommodate three adults or two adults and one child, there are a variety of rooms available. The hotel has opened reservations as well as releasing new interior photos and aerial footage of the exterior.
The massive, 93,000 square meter hotel has a 90-meter rooftop infinity pool with spectacular views of the Mediterranean and the Palm Jumeirah. Along with 17 restaurants and bars, it will also have the biggest jellyfish aquarium in the world, a fire and water fountain show, and other attractions. Several of restaurants are run by famous chefs, including Gaston Acurio, Ariana Bundy, Costas Spiliadis, and Jose Andres. Heston Blumenthal is bringing his restaurant Dinner and Resonance, his first bar, to Dubai. There will also be a Nobu pool and beach club.
