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.
Dean Foley – Head of Residential Project Sales & Marketing at Knight Frank Middle East commented “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. 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.
In Knight Frank’s recently published Branded Residential Overview Dubai 2022, they have investigated 6 key trends that are helping to shape the emirates love affair with branded residential property.
1. Dubai one of the top three branded residential markets globally
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. 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.
2. Developers widening the 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.
3. Lifestyle brands making their mark
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.
4. “New” branded residential neighbourhoods
Downtown Dubai and The Palm Jumeirah have very limited development opportunities, which 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.
5. Fully integrated service offering to remain a top client attraction
Privacy and security have always been key factors for buyers, but a fully integrated service offering, complete with a personalised concierge service in a landmark setting, offered by a reputed brand is what buyers at the top end of the market continue to actively seek out and are happy to pay a premium for.
6. Buyers hungry for more
Globally, buyers are taking a closer look at their living arrangements in the wake of the pandemic and when it comes to the branded residential market, buyers and investors are hungry for even more luxurious amenities and lifestyle offerings that are driving the emergence of some of the world’s most exciting branded residential developments in cities such as Dubai –
Dean continued “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.”
Knight Frank Middle East’s own Residential Project Sales & Marketing team is spearheaded by Dean Foley, who since joining the firm in Q3 2021, has focused on providing clients with a more comprehensive advisory service to optimise projects at concept stage as well as expanding the company's sales and marketing capability significantly, with even more growth expected. Dean himself is a veteran of the branded real estate development market, having over 12 years experience in helping developers realise their project goals and maximising returns to fund large scale mixed-use projects, working across Europe, The Middle East, The Caribbean, Africa and Asia on branded projects under Four Seasons, Fairmont, Raffles, Viceroy and Marriott.