The real estate market in the UAE has been witnessing an exponential increase in the number of luxury branded residences in recent years. This comes as demand continues to rise for high-end properties among local and international buyers alike. A 2022 study by property advisor Savills revealed that Dubai is now ranked number one in the world for branded residences.
And this trend will be apparent throughout 2023 and beyond as the UAE further cements its reputation as one of the most affordable and attractive destinations for luxury living in the world.
Luxury brands have a reputation for quality, excellence, and most of all, relevance. The key to their durability is their ability to maintain a unique identity whilst constantly evolving and transforming in parallel with the wider society. The marked rise in branded residences is testament to the strength of the trust that buyers place in their favourite luxury labels. It also highlights their willingness to invest in property that bears the name, and boasts the value proposition, of prestigious brands.
Due to the associated stature, branded residences are a great investment opportunity as they can provide enhanced resale value. They also provide a potential for investment returns from a managed rental scheme – if the owner chooses not to live in the residence all year round and seeks long-term rental yields.
Whilst Dubai has long reigned supreme as a destination of choice for high- net-worth individuals, we are now witnessing an explosion in interest in up-and-coming destinations such as Ras Al Khaimah. The Emirate’s residential market has seen a significant improvement over the past year due to a series of positive announcements by key players and a wave of favourable news.
For example, Ras Al Khaimah has introduced several strategies to attract tourists, including financial stimulators and multimillion dollar investments in Jebel Jais projects. Investments from major international and regional developers, further show the ability of the Emirate in attracting key strategic partners and raising capital.
Branded homes provide the perfect blend of an attractive investment and access to a highly desirable lifestyle. Moreover, they provide confidence for overseas buyers who don’t necessarily know who to trust for their investment. Partnering with the right brand and developer is vital. The developer has a responsibility to ensure the management and maintenance of the property to uphold the brand’s extremely high standards.
It is important that investors and buyers alike consider the reputation of the developer, in addition to that of the brand. Developers should seek to partner with a brand that will resonate with their desired target audiences and aligns with their lifestyle aspirations.
From a buyer’s perspective, it is certainly beneficial to understand the developer’s wider vision beyond that of branded properties. By creating communities of the future, developers must prioritise the delivery of sustainable, energy efficient environments where generations of tomorrow can live in harmony with nature.
Exclusivity extends far beyond luxury offerings – it represents an ideal that focuses on superior living – both in terms of home design and lifestyle. Many of us find ourselves resonating with a particular luxury brand, but it’s rarely just about the aesthetics. It’s often about identity, ethos, and purpose.
As the property sector continues to boom, the onus is on developers to provide differentiated products that cater to the market’s needs – which is increasingly focused on luxury. Over the recent years, our notion of community and what it means to live a meaningful life have been altered, perhaps forever.
Branded residences seek to deliver more than just a property, they provide access to a superior lifestyle. Akin to a world-class hotel, many include a range of facilities and amenities from spas and fitness centres to pools, concierge services and restaurants. Every detail has been carefully considered to ensure that it is representative of the luxury brand, its ethos, purpose, and commitment to quality. This is why branded residences make excellent investments; they are limited in supply, ultra-luxurious, highly credible and in theory guarantee a certain standard of quality.