DUBAI POSITIONED AS MAJOR GLOBAL HUB FOR BRANDED RESIDENCES, TRANSACTION OVER $4.4BN: REPORT
28/05/2023
The demand for branded residences have grown since the launch of the first Armani Residences in Burj Khalifa which opened in 2010.
Dubai has witnessed growth in this niche market, positioning itself as one of the hubs for branded residences in the world, the report stated.
“Dubai’s real estate market, leading the city to become the capital of branded residences worldwide. When property developers realized it’s a winning formula and started to capitalize on the concept,” said Elias Hannoush, CEO, Morgan’s International Realty.
Branded residences are the result of a collaboration between a brand and a developer, the brand allows the developer the right to promote and sell properties bearing their trademark. The developer pays a royalty fee, design and administration fees, as well as other possible additional charges.
Dubai holds a total of 58 branded residences, 31 ready projects and 27 under construction.
In the first half of this year, 3,324 transactions took place, amounting to AED 161.3 billion. In 2021, a fraction of the number of the transactions took place, amounting to AED 5.65 billion, attributed to an increasing demand for these branded properties.
The highest price per square foot of a branded residence is AVA at Palm Jumeirah, AED 6,937 per square foot.
The top performing branded projects in Dubai include St. Regis The Residences, W Residences Downtown, The Address Jumeirah Resort & Spa, Cavalli Casa Tower and SLS Dubai Hotel & Residences, according to the report.
Dubai has become a hub for branded residences over the past decade, and it will continue to dominate international real estate markets due to the significant increase in demand from buyers all over the world, the Morgan’s International Realty report concluded.
Resource: https://www.arabianbusiness.com/industries/real-estate/dubai-positioned-as-major-global-hub-for-branded-residences-transactions-over-4-4bn-report
