Branded Residences Sector Set for Robust Expansion in Dubai

Dubai is on track to significantly expand its branded residences sector, anticipated to escalate the number of independent projects to 54% of the market. These standalone projects, devoid of a hotel component, are predicted to form 78% of the upcoming developments in the next four years, outpacing the global average forecasted at 41%.

Reflecting on the last decade, starting from 2014, Dubai’s branded residences landscape has surged by an impressive 410%, evolving from just ten projects to a robust 51. The sector has seen a 122% increase over the last five years, escalating from 23 to 51 current projects, reports from the property consultancy Global Branded Residences (GBR) reveal.

The insights were shared by Riyan Itani, the pioneering Founder and Director of GBR, during ‘The Future of Branded Residences’ event, a collaborative initiative with real estate branding experts Sectorlight and De Leeuw International in Dubai. Itani’s presentation shed light on the 121 operational and planned projects in the emirate, drawing from in-depth market analysis.

The conference attracted key stakeholders, including top real estate developers, consultants, and hotel operators, alongside lifestyle brand representatives keen on exploring new collaborative ventures.

Itani highlighted a shift in market trends, noting a projected decrease in hotel-branded projects from 78% to 51% by 2028, signalling a preference for dynamic, lifestyle-oriented brands. This transition indicates a move away from traditional hotel collaborations, hindered by pre-existing partnerships and geographical exclusivities, steering Dubai’s developers towards fresh, innovative branding partnerships with entities in the automotive and fashion sectors.

Sources reveal that there is significant potential for lifestyle brands to expand their influence by incorporating their essence into physical spaces. This presents unique opportunities for developers to distinguish their projects in a competitive market, according to insiders.

Highlighting pioneering ventures such as Mercedes-Benz Places by Binghatti and Armani Beach Residences by Arada, insiders envision a broadening horizon where both luxury and mainstream brands could leverage real estate to amplify their market presence and brand ethos.

Echoing this sentiment, De Leeuw International’s Director, Robert Gill, accentuated the promising prospects within the regional Branded Residences sector, underlining the importance of market insight and precise financial analytics in fostering informed, confident development decisions, as reported by the TradeArabia News Service.

Original article reference: Zawya

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