Designers and luxury brands cash in on Dubai’s construction boom as the emirate’s real estate market records a rapid surge in branded residences, with many more in the pipeline, industry insiders told Arabian Business.
Dubai’s upscale residential sector is experiencing an unprecedented surge in the demand for luxury real estate. Experts highlight the potential for significant gains by capitalising on the rise of mega-projects, particularly for brands in sectors such as automotive and gastronomy.
This trend is expected to pave the way for innovative brand-developer collaborations, offering lucrative opportunities for partnerships with brands that have not previously explored ventures in branded real estate projects.
Leading the charge in designer-developer partnerships is DAMAC Properties, which has, in recent years, formed several strategic alliances with internationally acclaimed fashion and luxury brands. According to Amira Sajwani, Managing Director of Sales and Development, DAMAC’s strategic partnerships have shaped pioneering luxury living destinations in Dubai and redefined the concept of branded residences.
Noteworthy projects include the Cavalli-branded DAMAC Towers by Paramount and DAMAC Hills 2, as well as the jewelry house de Grisogono-themed Gems Estate. The interiors of the coveted Elegance Residences were designed by renowned Lebanese couturier Zuhair Murad, said Sajwani.
“Dubai’s ascension as a hub for luxury living has stimulated an environment where architects, interior designers, and artisans can exhibit their expertise at the pinnacle of their professions,” she told Arabian Business.
“The market is propelled by a demand for the extraordinary – luxury materials, sophisticated finishes, and avant-garde technology aren’t merely desirable; they’re requisites.”
Design business boom
Omar Salameh, CFA, Managing Director of Vivium Holding, partner of leading Italian furniture house Cassina, concurred the blossoming of Dubai’s luxury interior design scene reflects the city’s coming of age.
There has been a visible surge in bespoke design demand fueled by an influx of discerning investors and dynamic economy, said Salameh. Dubai has cultivated fertile ground for creativity, enabling grand visions to manifest as “hallmarks of luxury and grace.”
“As Dubai continues to evolve, so does the significance of designers. They are the architects of experience, setting new benchmarks for sophistication,” he stated, adding that this will bode well for the interior design industry as it will lead to greater competition.
“Increased competition is the perfect catalyst for the elevation of [real estate] offerings, as they meet the demands of intuitive clients with a desire for quality and service of the highest calibre. The competition allows the truly talented to stand out,” added Salameh.
Cassina’s furniture and design products have garnered a lot of popularity in luxury residential developments across almost all its collection segments including outdoor and dining, through its existing partnerships as it looks to scout other opportunities for collaboration.
“Dubai’s current strategy is yielding remarkable results, underscoring the timeless adage: ‘build and they will come’,” Salameh added.
A similar picture was painted by Marco de Leo, Managing Partner at Italian law firm BonelliErede, who noted many Italian and global brands are flocking to Dubai to seize opportunities emerging from the major construction boom.
“When it comes to luxury, nowhere can rival Dubai, and it is also emerging as the leader in the global luxury property market,” he said. The surge in millionaire migration from Europe, India, Africa and Russia have significantly contributed to the demand for ultra-luxury real estate in Dubai, and as a result, the emirate recently claimed the top spot in the MENA region for having the most hotel projects, with 85 in the pipeline.
This surge in hotel development is expected to fuel demand for talented designers looking to establish themselves in the city.
“High-end luxury interior and furnishings brands are indeed entering the market to meet the demand. One such example is Fendi Casa’s collaboration with DAMAC on the famous Fendi villas, Bentley villas and many others. We see plenty of opportunities for other brands to follow suit and partner with local property developers,” De Leo added.
These observations were echoed by DAMAC’s Sajwani, who recognised the “vital role” designers play in the mission to deliver offerings that resonate with clients’ tastes.
Their expertise is “integral” to conceptualising living spaces that surpass conventional boundaries as “not merely luxurious but thriving ecosystems,” she explained. This synergy between DAMAC’s vision and creative talents is nurturing the industry.
Room for other brands to enter branded residences space
The flood of new luxury developments is boding well for interior designers chasing major commercial projects, according to Devmark CEO Sean McCauley, who believes the branded residence space is no longer only exclusive to fashion brands.
“We are also seeing the likes of automotive brands like Bugatti, Pagani and Bentley who are coming into the branded residence space as well. We’ve also got hospitality like the Ritz Carlton, Four Seasons, and W. We have even got gastronomy brands, you’re hearing the likes of Zuma starting to do some branding in terms of their residences, and you’ve got lifestyle brands. I think it is way bigger than just fashion,” McCauley told Arabian Business.
From a buyer’s perspective, choosing branded real estate can bode well because it brings with it premium quality, good service, and more credibility to the developer, as well as amenities and services not found in regular real estate like concierge or valet services.
“There really is a lot of benefits from a buyer’s perspective, including hassle-free ownership because the brand will often rent out the properties, and they come furnished so you don’t need to worry about how to furnish your apartment.”
Dubai branded residences set to double by 2030
A central growth driver has been the meteoric rise of branded residential schemes, a hallmark of Dubai’s luxury ascent acclaimed by the Savills Global Branded Residences 2023 report.
DAMAC, which spearheaded the concept in Dubai over a decade ago, considers this space “at the core” of its strategy as the city evolves as a global hub. The sector embodies the company’s pledge to quality and luxury, according to Sajwani.
She underscored plans to “actively invest in innovation and sustainability” for DAMAC’s diverse branded properties portfolio spanning over 10 distinguished brands to keep pace with evolving client demands. Over 72 new schemes are expected by 2030, according to the Savills report.
“There are numerous schemes in the pipeline from both hotel and non-hotel brands. Dubai is often the location for many one-of-a-kind schemes which pride themselves on exclusivity and their one-of-one status,” said Kelcie Sellers, Associate at Savills World Research.
“These branded residences are trophy assets for these global buyers who are able to buy into the lifestyle and associations with the brand, or brands, of their choosing.”
By 2030, the Middle East will have the highest growth of any global region, with the number of branded residential schemes increasing by 120 percent, Sellers explained.
Meanwhile, McCauley believes the scope is huge for brands to get involved in branded real estate projects.
“There’s still a lot to be explored. A lot of companies that don’t even know they could be entering branded real estate might be entering branded real estate. I think this trend will definitely continue,” he added.
With the city undergoing unprecedented transformation across sectors including 500 new restaurants in 2022 alone, bespoke design demand looks set to escalate.
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