The luxury branded property segment in Dubai – as also in other emerging markets such as Ras Al Khaimah – is predicted to see a massive surge in 2024, with expectations of sooner-than-later cut in interest rates, together with leading developers’ bid to add more advanced sustainability, technology and unique lifestyle elements in their upcoming projects driving demand, industry insiders said.
Branded residences in off-plan projects positioned at lower entry points – priced in the range of AED1-2 million – and offering lower initial investments are projected to see the maximum demand growth.
“The luxury branded residence trend is here to stay and with [interest] rates set to reduce soon, the demand [in this segment] is expected see a significant jump this year as customers will look forward to better financing options, reducing their total cost of purchase,” Alois Kugendran, General Manager at Huspy, Dubai-based proptech which is also a leading player in mortgage, told Arabian Business.
“I think 2023 has set the foundations for further growth next year. With interest rates being very competitive in Dubai compared to other global markets, customer demand for luxury branded residences has beaten expectations last year,” he said.
Kugendran said their firm has seen robust growth with off-plan branded projects, with demand and inquiries remaining high throughout the year.
In 2023, average branded property sales crossed AED713 million every month, with sales crossing the AED1 billion mark in the months of January, February, and September.
“Very recently, one of our branded property transactions was an AED22.5 million sale with Dorchester Omniyat, highlighting the sustained robust demand for branded residences,” the Huspy senior executive said.
HNWIs, international investors to drive branded residences demand
Senior executives at other real estate consultancies also said they expect to see the strong demand for branded residences in Dubai to continue in 2024, mainly driven by HNWIs (high net worth individuals) and international investors, wanting to experience the lifestyle that Dubai has to offer.
“This will shift the focus towards exclusive communities and bespoke developments that deliver the luxurious lifestyle these customers desire,” a senior executive at another proptech said.
Industry insiders said the UAE delivers unparalleled value for money for such properties when compared to other global luxury hotspots, which is the main factor driving the demand.
“Beyond the brand, such apartments come with the highest quality fittings and furnishing, high quality amenities, personalised design and addresses that are desired by many,” Kugendran said.
“We are excited about what 2024 will offer,” he added.
Hotspots for branded residences in Dubai
The Huspy senior executive said within Dubai, their firm is seeing strong demand across Business Bay, Downtown Dubai, Dubai Marina, and Jumeirah Village Circle (JVC).
“These are all areas which deliver consistent returns, while also being in close proximity to some of the city’s most popular lifestyle destinations.”
At the top of the range, an eight-bedroom home in the Bugatti Residences is estimated to cost AED750 million.
Industry insiders said the demand surge for branded residences is also because of the emirate’s political stability and attractive tax incentives, which attract international investors seeking safe and lucrative investment opportunities.
This is only expected to grow in 2024, they said.
The major buyers come from different nationalities – GCC nationals, Indians, Pakistanis, Russians and Britishers.
The price range for such projects varies, and are not completely inaccessible, industry players said.
Huspy launches branded property department to meet demand surge in Dubai, RAK
Kugendran said branded developments have seen strong demand grow through 2023, prompting Huspy to launch its own branded property department.
“Further, Huspy, as the largest mortgage platform in the UAE, already provides customers with some of the most competitive interest rates. With rates set to reduce next year, customers will look forward to better financing options, thereby reducing their total cost of purchase,” he said.
Kugendran also said beyond Dubai, their firm is seeing a lot of demand in the Northern Emirates, especially Ras Al Khaimah (RAK).
“It (RAK) is undergoing a transformative shift, positioning itself as a premier tourism destination within the UAE. The centrepiece of this development is the arrival of the iconic Wynn resort to Al Marjan Island,” he said.
The integrated resort promises to redefine luxury hospitality with its opulent accommodations, world-class gaming facilities, and vibrant entertainment offerings.
Industry insiders said RAK’s fast rise as an emerging real estate investment destination is attracting some of the high quality developers to the emirate – from Aldar to Emaar, and brands such as Nikki Beach.
“The combination of bespoke luxury, jet-set glamour and vibrant beachfront living, caters to a sophisticated, experience-driven audience. Residents also get access to impeccable service, breathtaking sea views, and unrivalled amenities within a prestigious address,” Kugendran said.
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