It’s interesting that despite an inherent desire many of us feel when it comes to expressing our individuality, a growing number of property seekers and investors are looking for the polar opposite. The dramatically increasing popularity of branded homes shows no signs of slowing down.
Even with their homes being a treasured enclave where owners can be unapologetically creative and expressive with their personal style, a growing number are forgoing that opportunity in favour of luxurious branded residences that are designed to be exactly the same for all their residents.
There are a multitude of reasons for the brand attraction the majority of us experience on a daily basis. Essentially the crux of the bond is that we find and embrace brands we identify with. Our favoured brands then often become an integral factor in how we visually express ourselves to the world.
But even with brand association forming a prime pillar in so many people’s lives, it’s still quite a leap from there to living in a home adorning the name of the same brand that makes your shoes, suits, handbags or even your car, right?
Well, it’s a leap of faith that’s proving increasingly attractive to property investors focused on Dubai’s super competitive real estate market. There are now more than enough people willing to spend on branded residences to ensure renowned developers are seeking out luxury brands to partner with, and vice versa.
With the market soaring and demand for luxury units growing, many developers have taken the strategic decision to associate themselves with branded residences, to amplify the appeal of their offerings.
Since the launch of Armani Residences in 2010, there has been a slow but steady increase in the portfolio of branded homes in Dubai, with the likes of Bvlgari, Fendi and Versace entering the real estate market.
Since 2022 however, there has been a pivotal shift in the numbers. In early 2022 there were just about 40 branded residences on offer in Dubai. By the end of the year however, that number had risen to 71.
Now, as of August 2023, there are close to 90 branded residences available in Dubai, with Burj Binghatti Jacob & Co. and Bugatti Residences being two of the latest, high-profile additions.
It’s abundantly clear from the sales statistics that demand for branded residences in Dubai is thriving, but we’ve yet to establish exactly what it is that’s making these luxury residences so popular in the market. The truth is that it’s a number of factors coming together to drive the increased demand.
Firstly the term “branded residence” is not just limited to the exclusive design and feel of the properties – it is also inclusive of suitably high-end services and amenities covered within the price tag.
Post-handover capital appreciation is another factor that makes these properties an attractive option for prospective investors. If we look at the numbers from 2022, the difference in the average price-per-square-foot for branded and non-branded residences in the same area/location is an impressive 42 percent. That shows just how much more lucrative the branded options can be for investors.
Branded residences elevate Dubai’s property landscape
Similarly, the average price-per-square-foot for a branded off-plan residence is 15 percent higher than that of a ready non-branded development, further indicating a preference among buyers for luxurious branded developments. Bvlgari remains the most expensive and exclusive branded residence in Dubai, with an average price-per-square-foot of AED9,148.
With the growing demand to cater to, developers are fully aware that they have plenty to gain from their partnerships with renowned luxury brands. An association with the brand allows the developer to promote and sell properties that live up to the trademark standards and provide exclusive services to the residents.
This gives the developer a market advantage to attract brand enthusiasts and reap higher price premiums. The brand receives licensing revenue, brand exposure and new client relations.
The brand also collects a little contribution from the developer for every unit sold. And the buyer gets a prestigious property, enhanced lifestyle, quality finishings and exclusive management. It’s pretty much a win-win situation for everyone involved.
A few years ago a branded residence may have seemed like an oddity, but the landscape has changed dramatically. With more and more high net worth individuals eyeing the Dubai real estate market for investments, developers are upping the ante by pairing their expertise with luxury brands to create something spectacularly unique for potentially interested buyers.
Based on data sourced from various reports on branded residences including data published by Morgan’s Realty and Savills
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