Developers are trying 'anything and everything' to move products, according to Enshaa CEO Raza Jafar
Developers in Dubai should not opt for brand collaborations as a ‘desperate measure’ to lure in customers or investors, according to the CEO of Enshaa, the developer behind the Palazzo Versace Dubai.
Speaking to Arabian Business, Raza Jafar said brand collaborations will fail if they are not set up with a long term strategy in mind.
“[Developers] are trying anything and everything to move products, whether it is special payment terms, brand collaborations, gifting cars, there are many things. However, the only success that you see eventually is something that makes long term sense and is not a desperate measure taken by them,” he said.
Jafar said the market will see more brand collaborations with car and jewellery brands.
“I think there will be brand collaborations coming in. I keep hearing about it, but how many of them will actually come to fruition? I don’t know. But I’m hearing a lot about cars, jewellery and other [brand collaborations],” he said.
The Palazzo Versace Dubai is a joint venture between Enshaa’s subsidiary Emirates International Holdings and Australian-based Sunland Group Limited. It cost a whopping $626 million to build and is only second to the first Palazzo Versace Australia, which opened on the Gold Coast in 2000.
In 2011, Arabian Business reported that a further 13 Palazzo Versace hotels were planned worldwide.
But Jafar said the developer has “no plans” to open more of the branded properties in the region.
Fashion branded hotels in Dubai include the Armani Hotel Dubai and Bulgari Resort Dubai. Dubai developer Damac Properties has also collaborated with Versace on a residential tower in London, while Emaar Properties partnered with Lebanese fashion designer Elie Saab on a project in Dubai Harbour.