Dubai is home to approximately 29 branded residences, many of which are international brands such as Four Seasons, Banyan Tree, W Residences and One Palm by Dorchester Collection. On average, prices for these ultra-luxury branded homes can range from $450,000 for a 1 bedroom city apartment to over $30,000,000 for a beachfront penthouse.
The branded residence model gained substantial traction in response to Covid-19, particularly among European high-net-worth individuals who contributed to Dubai’s highest transactions in Q1 of 2021. Buyers overseas have demonstrated a heightened comfort with virtual purchases because they recognise the impeccable quality of the brand. In Q4 of 2020, Savills reported that buyers expressed heightened interest in upsizing from their current home throughout one-third of global markets, which is indubitably what our market experienced and continues to witness. Peaked interest has proven not to be seasonal, rather a reaction to Dubai’s maturing luxury real estate market, the country’s efficient response to Covid-19 and newly introduced visa schemes.
Strong interest is also on account of the participation of highly regarded international brands, which deliver a certain standard of excellence on all accounts. The pandemic inspired buyers to change their outlook on what homes should offer; space, both in square footage and in a number of rooms, the ability to engage in sports and leisure activities within a residence, outdoor space in the form of private gardens to ensure safety while also enjoying some sun during the strict lockdown. Branded residences fulfil these requirements with the additional benefit of ultra-luxury features. For example, One Palm by Dorchester provides residents with private lobbies, beaches, a jetty and sweeping terraces within each home.
The Royal Atlantis
From a foreigner’s perspective, owning a home within a branded residence offers the freedom to live between destinations without home safety concerns or the added responsibility of hiring an independent property management company. What’s more, international branded residences offer distinguished privileges that residents can avail at their branches worldwide; at best, dedicated condominiums offer privileges within the city.
The Residences, Dorchester Collection
Burj Khalifa District
There remains a staggering demand for branded residences to date and a shortage of supply available because Dubai is testing the market. The ultra-luxury branded developments are exclusive and possess limited residential units, which has attracted an even higher demand and encouraged a growing number of brands to follow suit. Savills reports that 100 branded residences will be launched across the Middle East region in 2021 and that by 2025, 11 new non-hotelier brands will enter the market, promising a future of success and potentially a new outlook on what constitutes luxury living.