UAE - The emergence of branded residences has dramatically changed the real estate landscape in the UAE. These unique living spaces blend the allure of a luxury hotel with the comforts of home, offering residents a unique lifestyle experience.

This trend has gained momentum globally and in Dubai as individuals seek not only luxurious living spaces but also well-designed environments that reflect their personal preferences and aspirations. In fact, branded residences have already set records, with the Bugatti Residences by Binghatti selling the most expensive unit ever for Dh750 million.

Today, luxury is no longer confined to the wardrobe but has spread to other aspects of our lives, including the four walls we inhabit. Brands are now associated with a certain lifestyle, trim and fine choices. Home design elements from international luxury brands have become a statement of personal choice and favour a more sophisticated consumer profile. Today, homeowners enjoy the prestige that comes with owning a branded home, often in partnership with a luxury brand, and benefit from higher value and income.

As the demand for branded homes in Dubai continues to soar, developers have begun and accelerated the pace of offering premium products to cater to a more sophisticated customer base.

According to the Branded Homes Report 2023 published by real estate consultancy Savills, Dubai has the largest number of branded homes in the Europe, Middle East and Africa (EMEA) region, with a projected growth rate of more than 72 per cent. The branded homes programme is expected to continue its upward trend as the number of high net worth individuals or millionaires has surged, growing by 27 per cent over the past five years.

According to Savills, Dubai has the highest number of completed projects and the most projects under construction of any market in the EMEA region, and is expected to grow by 72 per cent during the construction period.

Fashion and jewellery brands such as Cavalli, Bugatti, de Grisogono, Versace, Bulgari, Baccarat, Fashion TV and many more have jumped on the bandwagon and established partnerships with leading UAE and regional developers in the UAE and the region.

Developers have identified the potential of this market segment and are launching projects tailored to meet the needs of this market.

In the UAE, Damac Properties is one of the pioneers leading this trend, adding a range of projects to its portfolio and launching several amenity projects over the past year. Other private Dubai developers such as Binghatti and Danube have also joined the bandwagon. In the last 18 months alone, Damac, the largest local private developer, has launched 11 branded residential projects in prime Dubai locations.

What's driving demand?

Niall McLoughlin, Senior Vice President, Damac Properties, says that a high-end lifestyle with state-of-the-art facilities and amenities, comfort and luxury are the main reasons why customers buy branded homes.

"The UAE market is promising, with reports showing triple-digit growth figures in the sector. The advantage of branded residences lies in having well known and established partnerships that are tried and tested, trusted by customers and have a loyal following. It differs from ultra-luxury projects in that global brands can offer higher value-add, which enhances their premium offerings, which in turn yields better returns,"

he said, adding that partnering with highly sought-after global brands helps maintain the momentum of demand and interest.

Industry executives have observed that both investors and end-users are taking a keen interest in Dubai real estate as Covid-19 and Expo 2020 have propelled the Dubai real estate market as one of the most respected and preferred destinations to live, work and invest.

Analysts at Savills believe that strong demand from domestic and international buyers for trophy assets with lock-up-and-leave potential has fuelled the growth of branded residential schemes in Dubai over the past decade. Second

What do buyers want?

In addition to superior design, buyers want branded residences that offer more high-end amenities and 24/7 personalised service.

From indoor tropical islands, cigar lounges, sea-facing infinity pools, edge-walking experiences, underwater museums, bio-domes, and more, today's residents experience the resort-like pleasures of a city home.

These experiences offer a unique lifestyle and deeper psychological benefits - a sense of pride, self-esteem and confidence amongst the owner's friends, community and surroundings.

Are branded homes here to stay?

Yes, branded homes are definitely here to stay.

Increasing brand collaborations, continued demand for luxury, middle class aspirations, wellness trends and the need for vertical lifestyle communities will drive more demand. The sector will continue to evolve with the changing preferences of homebuyers and investors. With the strong commitment of developers and brands to the property market, the growth of branded homes is not expected to slow down anytime soon.

The UAE is known to be a breeding ground for new and unique ideas and is traditionally rooted in brand loyalty. Dubai in particular has the highest number of branded homes. As developers, we can attest to the huge demand for branded homes and are confident that this trend will continue in the near future.