Demand for branded properties on the rise in Dubai
Demand for branded properties on the rise in Dubai
Recently, the popularity of branded residences has grown in Dubai. What distinguishes them from ordinary luxury real estate is that they are carried out under the names of well-known world brands. However, the connection with a particular brand is not limited to the use of its name.
A new trend is that developers are implementing their projects in tandem with various brands. Among them are luxury hotel chains (Fairmont, St. Regis, Accor and One&Only), as well as supercar manufacturers (Bugatti, Pagani, Aston Martin) and Cavalli fashion house.
Collaboration with a prestigious brand allows the developer to increase the attractiveness of his project in the eyes of potential buyers. This trend exists in many countries of the world, but in Dubai it is especially pronounced.
According to the CEO of The Devmark Group, the average brand markup is 25-30%.
Based on Knight Frank's forecasts, the branded real estate market in Dubai will grow by 13.5% in 2023. If the forecast is justified, the indicator will become a record not only for Dubai, but for the whole world.
Investors are also attracted by the fact that the value of branded real estate is growing faster than the cost of conventional real estate. Accordingly, if housing is purchased for the purpose of further resale, then such an investment guarantees the buyer a profit in the future.
