Dubai Real Estate Set to Surpass New York and Miami in Branded Residences by 2029, Reports ARADA
Tuesday, 6 August 2024
Dubai is poise to outshine real estate giants like New York and Miami, emerging as the foremost hub for branded residences. According to ARADA, the city’s brand residence projects are set to double in the next decade.
Rapid Growth in Branded Residences
- Projected Increase: Dubai’s number of brand residence projects is expect to rise from 51 to 106 by the end of 2029.
- New Units: This expansion will introduce approximately 34,000 new luxury units.
This significant growth positions Dubai as a global frontrunner in luxury real estate.
Shift in Market Dynamics
- Current Landscape: Dubai’s branded residences currently show a 70/30 split between hospitality and non-hospitality brands.
- Future Forecast: By 2029, this ratio is project to shift to 55/45, with increased presence from fashion, design, film, jewelry, and other luxury sectors.
Rosa Piro, Senior Business Development Director at ARADA, highlights the shift: “Dubai, once ranked third or fourth in branded residence schemes, is now poise to double its number of projects over the next decade.”
Fashion-inspired luxury residences
- Diverse Offerings: The luxury real estate market is diversifying beyond traditional hospitality brands like Marriott and Hilton, incorporating fashion, lifestyle, and entertainment brands.
- ARADA’s Innovation: ARADA’s Armani Beach Residences on Palm Jumeirah exemplify this trend. Featuring only 53 apartments, this project is the highest-selling product in Palm Jumeirah and stands out for its unique offering.
The Armani Beach Residences emphasize “subtle luxury” and were personally overseen by Giorgio Armani.
ARADA’s strategy focuses on branded residences
- Global Ambitions: ARADA’s growth strategy includes exploring opportunities in Saudi Arabia, Australia, Europe (particularly Italy and the UK), and strengthening its position in Dubai.
- Current Rankings: ARADA ranks 14th in Dubai for branded residence units and ties for 10th place in the number of schemes.
- Upcoming Projects: ARADA will enhance its market position with new developments in Dubai and the International Financial Centre (IFC).
Expanding Beyond Dubai
- Sharjah Developments: ARADA has launched partnerships in Sharjah with EMAAR Hospitality for Vida Residences, Rove Home, and Anantara Residences.
- Market Demand: These projects have generated strong demand, with the Anantara project achieving impressive rates of 2,500 per square foot—a notable figure for Sharjah.
Focus on Waterfront Properties
- Value Retention: Developers are increasingly focusing on waterfront properties due to their high value retention and tranquil water views.
- Buyer Preferences: “In the UAE, properties with water views are highly prefer for their sense of tranquility,” explains Piro.
Diverse Luxury Buyer Profile
- Buyer Demographics: UAE nationals represent 36% of buyers, followed by Saudi Arabians at 10%. The rest include buyers from Egypt, the UK, Russia, and other nations.
Dubai’s expanding dominance in the branded residences market underscores its emergence as a global leader in luxury real estate.
