Posted inInterviewResidential

Branded residences boom: Beyond luxury hotels in the Middle East

The Middle East leads the surge in branded residences, with a projected 86% increase by 2027. This trend goes beyond hotels, with fashion houses, car brands and more joining the market. Discover the reasons behind this real estate trend and the benefits for investors

Branded residences boom: Beyond luxury hotels in the Middle East

The branded residences market is growing and diversifying with non-hotel brands entering the scene alongside luxury hotel brands. This diversification is meeting varying buyer demands across different regions. High-end brands like fashion houses, automobile companies, and restaurants are getting into the real estate market by putting their names on residential projects. This trend is changing the landscape of branded residences and providing buyers with a wider range of options to choose from.

Hence, CW Property Middle East exclusively sat down with Sean McCauley, CEO, Devmark who shed light on how developers, partnering with the right brand is the linchpin to maintaining exceptional standards, making branded residences an increasingly integral business model for luxury brands.

According to recent reports, the Middle East’s projected supply of branded residences is expected to increase by 86% by 2027. What according to you is driving this demand?

The recent report by Savills sheds light on the remarkable growth projected for branded residences, particularly in regions like the Middle East. With a forecasted increase of 86% in supply by 2027, the Middle East stands at the forefront of this trend. This surge is fuelled by a confluence of factors, including the region’s burgeoning affluent population, a growing appetite for bespoke luxury experiences, and the allure of branded properties as lucrative investment opportunities.

AVANI Hotel Suites & Branded Residences

Dubai, in particular, is poised for exponential growth in standalone branded residence projects. As the city continues solidifying its position as a global hub for luxury living, we anticipate a significant rise in the number of projects, with 54% of developments being standalone. These figures underscore Dubai’s appeal as a prime destination for high-net-worth individuals and reflect the evolving preferences of discerning buyers seeking exclusivity and personalised lifestyle experiences.

Developers are teaming up with high-end brands across various industries to create branded residences. So, according to you why are we seeing this trend?

One of the most compelling aspects of branded residences is the collaboration between real estate developers and high-end brands across various industries. From fashion houses like Giorgio Armani to esteemed automobile manufacturers like Porsche, these partnerships redefine luxury living by infusing properties with unparalleled design, craftsmanship, and prestige.

Lifestyle branded developments are centred around partnering with prestigious lifestyle brands from various industries such as fashion, design, automotive, or wellness. These developments focus on incorporating the brand’s identity, aesthetics, and values into the residential or mixed-use project’s design, amenities, and overall experience. The aim is to offer residents a unique and aspirational lifestyle inspired by the brand, with a focus on design-driven living spaces, curated amenities, and exclusive brand-related experiences. Lifestyle branded developments appeal to individuals who are drawn to a particular brand’s ethos, style, and lifestyle, seeking to immerse themselves in its culture and identity.

DAMAC Bay by Cavalli

In summary, while hospitality-branded developments prioritise delivering a luxury hospitality experience akin to staying in a high-end hotel, lifestyle-branded developments focus on offering residents a distinctive lifestyle inspired by a specific brand’s identity and values. Both developments cater to an affluent clientele seeking premium living experiences but offer different approaches and atmospheres to meet diverse lifestyle preferences and aspirations.

How does a collaboration between a real estate developer and a lifestyle brand work out?

The impact of developer-brand partnerships extends beyond aesthetics; they shape the very essence of the residential experience. By integrating the brand’s identity into every facet of the development, from architectural design to amenities and services, we create immersive environments that resonate with our discerning clientele. This collaborative approach not only elevates the perceived value of the property but also fosters a sense of belonging and exclusivity among residents. The value and significance of these collaborations are evident in the enhanced residential experience they create.

Armani Beach Residences at Palm Jumeirah

 Based on various criteria, real estate developers and brands typically choose each other for branded residence projects. These may include brand alignment with the target market and project vision, the brand’s reputation for quality and excellence, the brand’s ability to add value to the residential development through design, amenities, and services, and the potential for a mutually beneficial partnership. Partnering with the right brand is crucial as it can significantly enhance the perceived value and marketability of the branded residence, attract affluent buyers and investors, and contribute to the long-term success and profitability of the project.

What do buyers/investors stand to gain if they invest in a branded residence?

For buyers and investors, the allure of branded residences lies in the promise of unparalleled luxury, exclusivity, and prestige. Investing in a branded apartment represents more than just acquiring a property; it signifies membership in an elite community defined by refined taste and sophistication. With access to bespoke amenities, concierge services, and curated experiences, residents enjoy a lifestyle tailored to their discerning preferences, further enhancing the intrinsic value of their investment. This exclusivity is a testament to their unique status and discerning choices.

Bugatti Residences by Binghatti

What does the future of branded residences look like?

Looking ahead, developers are likely to increasingly turn to innovative and exciting new brands from the non-hotelier world to build branded residences. This trend may be driven by factors such as the desire to offer unique and differentiated residential experiences, the evolving preferences and lifestyles of affluent buyers, the need to stand out in a crowded market, and the potential for partnerships with niche and emerging brands to capture specific market segments. The future of branded residences will likely be characterised by continued growth and diversification, emphasising bespoke luxury, personalised services, and experiential living.