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Dubai’s branded residences growth will be dominated by lifestyle brand collaborations

A five-year forecast predicts the project count of branded residences to rise from 51 to 121 by 2029, representing a growth of 137%

Dubai’s branded residences growth will be dominated by lifestyle brand collaborations

Dubai is at the forefront of branded residences worldwide – this exciting news was echoed at the recent “The Future of Branded Residences” event, organised by Global Branded Residences (GBR) in collaboration with real estate branding expert, Sectorlight, and supported by De Leeuw International.

According to the findings of the report presented by Riyan Itani, director and founder of GBR, standalone projects are on the rise and are expected to make up over half of the market, with nearly 80% of new developments in the pipeline. The sector has experienced remarkable growth over the past decade, with a whopping 410% increase in projects from 2014 to today. In just the last five years, there has been a 122% surge in projects, showing the popularity of branded residences in Dubai.

The GBR data indicates a decrease in the number of hotel brands in the market, projected to drop from 78% to 51% by 2028. This shift highlights a growing demand for dynamic, lifestyle-driven branding in the hospitality sector. The limitations faced by hotel brands, including existing relationships with developers and territorial restrictions, have hindered their ability to form new partnerships and expand into new projects. As a result, hotel brands are expected to comprise only 63% of the market by 2029, compared to the global average of 78%.

“In the absence of availability of tried-and-tested hotel brands, Dubai developers are increasingly turning to innovative and exciting new brands from the non-hotelier world, such as automotive (less than 1% of existing projects moving to 7% of the development pipeline) and fashion brands (10% of the exiting market are branded by fashion brands, while representing 36% of the pipeline) to add the edge in design and marketing,” explains Itani.

Rich Stevens, Managing Director & Chief Creative Officer of Sectorlight adds, “For lifestyle brands, the prospect of extending their customer reach and influence by bringing their brand alive through a physical environment offers amazing potential.  For developers, a partnership with a world-renowned fashion, automotive or jewellery brand presents a fantastic opportunity to ensure a highly effective stand-out in a competitive marketplace. We are just seeing the tip of the iceberg right now, with projects like Mercedes-Benz Places by Binghatti and Armani Beach Residences by Arada.”

The report by GBR further highlights that development in Dubai is primarily focused on the Downtown and Business Bay zones, with 30 new projects in the pipeline to add to the current 15. The Marina/ Beachfront zone will see another ten projects added to the existing eight. Dubai Internet City is set to introduce three projects, while Palm Jumeirah will have a slower pace with only five new projects planned in the next five years. Overall, the emirate’s geographical distribution of projects is concentrated in these key areas.

Robert Gill, Director of De Leeuw International, mentions, “Regionally it is a very exciting time for the branded residences market, with some diverse developments. The key to success is understanding the market, along with accurate financial data. The region is experiencing exceptional growth, impacting all aspects of the built environment.  Our current and forecasted data will empower developers to make informed decisions, with confidence.”