Global real estate advisors, Savills, published research highlighting the growth of the branded residences sector across the Middle East.
Over the past 10 years, the growth of such schemes has outpaced hoteliers, rising from 11% of the total market in 2010 to 16% in 2020.
Eleven new non-hotelier brands are expected to enter the market by 2025.
Hotel brands still dominate and account for 84% of current schemes and 88% of the pipeline. Marriott, whose brands include W, The Ritz-Carlton, and St Regis, is by far the leader in the sector and is set to remain so, according to Savills.
Miami (32 schemes), Dubai (29 schemes), and New York (25 schemes) are the top 3 cities for branded residences. Twelve countries will see their first branded residential projects over the next four years in locations as diverse as Iceland, Paraguay, and Nigeria.
Egypt is forecast to grow fastest of any country over the next 4 years, rising from 1 to 18 schemes. Other countries moving from a low base include Spain (+83%), Bahrain, Belize, and Costa Rica (+80%).
Richard Paul, Head of Professional Services for Middle East at Savills said: “When it comes to price, branded residences achieve a premium, on average, of 31% over equivalent non-branded properties, although this figure can vary significantly by location. If we look at Dubai, it is forecast to become the largest city based on pipeline schemes with a notable increase from Dubai-based master-developer Emaar who has risen to 10th place from 24th in 2007.”
The UAE, Mexico, and Brazil are expected to add the most schemes by number amongst the fastest growing countries (those adding at least 50% to their existing supply). Vietnam, the UK, Morocco, Malaysia, Australia, and Saudi Arabia also have a pipeline of at least six schemes.
Commenting on the trend, Paul Tostevin, Director, Savills World Research, said: “This mixture of emerging and established prime markets illustrates the ever-widening reach of the sector today. Now a proven formula, brands are confident entering new territories.”
Inside branded residences in the ME
Today there are over 400 branded residences scattered all across the globe.
Marriott International with brands such as Ritz-Carlton, St.Regis & W has sixty branded residences planned for the future while Four Seasons has over fifty projects under development.
Not just limited to hotel chains, luxury brands and designers such as Versace, Baccarat and even Aston Martin have all lent their names to this new luxury property development.
Elie Saab and Emaar
Lebanese fashion designer Elie Saab is collaborating with Dubai real estate development company Emaar to create luxury branded apartments, offering Palm Jumeirah, Dubai skyline, and Arabian Gulf views. The Saab residences named the Grand Bleu Tower will form part of Emaar Beachfront comprised of more than 20 towers.
The Saab-designed apartments will house between one and three bedrooms, with each home boasting a private balcony, and span between 670 sqft and 2,150 sqft.
As well as great views, residents will have direct access to a private beach and numerous dining options in the building, as well as “luxury resort-style amenities”.
The property will also feature a landscaped pool deck on a high floor, as well as an infinity-edge swimming pool.
The new development will join the long list of other luxury properties in Dubai which also feature interiors by top fashion names including Giorgio Armani, Versace, Fendi, Ralph Lauren, and the late Karl Lagerfeld.
The luxury gated island destination is due for completion in autumn of 2023.
Typical services available in branded residences
- Use of hotel amenities
- Round-the-clock security built-in
- Elevated status on hotel loyalty schemes
- The full range of concierge services
- Spa and salon services
- In-residence dining and catering
- Personal shopping
- Childcare services
Existing Dubai-based residences
- SO/ Sofitel Residences, Uptown Dubai
- Andaz The Palm Residences, Dubai
- W The Palm, Alef Residences, Dubai
- The Residences at Mandarin Oriental, Dubai
- Lamborghini Residences, Dubai
- The Royal Atlantis Residences, Dubai
- Langham Place Residences, Downtown Dubai
- Bulgari Residences, Dubai
- Nikki Beach Residences, Dubai