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photon capital advisors limited (509084) stock rallies ✌️【Employment Opportunities】✌️ Free real-time global stock trend updates to help you capture market movements and make better investment decisions. Editor’s Note: This 【 - Free Expert-Led Investment Training 】 series is, or was, sponsored by the country it highlights. 【 - Free Expert-Led Investment Training 】 retains full editorial control over subject matter, reporting and frequency of the articles and videos within the sponsorship, in compliance withour policy.
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Branded residences are residential complexes that incorporate the design and service style of their namesake brand, often sitting beside or within a brand’s hotel or resort — and a growing number of luxury fashion names are jumping on the real estate bandwagon.
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“Real estate of this character, this level, it is not only a nice building,” said Viel, adding that these residences have operational requirements more similar to a resort or hotel than an apartment block. “You need a brand that guarantees that quality of service.”
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For many of the typical buyers of these branded properties, it is not their first home — or even their second — creating a different relationship with the property where convenience is key, said Viel: “The service component is extremely important for someone that is owning six or eight different houses in the world.”
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“The privilege of being able to ‘own the place’ somehow and have access to the very heart of the social life, to (these buyers) is important,” said Viel.
Buying “instant access to the Dubai lifestyle” is a big motivator for many of the high net-worth individuals, said Faisal Durrani, head researcher at Knight Frank Middle East, an independent real estate consultancy. Dubai isahead of prime real estate locationsfor second homes such as Aspen, Miami, the Algarve, and the Bahamas, according to Knight Frank’s 2023 Prime International Residential Index.
For luxury brands, the move into real estate helps them to diversify their income as they make money throughlicensing or management fees, while for developers, the branding means higher property prices. On average, branded residences command a30% premiumcompared to similar-quality properties in the same location. But in Dubai, that premium is significantly higher: 86%, according to Knight Frank.
photon capital advisors limited (509084) stock rallies ✌️【Employment Opportunities】✌️ Real-time stock and futures data, backed by expert stock market trend predictions, to help you make timely and profitable investment decisions. The property market in Dubai is also heavily geared towards “off-plan” sales, where buyers purchase a home before it’s built,based on the residence location, floor plans, renders and specification details. The deposits for off-plan purchases can often amount to more than $1 million for prime real estate.
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Branded residences can help offset these risks by offering a perceived reassuranceon the quality and service, particularly for international buyers, said Rosa Piro, senior business development director at Arada, a property developer in the United Arab Emirates: “Buyers in Dubai have a tendency to like brands and trust brands.”
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photon capital advisors limited (509084) stock rallies ✌️【Employment Opportunities】✌️ Free expert predictions on stock trends and real-time data to help you make informed decisions and grow your wealth steadily. According to Arada, the Armani Beach Residences are priced 63% higher, on average, per square foot, than other branded residences on Palm Jumeirah, with two-bedroom residences starting from $5.9 million. Arada anticipates the building will be complete by the end of 2026.
Piro believes the Armani name is more than just a branding exercise for the project. “Both of our partners are very actively and personally involved in the project,” she said, adding that “Mr. Armani himself is involved in the design of the apartments and adds his own touch.”
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Durrani said that the success of the luxury property market has lifted the entire sector: by September 2023, Dubai’s real estate market was up 19% year-on-year, according to the latest figures available from Knight Frank.
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photon capital advisors limited (509084) stock rallies ✌️【Employment Opportunities】✌️ Get precise stock market predictions and free access to real-time market data for efficient decision-making and portfolio growth. The Armani Beach Residences is just the first of many branded residence projects for Arada, which is already working on its next residence, to be unveiled later this year. “There is a big appetite from both buyers as well as the developers, to continue with branded residences,” said Piro.
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