Dubai’s real estate market is witnessing a surge in sales of ultra-luxury homes with brand names such as Four Seasons, Bulgari, and Cavalli as wealthy buyers look for places to invest their money. The city has become the world’s capital of branded residences, attracting foreign buyers who are willing to pay premium prices for exclusive properties.
Recently, a buyer agreed to purchase a five-bedroom Baccarat-branded apartment for Dirham 203.1 million, breaking the previous record of a five-bedroom apartment sold for 160.3 million dirhams in the Bulgari Lighthouse.
The luxury real estate market in Dubai has boomed during the COVID-19 pandemic, with the rich becoming richer and Russians seeking safe havens for their money after their country’s invasion of Ukraine. The prime real estate value surged 89% in October 2022 from the previous year, recovering quickly from a slump that lasted from 2014 to 2020. Developers prefer to team up with luxury brands as they can sell the apartments for 30% more than non-branded residences, depending on the region.
Dubai now has nearly four dozen branded projects, with more set to be built by 2030. The most popular area for branded projects is a strip of development in and around a man-made portion of Dubai Creek. Some projects are directly on the creek, such as the Four Seasons apartment and townhouse complex handed over to residents a few weeks ago. The Baccarat Residences are planned for a strip of land between the creek and Downtown Dubai, home to the Burj Khalifa, the tallest building in the world.
In conclusion, the branded residences market in Dubai is thriving, with buyers willing to pay premium prices for exclusive properties. Developers are partnering with luxury brands to sell apartments for a higher price, and buyers are attracted to the trust and security associated with a well-known brand. Although there are risks involved, these are minimal and not deterring investors. Dubai’s real estate market is likely to continue its upward trajectory as more branded projects are planned for the future.