AMEINAH ALZEYOUDI (ABU DHABI)
Dubai continues to reinforce its position as a leading destination for branded residences, witnessing a significant increase in transaction volumes for designer homes during the first half of 2024.
According to the Dubai Branded Residences Report prepared by Morgan International Realty, these transactions increased by 44% compared to the same period last year.
Dubai recorded 5,592 branded residence transactions in the first half of this year, with a total value of Dh28.86 billion, compared with 3,893 transactions worth Dh23.18 billion in the first half of 2023.
The price per square foot in this category of housing increased to Dh3,852, an increase of 69% compared with the price per square foot for regular housing, which amounted to Dh2,276. Branded residences are divided into four types according to the report: Branded residences within the hotel account for 13% of the supply, while projects adjacent to the hotel account for 20%, down 5% from last year.
Projects with hotel management account for 33% of the supply, up 5% from last year, and finally, future projects associated with a brand account for 34%, up 4% from last year.
The data indicates that the most prominent areas that hosted the largest number of branded projects include Palm Island, Downtown Dubai and Business Bay.
Each of these areas hosted 16 projects, while Dubai Harbour areas included eight projects, Bay Marina seven projects, Bay Creek Harbour and Bay Hills six projects each.
The Bulgari brand topped the price list, with the price per square foot in its projects reaching Dh11,380, with an average of Dh3,099. It was followed by Four Seasons Resorts, where the price per square foot stood at Dh9,257, with an average of Dh2,521.
In 2010, Armani Residences in Burj Khalifa was the first branded residence to open in Dubai, and since then the demand for these luxury residences has shown no signs of slowing down, reflecting the continued success of this sector in Dubai's real estate market, solidifying its position as a global hub for business and luxury real estate.