A recent report by global property consultancy, Knight Frank, shows that there is a growing interest among high-net-worth individuals (HNWIs) in owning branded residential properties in Dubai. The report indicates that 69% of HNWIs worldwide are interested in purchasing such properties, with non-GCC-based HNWIs showing a higher interest at 83% compared to GCC-based HNWIs at 46%. Knight Frank surveyed 317 HNWIs to gain insights into their attitudes towards investing in real estate in Dubai, revealing that these individuals collectively own 1,149 homes with a net worth of $5.4 billion.
Luxury branded residential operators like Ritz-Carlton, Bulgari, Dorchester Collection, and Four Seasons are capitalizing on the demand for high-end homes in Dubai. The report highlights that the emirate’s third freehold residential market cycle has seen an increase in purchases by end-users looking for second homes or holiday homes. A significant number of HNWIs are considering buying branded residences in Dubai to use as their primary residence, holiday home, or retirement home, reflecting a trend towards luxury living in the city.
The report also sheds light on the expectations of HNWIs regarding the appreciation of branded residential properties in Dubai. A sizable percentage believes that the value of these properties will increase by 5-15% within the first year of acquisition. This optimism is justified by the premium pricing of branded residences, which offer additional features like security, services, and quality assurance provided by the brand. Developers need to justify this premium to attract buyers and retain competitiveness in the market.
For HNWIs with a net worth of over $15 million, factors like service provision, physical amenities, and brand identity play crucial roles in their decision to purchase branded residences. These individuals are drawn to the lifestyle and luxury offerings that come with owning a branded property in Dubai. Additionally, owning a branded residence provides access to world-class facilities, property management, and amenities, ensuring a convenient and luxurious living experience for the residents.
Interestingly, the report also reveals the spending patterns of HNWIs on branded residential properties in Dubai. GCC-based expat HNWIs tend to have a lower budget, with 91% aiming to spend between $600-999 per square foot on a branded property. In contrast, global HNWIs are willing to invest more in branded homes, with a significant percentage ready to spend over $5,000 per square foot. This disparity in spending patterns reflects the diverse preferences and financial capabilities of HNWIs interested in owning branded residential properties in Dubai.
In conclusion, the growing interest in branded residential properties among HNWIs in Dubai signifies a trend towards luxury living and premium real estate investments in the city. With renowned luxury brands entering the market and offering exclusive amenities and services, branded residences have become a desirable choice for high-net-worth individuals seeking a sophisticated and upscale lifestyle in Dubai. As the market continues to evolve, developers will need to innovate and differentiate their offerings to attract discerning buyers and retain their competitive edge in the luxury real estate sector.
