Dubai’s real estate market is witnessing a new trend at present, namely branded luxury residences which are attracting more buyers. Several real estate buyers are now tying up with major luxury brands. Dubai already has several premium projects in this category including Just Cavalli, Armani Residences, Fendi Styled Villas, Bugatti, Residences at Palazzo Versace, The Trump Estates, Paramount and Bvlgari among others.
Tonino Lamborghini, the noted Italian firm for design and lifestyle accessories, has already tied up with Oriental Pearls by giving it exclusive rights for using this brand for 10 years via its Royal Pearls project which is modeled on the lines of a resort. This project covers 4.6 million sq. ft. and encompasses more than 7, 000 freehold apartments. The project will offer premium living areas and natural greenery in addition to several entertainment and recreational facilities. There will be Tonino Lamborghini branded health clubs and cafes among other attractions at this project. Several buyers in Dubai now desire such branded luxury residences and this trend is steadily taking off as per reports.
Branded developments also play a part in drawing investors worldwide and there is a sense of trust which comes from purchasing homes in a project with a renowned brand on board. Several global investors often make their first property investments worldwide in such branded residences. This works as a confidence booster for several first time global investors. Tying up with global brands is a major strategy for several real estate developers now, particularly those who are looking at tapping global buyers who do not possess knowledge of the realty market in the UAE but are familiar with brands which are globally acclaimed.
Emaar has already collaborated with Giorgio Armani while Enshaa has developed Palazzo Versace. Damac Properties has collaborated with Versace, Fendi and Bugatti. Even Al Arkan, the Saudi real estate developer, has confirmed its tie-up with Roberto Cavalli. Branded properties also come at prices which are higher by up to 31% as per reports as compared to non-branded residences in the same category. There is an initial buzz about the branded development which also translates into higher sales figures at times.
Customers should take into account both the global brand and the developer. In case the agreement is between a reputed brand and not-so-prominent real estate developer, it may happen that the agreement was inked only for a year or so and may not be renewed in case the developer does not uphold the quality standards of the brand. Some of the other premium projects that are attracting attention in Dubai include Damac Paramount Tower, Emaar Forte and Azizi Aliyah to name a few.
