Dubai expects 1,507 branded residences this year
Dubai’s first Andaz branded luxury designer residences opened their doors on the right trunk of the Palm Jumeirah last month. The property boasts 300m of pristine private beach and 116 bespoke units where residents can live the “Andaz” way – rooted in local culture and surrounded by style. This latest addition to the branded residence market in Dubai comes soon after the introduction of the Royal Atlantis Residences, also on The Palm Jumeirah in October. According to the 2019 Savills report on branded residences, Dubai is set to topple New York as the global capital of branded residences. Paul Tostevin, director of Savills World Research, said, “As market conditions and buyer preferences evolve, there is huge potential for the branded residences sector in Dubai. Branded property is positioned to stand out in more challenging market conditions.”
Market pipeline
Declan King, managing director and group head real estate at ValuStrat, said an estimated 1,507 branded units are expected to come into the market this year. The current ready stock of luxury branded real estate in Dubai includes Armani Residences at Burj Khalifa, The Address Residences, Trump Estates, Palazzo Versace, Kempinski, Paramount, Nikki Beach Residences, Ritz Carlton, Fairmont Residences The Palm, Rixos, Anantara and Bvlgari Residences in Jumeirah Bay. As per data on hand, upcoming supply of branded serviced apartments will include Milano Giovanni JVC, The Residences JLT (Vivanta by Taj), Vida Residence The Hills, The Address Residence Sky View and The Address Fountain View 1, to name a few.
With the Palm Jumeirah symbolic of beachfront and luxury resort living in Dubai, Maria Morris, head of residential at Knight Frank Middle East, says the island has cemented its position as one of the best locations, not only in Dubai but globally, for the very best in lifestyle living. “The branded residence offering in Dubai has raised its bar with the introduction of projects such as The Royal Atlantis Residences,” says Morris. “Located adjacent to its sister hotel, the iconic Atlantis The Palm resort, The Royal Atlantis will provide a selection of two-, three-, four- and five-bedroom homes with prices starting from Dh6.995 million.” Morris says such branded units not only benefit from all the world-class amenities and experiences that one would expect from a best-in-class hotel, but they also occupy one of the world’s most prime locations in global real estate terms.
Research by ValuStrat reveals that branded real estate enjoys both higher capital values and improved recurring income from leasing and room rates. “In a region often obsessed with brands, from coffee to cars, real estate is no different. Consumers pay more for property that has the cache of a premium name,” explains Kings. “Property buyers spend more at initial purchase, and tenants pay more to stay. Demand could stem from individuals looking for both an attractive investment as well as a desirable lifestyle. Branded real estate could also provide a certain level of confidence for buyers – especially in emerging and maturing markets – who don’t particularly know who to trust and place their money for investment.”
Morris agrees to this and says, “The appeal of branded residences, not only in Dubai but globally, has strengthened year on year.”
Other recent announcements of branded residences in Dubai include the Tonino Lamborghini Residences in Meydan by Orient Pearls and Damac Towers by Paramount, which is opening in Business Bay. Also, branded real estate under famous personalities are now going in focus. For example, Emaar has a new residential development named after Lebanese designer Eli Saab.
Right operator
The Andaz designer residences will cater to everything from extended business trips to long-term lets. The 25 studio, 66 one-bedroom and 26 two-bedroom apartments range from 46-145 sq m and offer distinctive features, including unique recreational facilities and a variety of dining and entertainment options.
“The global citizen is looking for a more sophisticated offering in Dubai that will elevate their living experience. The added benefit of buying a branded residences is not only the amazing amenities that form part of the overall development, but ultimately it is the credibility of the brand itself,” says Morris. “The level of service and overall experience that a high-end luxury brand brings to a residential development are what set most developments apart when buyers are selecting their next home.
“However, it is important for the brand to be the right one. It is quite simple for a developer to enter into a license agreement with any operator, but for the branded residences to be exceptional, it has to be the right operator that aligns with the level of service that the buyers expect.”
Branded residences offer the best of both worlds – the quality of service of a hotel, with the comfort of a personal space to call home. “In addition, several of the very high-end branded developments will also provide tailored a la carte services for residents from everything such as catering for dinner parties, housekeeping and even down to stocking the fridge,” says Morris. “It is these added extras that our clients value when they are travelling around the world and want to maximise their leisure time in their branded residence with family and friends.”
Buying advantage
Talking about the several advantages to buying branded residences, Morris says the service provision and amenities, the management and guaranteed maintenance of the developments, and most importantly the overall quality are the key points. “It is in the interest of the operators and developers to protect their own brand position, and as such that investment advantage is passed on to the residential element of the development,” says Morris. “In addition, properties with a brand association can command significant premiums ahead of comparable non-branded product, however, this is also coupled with location and the quality of the individual offering itself.”
The Andaz philosophy: Kifah Bin Hussein talks about the designer residences
What is the Andaz philosophy?
Andaz, translated from Hindi, means personal style. We want both our guests and residents to curate their own experience based on personal tastes and preferences, but an Andaz property will also seek out the cultural pressure points of each location – from local artists to regional tastes. It is our aim that everyone who walks through our doors enters a visitor and leaves a local.
Who are the developers of the project?
The developers are Wasl Hospitality, a subsidiary of Dubai Real Estate Corporation, a public corporation established by the government of Dubai.
Do you see a healthy demand for branded residences in the Expo year?
What we are offering both residents and visitors to Dubai are the first Andaz branded luxury designer residences, which deliver impeccable design and competitively priced contemporary living spaces in a prime Palm Jumeirah location. What really sets us apart from competitors is the design and the personalised service, which is delivered by our teams in a friendly and welcoming way. You might be living in a five-star property but it still feels like home.
We expect 25 million visits during Expo 2020. This is expected to have a positive impact and fuel demand across the city’s hospitality scene. In terms of the designer residences, the 25 studio, 65 one-bedroom and 26 two-bedroom apartments are ideal for everyone from single business travellers to families visiting the UAE for the World Expo – particularly as they will give guests a real flavour of the region.
What kind of “ease of living” does Andaz provide?
Our contemporary-designed spaces not only offer value but also the chance for global travellers to embrace the local. Each space is filled with local delights – from geometric rugs inspired by Sadu, an ancient Bedouin embroidery technique, to marble breakfast bars flanked by handcrafted metal sculptures by local artists.
Each designer residence has been individually designed in collaboration with Glintmeijer Design Studio and Akaas Visual Arts, one of the region’s leading art consulting companies. Centered on contemporary Arabic arts and crafts, every square inch has been carefully considered, delivering visual surprises at every turn.
Each apartment has everything a modern traveller might need, from coffeemakers and induction cookers to 50-inch flat panel smart interactive TVs and walk-in closets – but they also offer incredible views across Palm Jumeirah and the city skyline, access to the hotel’s approachable bars and restaurants designed to embrace the local community and, above all, a real sense of style. Residents can expect a range of distinct dining venues, 14th-floor boutique spa, pristine private beach and state-of-the-art fitness centre.
