Branded Residences Emerge as Top Investment Choice

IPS Congress - Blog | Branded Residences Emerge as Top Investment Choice

In the ever-evolving landscape of real estate, a distinctive trend is capturing the attention of discerning property investors worldwide – the rise of branded residences. As per the latest insights from global real estate consultancy Knight Frank, the appeal and investment potential of branded homes are experiencing a remarkable surge, with notable projects and developments shaping the market landscape. 

Knight Frank's data reveals a significant presence of branded residences across diverse regions. The United States leads the pack with a staggering 36 schemes, underscoring the robust demand for this unique real estate offering. The United Arab Emirates (UAE) follows closely with 7 schemes, reflecting the Middle East's embrace of luxury living. Mexico, the United Kingdom, and Saudi Arabia each boast 7, 5, and 4 schemes, respectively, showcasing a global trend that transcends borders.

One standout example of the burgeoning trend is Wow Resorts' collaboration with JW Marriott in launching the JW Marriott Al Marjan Island Resort. This opulent project, estimated at a value of $1.3 billion upon completion in 2026, epitomizes the allure of branded residences. Comprising 524 residences, including one, two, three, and four-bedroom apartments and penthouses, the development promises not only luxurious living spaces but a comprehensive lifestyle experience. 

The amenities offered by JW Marriott Al Marjan Island Resort are nothing short of extraordinary – seven dining venues, a spa, pools, and a fitness center. The construction, set to commence in February 2024, is a testament to the meticulous planning and commitment to delivering a world-class living experience. 

In a similar vein, Durar Group's Masa Residence on Al Marjan Island is a testament to the fusion of luxury and creativity. Boasting an estimated project sales value of Dh700 million, this development features 396 branded homes, including studios, one-bedroom, and two-bedroom apartments, as well as eight villas. The project, under the creative direction of renowned French designer Philippe Starck, is set to be completed by the second quarter of 2026. 

Aldar Properties, a key player in the UAE's real estate landscape, has unveiled Nobu Residences Abu Dhabi. Situated on Mamsha Al Saadiyat, Saadiyat Island, this development comprises 88 apartments, ranging from one to three bedrooms, two-bedroom lofts, penthouses, and sky villas. The addition of a Nobu Hotel with 125 rooms and a Nobu restaurant further elevates the living experience, seamlessly blending hospitality and residential elegance. 

Huspy, a property technology start-up and mortgage provider, sheds light on the financial aspect of investing in branded residences. The average price range for these prestigious homes spans from Dh2.5 million to over Dh20 million, catering to a diverse range of investors. Noteworthy examples include the Bugatti Residences, where an impressive 44,000 square foot, eight-bedroom house is listed at Dh750 million. The data also highlights a growing interest in projects with global brand collaborations, such as Bugatti-Binghatti, Omniyat Vela Dorchester Collection, and Elie Saab villas. 

As investors explore these luxurious opportunities, the International Property Show (IPS) 2024 becomes a pivotal platform for connecting them with viable investment opportunities. IPS 2024’s vision, aligning with the essence of branded residences, is to be the leading global real estate platform, offering comprehensive services for property purchases. 

Branded residences command premiums ranging from 10% to 20% above unbranded counterparts, reflecting the perceived value associated with renowned brands. The scarcity of units, as observed in projects like Caesars Residences and Bulgari Lighthouse, contributes to higher premiums. While service charges for branded residences can be double compared to unbranded counterparts, the enhanced facilities and five-star services, including housekeeping, valet, and concierge, justify the added cost. 

At IPS 2024, developers can showcase their projects to both local and international investors, expanding their market reach. This collaborative effort between developers and investors, facilitated by IPS, underscores the significance of such events in the dynamic real estate landscape.