Dubai real estate poised to overtake New York, Miami in branded residences by 2029, ARADA says
Dubai is on track to surpass New York and Miami as the global hub for branded residences by 2029, according to UAE property developer ARADA. The number of branded residence schemes in the emirate is expected to double, increasing from 51 to 106, adding approximately 34,000 new units to the market. This significant growth underscores Dubai’s rapid development and its ambition to become the leading destination for luxury branded living spaces.
Market Momentum and Diversification
Rosa Piro, Senior Business Development Director at ARADA, highlighted Dubai’s innovation and rapid growth in branded residences. “Dubai, which is always at the forefront of all innovation, used to be the third or fourth city by branded residence scheme. And now, within the next decade, the number of schemes is set to double,” Piro said. The market is diversifying beyond traditional hospitality brands like Marriott and Hilton, incorporating fashion, luxury, and entertainment brands such as Armani. This trend reflects a broader shift in the luxury real estate market, aiming to cater to a more varied clientele.
Changing Brand Ratios
Currently, Dubai’s branded residences have a 70/30 split between hospitality and non-hospitality brands. By 2029, this ratio is projected to shift to 55/45, with more brands from fashion, lifestyle, film, jewelry, design studios, and celebrities entering the market. “You also will see a more varied diversification on the typologies of brands,” Piro explained. This diversification is expected to enhance the appeal of branded residences to a broader range of investors and homeowners, further solidifying Dubai’s position in the global market.
Luxury Projects and New Markets
ARADA is at the forefront of this trend with projects like the Armani Beach Residences on Palm Jumeirah. This exclusive development, featuring 53 apartments, offers “subtle luxury” and has been a top-seller. The project was personally overseen by Giorgio Armani, promoting a unique and luxurious living experience. Additionally, ARADA is exploring expansion opportunities in Saudi Arabia, Australia, and Europe, with Italy and the UK mentioned as potential markets of interest. These expansions are part of ARADA’s strategy to leverage its expertise in branded residences and capture new markets.
Strategic Growth and High Demand
ARADA ranks 14th in Dubai for branded residence units and is tied for 10th in the number of schemes. With upcoming high-profile projects in Dubai Harbour and the International Financial Centre, the company is set to enhance its market position significantly. The branded residences boom is not limited to Dubai; ARADA has also introduced the concept to Sharjah, launching partnerships with EMAAR Hospitality for Vida Residences, Rove Home, and Anantara Residences. These projects have seen strong demand, with Piro noting that the Anantara project achieved “the highest rates in Sharjah, 2500 per square foot, which for Sharjah, is incredible.”
Waterfront Properties and Diverse Buyers
Developers are increasingly focusing on waterfront properties, which are highly preferred by clients for their calming and tranquil environments. “Whenever we look at holding value of apartments, holding value of properties, having water views, especially in a place like the UAE, where it helps create a sense of calm and tranquillity,” Piro explained. These projects are very much preferred by our client base. The buyer profile for these luxury properties is diverse, with a mix of end-users and investors. ARADA’s data shows that UAE nationals make up 36% of buyers, followed by Saudi Arabians at 10%, and a mix of other nationalities including Egyptians, Brits, and Russians.
ARADA’s Strategy and Market Impact
ARADA’s strategy focuses on aligning with broader market trends while capitalizing on Dubai’s growing appeal as a global destination for luxury living. The developer’s growth strategy is supported by its strong performance in both Dubai and Sharjah, where it continues to launch high-demand branded residences. The company’s ability to attract diverse investors from around the world, combined with its innovative project designs and strategic locations, positions it well for future growth. As the branded residences market continues to evolve, ARADA is poised to play a key role in shaping its future, both in the UAE and internationally.
Reference: Arabian Business
