“Luxury” is the word that comes to mind when discerning about real estate developers in Dubai. This is neither a novel phenomenon nor a new idea that most elite of luxury brands are a part of the real estate industry in Dubai. The current statistics show that the trend is only increasing, and numerous elite luxury brands are being attracted towards Dubai’s real estate market. There are several names including but not limited to Armani Residences, Fendi Styled Villas, Residences at Palazzo Versace, Just Cavalli, Bvlgari, The Trump Estates, Paramount and Bugatti being some of them.
Just this year, an Italian lifestyle accessories firm known as Tonino Lamborghini developed the first tie-up in Dubai which helped the firm get exclusive rights to Oriental Pearls to be able to use the brand of Tonino Lamborghini for it’s project of Royal Pearls. You can undoubtedly find the finest branded residences and best Dubai apartments on https://www.luxuryproperty.com/
So, What Do the CEOs Say About Branded Properties?
With around 4.6 million-square-ft development, Royal Pearls consists of around 7,000 freehold apartments. It is a huge mega-project and community offers luxurious living including abundant greenery and plantation around the project, spacious living places and superior facilities for entertainment and lifestyle. The CEO of Oriental Pearls, Ma Guolong says that the brand enjoys the relationship with Tonino Lamborghini and best quality services will be offered to the residents. He further says that the Tonino Lamborghini brand promises exemplary quality and this is what our brand’s health clubs, recreational parks, and cafes are going to offer to the residents.
Furthermore, Guolong says that the inspiration for partnership has been expanding in the city. More residential businesses are now developed with an association with an already existing brand. The trend is becoming more common in Dubai with burgeoning competition among the market. The significant increase in demand has also contributed to the packages and deals offered by the real estate market in the city.
The marketing specialist at Gulf Sotheby’s International Realty, Lucie Krepelkoya also comments on a similar phenomenon. She says that collaborating and integrating global luxury brands with local projects helps in gaining the international customer’s confidence. Since they might not have any exposure to the Dubai’s local real estate market, however, the link with global luxury brands helps in winning the trust of foreign clients. They can identify with the brand easily and might even try out the brand due to their unparallel brand loyalty. The heavy presence of such brands helps in making it easier to obtain the foreign customers.
Blending Dubai Real Estate with Global Brands!
Although the practice of identifying local brands with international ones is common now; considering the market trends, it is rapidly growing in the city. More builders now prefer to identify with an international global to increase the investment from a foreign buyer. There are several examples to that including but not limited to Enshaa, which collaborated with Palazzo Versace, Al Arkan, that began working with international brand Roberto Cavalli, Emaar, which linked itself with the famous Giorgio Armani, Damac Properties that has been associating with Versace, Bugatti, and Fendi, to name a few.
Estimating the benefits of working with branded properties is also important. A recent Knight Frank report shows that the brand property prices are around 31% higher than an average non-brand property, which is an enormous difference to compare. Discussing about the returns, Krepelkova further says that a brand can significantly increase the rate of premium in existing projects. She supports her statements by comparing the existing branded and non-branded property rates. Selling price for an apartment in Armani Residence is around Dh3,900 as compared to that of Dh2,400 in Burj Khalifa Apartments. The rent for a single-bedroom unit in Armani Residences is Dh170,000 whereas that for a one-bedroom unit is Dh140,000 in Burj Khalifa Apartments. For two-bedrooms, the rent in Armani Residences goes as high as 400,000 whereas it stays at Dh200,000 in Burj Khalifa Apartments, she says.
With the perks of branded property, there is also a risk for losing the agreement for brand partnership always. This is exactly why the dealers need to be alert, and customers need to be smart before they invest. Sometimes, the agreements are signed for only one year, and the agreement is not renewed if certain conditions are unfulfilled. No matter what the brand name, the customers also need to be wary before they invest their money into buying foreign properties.
The senior vice-president of corporate communications and marketing at Damac Properties, Mr. Niall McLoughlin also comments on the current state of business in the city. He says that the current integration of various brands in a single project is due to the consistent changes and evolution in the desires and preferences of customers. The consumers belong to different locations around the world and so do their tastes. He further elaborates his point by saying that distinct investors from various places around the world are lured by different brands; be it cafes, health clubs, fashion houses or local restaurants. Thus, it becomes very vital to meet the separate demands for a diversified group of clients. For international buyers, there is a huge factor of trust involved: they find it much easier and secure to buy the brands they already know and recognize. For a lot of people, investing in Dubai is usually a first-time experience of infusing their money in foreign property. Therefore, it becomes vital to include the brands in a residential project that international buyers identify with and trust on. It is very important to build rapport with the foreign clients.