Dubai is likely to beat New York as the global branded residences capital by the end of 2019, backed by a pipeline equal to its current supply of over 20 schemes in line with Expo 2020, Savills revealed in its Branded Residences Report released on Monday.
The branded residences sector has grown significantly and it is unlikely to slow down with the number of branded schemes surging by 195% in the last decade and the existence of over 430 branded schemes globally with a combined total of 65,000 units, according to the report.
North America has been home to nearly 40% of all branded residences schemes and the Asia Pacific, led by Thailand and Vietnam, holds 23% of the pipeline, followed by the Middle East and North Africa (MENA) region, Savills said.
The MENA region has been a birthplace to 21% of the branded residences pipeline with the UAE and Egypt accounting for most of the forthcoming supply, the global real estate services provider highlighted.
In the Middle East, Emaar Hospitality Group, a wholly-owned subsidiary of the global UAE-based developer Emaar Properties, is witnessing rapid growth with an extensive pipeline across the UAE and wider Middle East under its Address and Vida brands.
Paul Tostevin, director, Savills World Research, said, “As market conditions and buyer preferences evolve, there is huge potential for the branded residences sector. Branded property is positioned to stand out in more challenging market conditions.”
Moreover, an analysis by Savills analysis indicated that the average premium for branded residences over equivalent non-branded product stands at 35%.