Dubai takes top spot as location for branded residences in Savills study

The global growth of the branded residences sector is forecast to continue, with the Middle East leading the charge by pipeline growth.

 

By scale of increase from current supply of branded residence schemes, Egypt, Saudi Arabia, Cyprus, Qatar, and Costa Rica each recorded growth of more than 300%

Dubai, South Florida, and New York are the top three locations for branded residences globally, based on their supply of completed and pipeline schemes, says real estate advisor Savills in its latest Spotlight on Branded Residences. These areas have well-established luxury property markets and attract a range of domestic and international buyers both for business and cultural activity.

 

Branded residences, as a property sector, have proved to be incredibly resilient in the face of global uncertainty and change. Over the past 10 years, the sector has grown by over 150%, and the pipeline of future branded residences remains strong. Today, there are 640 schemes, accounting for nearly 100,000 units, operating across every continent, except Antarctica. Supply levels are forecast to exceed 1,100 schemes by 2027, nearly doubling current levels.

 

Riyan Itani, head of global residential development consultancy, Savills, said, “After a number of years of evolution, the branded residences sector has proven resilient and adaptable to adverse market conditions, offering security and reliable quality to buyers and attractive returns to developers and brands. With a robust and geographically diverse pipeline, as well as the continued commitment to the sector from developers and brands, the sector is set to continue to expand in the near term.”

 

In the Middle East and Asia Pacific, growth hotspots, both in terms of pure economic growth and wealth creation, are attracting more interest and development from global brands. The regions have seen 400% and 216% increases, respectively, in their levels of supply of schemes over the last decade. The global growth of the branded residences sector is set to continue, with the Middle East leading the charge by pipeline growth. Across the region, current supply is projected to increase 86% by the end of the forecast period. Central and South America (71%) is a close second in terms of supply growth and Europe (55%) completes the top three fastest growing locations.