Dubai is the number one global destination for luxury brand residences
Savills, the global real estate consultancy, released its latest report on the luxury branded housing sector stating that Dubai, South Florida and New York are the global destinations for luxury branded housing based on the vast supply of completed properties and future projects in them. These areas have managed to develop luxury property markets and attract a wide range of local and international buyers who benefit from their large commercial and cultural activity.
And the company pointed out in a statement yesterday that the luxury branded housing sector has demonstrated great resilience and exceptional ability to face global turmoil and change. Over the past 10 years, the sector has achieved a growth rate of more than 150% while Construction of more projects at a steady pace. Today there are 640 residential projects with approximately 100,000 luxury brand housing units spread across every continent except Antarctica, and supply levels are expected to exceed 1,100 projects by 2027, almost double current supply levels.
Economic development hubs and affluent destinations in the Middle East and Asia-Pacific are attracting increasing interest and renewed investment from global brands.
The two regions have seen a 400% and 216% increase in project offerings over the past decade.
Global growth in luxury branded residences is expected to continue as the Middle East region consolidates its leadership position in the development of future projects, with an expected 86% increase in supply levels by the end of the forecast period.
Central and South America is second with expected supply growth of 71% and Europe is third with 55% among the most prominent leading development locations in the world.
The United States, United Arab Emirates, Vietnam and Mexico are forecast to register the largest number of new projects with more than 30 projects in each country during the expected period, with the United States registering more than 70 expected projects.
Egypt, Saudi Arabia, Cyprus, Qatar and Costa Rica are seeing more than 300% growth in the current supply of luxury branded residential projects, confirming the brands’ tendency to increase their investments in the Middle East and Central and South America regions.
Ryan Itani, Head of Global Residential Real Estate Projects Consulting at Savills, said: “After years of development, the luxury brand’s real estate sector has proven resilient and has great ability to adapt to difficult market conditions while offering buyers stability and reliable quality on the one hand and attractive returns for companies and on the other hand real estate development signs. The sector is set to expand and grow in the short-term, with major projects being planned in various areas and with real estate developers and brands confirming their commitment to support the sector.
For his part, Swapnil Pillay, director of research in the Middle East at Savills, said: “Brands around the world are looking for new locations to expand their reach and support their business portfolio, as wealthy individuals who are constantly on the move globally are spurring demand after branded residences luxury business. Real estate development companies and brands are trying to identify the preferred growth locations for high net worth individuals to enhance their offerings. Over the past five years, North America has seen the highest growth rates in the number of high net worth people at a rate of 53%, followed by the Middle East with a rate of 34% and the Middle East region with a rate of 34% and Asia and the Pacific with 31%. This aligns with the findings of the Savills report, which ranks the regions with the highest growth rates in the industry over the same period.
He added: “The Middle East region is forecast to see a significant increase in the number of high net worth individuals over the next five years. The UAE is likely to see a 22% increase in the number of wealthy families, in addition to the Kingdom of Saudi Arabia, Kuwait and Qatar, which will see positive growth in the number of wealthy residents by 13%, 51% and 22%, respectively promising sign for the project market is luxury brand residences in the region.
#Dubai #number #global #destination #luxury #brand #residences