Partnering with the luxury brands offers developers an advantage in boosting the status of their properties. Henceforth, the high-end designers increasingly turn their talents to constructing fashionable homes.
Dubai Real Estate has witnessed a remarkable 14.42% growth in ultra-high-end prime villa sales in the past quarter compared to last year, reported by the Dubai Land Department. This surge helped luxury brands and high-end real estate flourish together. Both thriving on shared values of exclusivity, quality, and prestige.
It is highly likely that when in pursuit of a luxury property you will want it designed, fitted and furnished with the highest quality products. Luxury brands are renowned for meeting the standards and attention to detail that is demanded by ultra-high-net-worth individuals.
“Luxury living is all-encompassing,” says Daniel Hadi, chief executive of Engel & Volkers Dubai. “People who own a luxury car will likely wear a luxury watch. If they own expensive art pieces, they want them displayed in their luxury home. If the finer things interest you, one tends to go hand-in-hand with the other.”
A lavish investment
Luxury homes with luxury brands make wealthy individuals dreams come true. These homes offer a complete luxury experience, with branded interiors, lavish furnishings, and customized details, creating a full lifestyle of living. For instance, Armani Residences in Dubai is designed by the fashion designer Giorgio Armani. Which shows how luxury brands and property developers can team up to make a super luxurious living experience.
Giorgio Armani was one of the first fashion brands to try real estate in 2005. They teamed up with Emaar Properties in Dubai to make Armani Hotel Dubai and Armani Residences in Burj Khalifa. Together, they made 144 luxury apartments, designed and furnished by Armani, selling for up to $2,500 per square foot.
In 2011, they worked together again for Armani Hotel Milan. In 2022, they planned to build a new hotel in Riyadh, partnering with Diriyah Gate Development Authority and Emaar Hospitality Group. It will be the third Armani property globally, designed by Armani and his interior design team.
“We are in an age where exclusivity, quality and superior experience matter the most to people, and that’s what luxury is all about. It’s natural to see this convergence of prestigious brands with home ownership as the luxury real estate market evolves worldwide,” Hadi explains.
Some other brands investing in Real Estate
The most expensive apartment in Dubai is within yet-to-be-build Bulgari Lighthouse on Jumeirah Bay Island however, it is sold for around $112 million before it’s built. This special apartment has nine bedrooms, three floors, and is really big—about 38,970 square feet. It even has a super large balcony/terrace of about 13,066 square feet.
Looking at the success of others has inspired fashion and lifestyle brands to enter real estate. Versace made the Palazzo Versace Dubai in 2015 and partnered with Damac on a London tower. Elie Saab created luxury residences globally, and Fendi has properties in Miami, Marbella, and Panama City.
Although, luxury watchmaker Jacob & Co is new to real estate but regardless they have big plans. They are building the Burj Binghatti Jacob & Co Residences in Dubai, aiming to be the world’s tallest residential building. Jacob & Co wants to go beyond watches to become a luxury lifestyle brand, including hotels and accessories. The company, founded in 1986, is family-owned, and its CEO, Benjamin Arabov, envisions a future beyond watchmaking. They sell high-priced pieces to clients like Cristiano Ronaldo, Sir Elton John, and Madonna.
Conclusion
Wealthy individuals who are looking to invest in a Dubai property may not know much about the city, the UAE, or the property developer, choosing a luxury brand makes them feel comfortable and reassured. Even if they are unfamiliar with the place, knowing and trusting the brand encourages them to buy, making them less worried about the quality and attention to detail.
In high-end parts of Dubai, a million-dollar home is usually about 1,130 square feet big, according to information from Knight Frank, a real estate company. That’s almost five times bigger than a similar home in Hong Kong and three times bigger than one in London or Singapore.
The UAE has been known for its luxurious and fancy living lifestyle since more than a decade so it is not surprising that luxury brands and high-end real estate have teamed up. Managed residences, where luxury brands and real estate developers team up, help make properties more special and let luxury brands reach more people. It’s a great opportunity for both brands and developers.
