Luxury brands and high-end real estate properties have long been associated with each other, particularly in the UAE – where they have seen tremendous growth in recent years. These two industries share several similarities, including their focus on exclusivity, quality and prestige – perhaps making them the perfect match.
If you’re looking for a luxurious property, chances are you’ll want it designed, fitted and furnished with the highest quality products and great attention to detail. And, of course, luxury brands are synonymous with the levels of quality and attention to detail that UHNWIs demand and expect.
One of the most apparent benefits of partnering with luxury brands for real estate developers is the ability to elevate the status of the properties, making them more appealing to high-end clients. For example, Armani Residences in Dubai, designed by renowned fashion designer Giorgio Armani, serves as a prime example of how high-end brands and real estate developers can come together to create a luxurious living experience.
Dubai’s most expensive apartment lies within the yet-to-be-built Bulgari Lighthouse on Jumeirah Bay Island. It recently sold, off-plan, to an undisclosed buyer for some US$112 million. But this is no ordinary apartment; it’s a nine-bedroom, three-storey, 38,970 square feet property, with a balcony/terrace measuring some 13,066 square feet.
The Italian-designed property sits on its own private island, featuring a Bulgari hotel, marina and yacht club. The sky villa penthouse includes a private rooftop garden and a private pool. Luxury is certainly the watchword here.
Of course, luxury brands can benefit from partnering with high-end real estate developers to expand their reach and customer base. Managed residences are an excellent opportunity for luxury brands to showcase their products and services to an affluent audience. Luxury brands can use the managed residence as a flagship store or showroom to display products, while real estate developers can use high-end brands to market their properties to a broader audience.
Wise developers employ renowned architects and designers, but what really puts the icing on the property cake is an association with a luxury brand. Those in the know, know that a property managed – or even simply associated with a global jewellery, fashion or furniture brand – will deliver the levels of luxury and service they expect.
A luxury property purchase is an investment, of course, and another reason why people are looking to buy properties associated with brands is that that brand association adds cache to the investment and is another factor in maintaining – or increasing – the value of the property.
Buying into the concept of a managed or serviced property, or even one simply featuring interior design from a renowned brand, offers investors a strong indication of reliable maintenance, too. A luxury brand would not want to associate with a developer or development that is considered sub-par, or one where a developer has taken shortcuts.
Association with a luxury brand offers comfort and reassurance for a wealthy individual looking to invest in a Dubai property for the first time. They might not be too familiar with the city, the UAE, or the property developer, but their familiarity with the brand will certainly act as an encouragement to purchase, assuaging any doubts as to quality or attention to detail.
Size matters, too. A million-dollar property in one of Dubai’s upscale areas averagely offers around 1,130 square feet, according to data gathered by real estate firm Knight Frank. This is almost five times larger than a comparable home in Hong Kong – and three times larger than one in London or Singapore.
The UAE has enjoyed a long association with upmarket, luxurious living, so it’s perhaps no surprise that luxury brands and high-end real estate properties go hand in hand in the UAE. From elevating the status of properties to expanding the reach of luxury brands, managed residences are an excellent opportunity for brands and real estate developers alike.