Dubai: All those hotels and their serviced apartment projects are paying off for Dubai - the city will emerge as the biggest market for “branded residences” by overtaking New York before year-end. This will be “thanks to a pipeline equal to its current supply of just over 20 schemes,” says real estate consultancy Savills in a new report.
With New York in second place, Miami takes up the third spot in the global rankings put out by Savills. In Dubai, there are ongoing projects in various stages of their development cycle, many of them with an eye on completion ahead of the Expo 2020 opening late next year.
New locations such as Deira Islands will host some of these projects, while the Palm continues to retain its favoured destination status. “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,” said Paul Tostevin, director, Savills World Research,
There are more than 430 branded schemes globally with a combined total of 65,000 units. A “record” number of schemes opened this year, with 60 projects delivering more than 9,000 additional branded units across 21 countries, according to Savills’ data. “This record is set to be broken again in 2020 when nearly 70 schemes are due to complete,” the report adds.
“This growth is being driven by the hoteliers with hotel-branded schemes accounting for 86 per cent of the completed schemes and 96 per cent of the pipeline supply. Marriot International, whose brands include Ritz Carlton, St Regis and W, is the market leader and is set to remain so. However Accor is rising fast and has a pipeline equal to Marriott International.
“In the Middle East, Emaar Hospitality Group is growing fast with an extensive pipeline across the UAE and wider Middle East under its Address and Vida brands.”