Savills reports that branded residences have rocketed in popularity
A report from Savils says 100 branded residences have opened across the Middle East region this year.
It finds the growth of the branded residences segment is now greater than the hotel segment, taking up an extra five percent of the hotel market since 2010, now up to 16 percent.
The study said that 11 new non-hotelier brands are expected to enter the market by 2025. However, hotel brands still account for 84 percent of current projects and 88 percent of the pipeline. Savills cited Marriott as the current leading force in the branded residences sector.
Commenting on the study, Richard Paul, head of professional services for the Middle East at the real estate consultancy firm said: “When it comes to price, branded residences achieve a premium, on average, of 31 percent over equivalent non-branded properties, although this figure can vary significantly by location. If we look at Dubai, it is forecast to become the largest city based on pipeline schemes, with a notable increase from Dubai-based master developer Emaar.”
Jaidev Menezes, vice president of Marriott International’s mixed-use development, Middle East and Africa section, said: “Marriott International has a strong pipeline of branded residences across the Middle East and Africa. The growth of the portfolio is fuelled by developer and purchaser demand for our well-established premium and luxury brands, and our proven track record of operating 100 plus branded residence schemes globally.”
He added: “We see continued growth opportunities across the region for co-located projects (hotel/branded residences) as well as standalone branded residences across urban, suburban and resort markets.”
Dubai has 29 branded residential schemes, making it one of the leading destinations for branded residences. Over the next four years, Egypt is set to go from one branded residences to an impressive 18, making it one of the fastest growing countries for the industry. Dubai meanwhile will grow its supply by 50 percent according to the report.