It expected the UAE to witness a 22% increase in the number of high net worth families
Savills: Dubai tops the global destination for luxury brand residences
The region will consolidate its leading position in the development of future projects.
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Ryan Itani: “The luxury brand housing sector has proven resilient and has a great ability to adapt to difficult market conditions.”
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Savills, the global real estate consultancy company, issued its latest report on the luxury brand housing sector, in which it indicated that Dubai, South Florida and New York are the global destinations for luxury brand housing, based on the huge levels of supply of completed and future projects in them.
These areas have succeeded in building markets for luxury real estate and attracting a wide range of local and international buyers, taking advantage of their great commercial and cultural activity.
And the company indicated in a statement yesterday that the housing sector belonging to luxury brands has proven great resilience and exceptional ability to face global turmoil and changes. Over the past 10 years, the sector has achieved a growth rate of more than 150%, while continuing to construct more projects at a steady pace. Today, there are 640 residential projects comprising about 100,000 luxury brand housing units spread across all continents except Antarctica, and supply levels are expected to exceed 1,100 projects by 2027, nearly twice the current supply levels.
Economic development hubs and wealth-acquiring destinations in the Middle East and Asia-Pacific regions are attracting increasing interest and renewed investment from global brands.
The two regions recorded an increase in the levels of project bids over the past decade by 400% and 216%, respectively.
The global growth of the luxury brand residences sector is expected to continue as the Middle East region establishes its leading position in future project development, with an expected increase in supply levels of 86% at the end of the forecast period.
Central and South America occupies the second place with expected growth in supply levels by 71%, and Europe comes with 55% in the third place among the most prominent leading development sites in the world.
Forecasts indicate that the United States, the UAE, Vietnam and Mexico will register the largest number of new projects, with more than 30 projects in each country during the expected period, with the United States recording more than 70 expected projects.
Egypt, Saudi Arabia, Cyprus, Qatar and Costa Rica are recording more than 300% growth in the current levels of supply from luxury brand housing projects, which confirms the brands' tendency to enhance 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 housing sector has proven resilient and great ability to adapt to difficult market conditions, providing stability and reliable quality to buyers on the one hand, and attractive returns to companies. And real estate development signs on the other hand.
The sector is on the path of expansion and growth in the short term, in light of the planning of huge projects in various areas, and the confirmation of real estate development companies and brands of 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 enhance their reach and support their business portfolio, as wealthy individuals who are always on the move globally stimulate demand for branded residences. luxury business.
Real estate development companies and brands are seeking to identify the preferred growth sites for high-net-worth individuals in order to improve their offerings. During the past five years, North America recorded the highest growth rates in the number of high-net-worth persons at 53%, followed by the Middle East at 34%, and the Middle East at 34%. Asia and the Pacific, with 31%.
This is consistent with the results of the Savills report regarding the ranking of the regions with the highest levels of growth in the sector during the same period.
He added, “Forecasts indicate that the Middle East region will record a significant increase in the number of high-net-worth individuals over the next five years.
The UAE is likely to witness a 22% increase in the number of high-net-worth families, in addition to the Kingdom of Saudi Arabia, Kuwait and Qatar registering positive growth in the numbers of the wealthy population by 13%, 51% and 22%, respectively, which represents a promising sign for the project market. Residences belonging to luxury brands in the region.
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