Dubai's luxury property boom set to continue

Demand is the core driving factor for developers

by

Somshankar Bandyopadhyay

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Published: Sun 23 Jul 2023, 7:07 PM

Last updated: Sun 23 Jul 2023, 7:41 PM

Dubai has the world’s strongest luxury property market, and the trajectory is expected to continue, according to a leading industry expert.

“Traditional branding has involved hospitality and fashion brands collaborating with property developers and we are already seeing watch makers and automotive brands coming into the fold. We expect the future to bring wellness, technology and others to also collaborate and bring unique lifestyle offerings to the market,” Shreen R Gupta, CEO & Partner Grid Properties, told Khaleej Times in an interview.


Grid Properties has a strong presence in major international markets, including the United States, the United Kingdom, Europe, and Asia, and is now offering investment opportunities to GCC investors who are looking to diversify their investment portfolios and capitalise on the potential of these markets.

In addition to these, Grid Properties has also been instrumental in the development of Elie Saab Residences, the £175 million Lucan project in London, as well as CQ Hub, a group of 61 warehouses at Dubai Production City, Costra - 02 at IMPZ and several other projects at Warsan, Jumeirah Village Circle (JVC), Sports City and Mohammed bin Rashid City.


Excerpts from the interview:

What are the factors driving this surge in Dubai’s property market?

Demand is the core driving factor for developers and in Dubai’s dynamic market innovation is the key characteristic. Lifestyle and branded developments reach synergy at higher price brackets, here the customer already expects the highest quality however the synergy with the brand brings a unique experience and lifestyle that enhances the value of the property. At lower price points this just simply is not the case. Premium consumers are becoming more discerning and brand-conscious, not just in the products they purchase but also in the experiences they seek. Lifestyle and branded property developments offer a sense of exclusivity, quality, and lifestyle that resonates with global property investors. Branded premium property developments have global appeal, attracting both local and international buyers. Investors see branded properties as a safe and potentially lucrative investment, leveraging the brand’s reputation to command premium pricing and rental income.

Shreen R Gupta, CEO & Partner Grid Properties.— Supplied photo
Shreen R Gupta, CEO & Partner Grid Properties.— Supplied photo

What are key factors involving lifestyle property development?

Brand partnerships add a layer of exclusivity and prestige to a property development. Their unique positioning and appeal often have strong long-term investment potential due. The focused nature of these developments can create a sense of scarcity and exclusivity, driving demand in the market. Additionally, the targeted lifestyle and specialised amenities attract buyers who are willing to pay a premium for the enhanced quality of life and the potential for capital appreciation. Lifestyle property developments collaborate with established brands to enhance their appeal and offer unique experiences to residents. These collaborations can involve renowned architects, interior designers, fitness trainers, hospitality brands, or lifestyle brands that resonate with the development’s theme.

What locations best serve for these properties?

We conduct thorough market research, analyse demographic trends, consider infrastructure and connectivity, and assess the local regulatory environment when evaluating potential locations for lifestyle property developments. The decision-making process is designed to ensure a strong alignment between the location and the desired lifestyle experience and each project’s unique concept and target market. Global property hotspots like London and Dubai offer an ideal destination with waterfront locations, iconic destinations and landmarks as well as golf communities being the most in demand.

Who are the target customers for such properties?

Customers that are seeking enhanced amenities and services that go beyond what traditional properties offer. Buyers want luxury spas, concierge services, exclusive clubhouses, branded retail outlets, and access to unique experiences. Such offerings cater to the growing demand for a higher level of convenience, luxury, and personalised experiences. The changing nature of how we live, work and interact requires an enhanced lifestyle experience in our homes and this is what investors and end users demand.

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