For many years the Dubai property market has been driven by individual projects which have their own identity, however now there is a push towards luxury serviced residences which offer clients a stunning apartment, serviced to the highest levels, while driving impressive rental returns while they are away. Dubai is set to lead the world in this area, and Damac Properties is leading the charge.
Given the size of our operations and expertise in prime locations in Dubai we are able to scale up our business quickly to deliver a comprehensive portfolio of projects across the city, with something for everyone. This year alone, we are on target to complete 3,328 units throughout the region.
We have also recently added a high-end luxury management company, Damac Maison to provide unrivalled lifestyle services to VIP residents in the most sought after projects. Damac Maison will operate in a host of luxury projects in the Burj area and across the region. By the end of the year we will have 4,500 luxury serviced apartments either completed or under construction, primarily in the Burj area of Dubai.
Luxury serviced apartments fit the Dubai real estate market perfectly and match the profile of the buyers. They provide an all-encompassing living experience, taking care of everything from daily maid’s services to arranging overseas travel, booking tickets to that sold out concert, fully-fitted kitchens and 24-hour kids clubs. It offers an aspirational standard of living, consummate with the professionals at the luxury end of the market.
With many owners spending some time during the year away from their Dubai home, serviced residences provides the management of your home while you are away. You can add the property to a rental pool and have someone else find the tenants, agree the contracts, and deal with all paperwork. The client simply collects the rent. This is proving a very popular model with overseas investors in particular.
A report from Knight Frank also recently showed that branded luxury serviced apartments in Dubai are now demanding 58.5 per cent more value than a non-branded apartment in the same area. That increase is more pronounced than any other city that was surveyed, including London, Moscow and Hong Kong. We have recently signed collaboration agreements with the luxury Italian fashion house Fendi, and Paramount – the 101 year old Hollywood movie house, to work with us on delivering 4,000 luxury serviced hotel residences either completed, or under construction by the end of this year.
When developers work with some of the most respected brands in luxury such as Fendi and Paramount, customers know that the interior design and finishing will match the quality the brands have become globally renowned. Not only does this support the proposition in the early stages, branded residences carry a cache for many years which will ensure a long lasting premium on the units.
The speed of growth into luxury branded serviced apartments in Dubai is a clear sign of the development of the emirate. Demand is higher at the luxury-end, where quality of life and the premium standard of living is prioritized. We all work long hours and the time we have at home with our family and friends is of ever increasing importance. As developers compete over the luxury end of the market it is critical to deliver a product which provides a relaxing escape from the busy city, with great views in prime locations. Established international luxury brands provide the experience and confidence to clients that they know what the finished product will feel like.
Dubai has the potential to lead the world in the luxury serviced hotel residences sector. It is a growing Emirate, with visionary backing from its leaders and government. As tourism continues to head towards 25 million visitors a year by 2020, Dubai will continue to expand into a thriving metropolis, linking the East and the West. The real estate market has a key role to play in this — it remains the litmus test for the success of Dubai — and luxury serviced hotel residences is where the market is heading.