THE UAE REPRESENTS AN IMMENSELY LUCRATIVE MARKET FOR LUXURY BRANDS.
According to one estimate, on average, the local population allocates an eye-watering 30% of their monthly salaries to the acquisition of high-end goods. It’s hardly surprising, therefore, that hundreds of household names–from designers and automakers to jewellers and horologists–have achieved significant traction in the Emirates.
But increasingly, when we think of luxury in the UAE, we don’t just think of Swiss timepieces and hypercars. More and more people are investing in premium properties that boast designer labels.
From stunning beachfront villas to exquisite apartments with panoramic views of glittering city skylines, Dubai and the wider Emirates boast some of the most breathtaking homes on the planet. And while this was true long before the advent of branded real estate, these partnerships are serving to escalate our real estate sector to the next level.
As a pioneer in this space, DAMAC Properties has witnessed a rapidly increasing appetite among its customers for branded luxury real estate recently in the UAE and Dubai specifically. We have found that the combination of premium properties and world-renowned designers represents the perfect match.
DAMAC’s acquisition of Italian fashion house Roberto Cavalli and Swiss luxury jeweller de GRISOGONO have helped to accelerate our progress in this field, leading not only to diversification in our group’s commercial activities but also new and exciting crossovers within the real estate sector.
In Q3 of 2021, Roberto Cavalli joined us in Dubai for the launch of Cavalli Tower, a 70-storey skyscraper comprising 485 units, which features architectural and interior design overseen by the maestro and his team. The piling works for the Dubai Marina-based superstructure have already commenced, and we expect construction to be completed within four years. Upon completion, this luxurious development will offer occupants an unprecedented combination of exclusive interior design and unparalleled views of the Palm Jumeirah.
Building on this success, our team unveiled Gems Estates, a brand-new ultra-luxury collection of five-to-seven-bedroom mansions located in our DAMAC Hills Community. With exteriors styled by de GRISOGONO, these stunning villas will also feature interiors branded by the team at Roberto Cavalli, making this the first co-branded real estate development in the world.
These are just two of several branded developments that DAMAC Properties is spearheading, and we will continue to explore further collaborative opportunities within this space to cater to ever-increasing consumer demand.
BUT WHY ARE THESE COLLABORATIONS PROVING SO POPULAR?
Well, firstly, they cover a sizeable yet lucrative market demographic, appealing to fans of luxury real estate, fashion, and design alike.
As you might imagine, there is a significant crossover between these segments. Luxury property buyers, for instance, tend to invest in luxury brands. But brand partnerships also have the potential to introduce new audiences to the world of luxury real estate, especially when it comes to younger consumers. By joining forces with household names such as Roberto Cavalli and de GRISOGONO, leading developers can supplement the premium quality of their offerings with unique and exclusive interior and exterior designs.
In the long term, I expect this combination of quality and exclusivity to continue to attract homeowners and property investors, and not only in the UAE. While Dubai and the wider Emirates represent fertile ground for these high-end affiliations, today’s UAE-based projects will also offer blueprints for similar developments in other markets.