Abu Dhabi is entering a major growth phase with the development profile of a far more established branded residences market, with 92% of projects in its pipeline now standalone, according to The Brand Standard, the inaugural annual report from specialist advisory firm Global Branded Residences (GBR).
The findings come as the global branded residences sector reaches 1,972 schemes across more than 100 countries, comprising 848 completed developments and 1,124 in the global pipeline.
The Brand Standard also finds that branded residences now achieve an average price premium of 44% compared with equivalent non-branded residential products globally.
Abu Dhabi now has 31 branded residence projects, comprising five completed developments and 26 in the pipeline. This makes the UAE capital the sixth largest city market globally by total project numbers, while its pipeline ranks joint third alongside Cairo and behind only Dubai and Miami.
What distinguishes Abu Dhabi from many other emerging branded residence markets is the speed at which it has shifted towards standalone development, where branded residences are developed without an operating hotel on site, stated the top advisory firm.
Standalone schemes account for 92% of Abu Dhabi’s pipeline and 83% of its total market, compared with 37% of branded residence projects globally.
GBR says the model typically becomes more prevalent as markets mature and buyers, developers and brands become increasingly comfortable with a branded residential proposition that does not rely on a hotel operating alongside it.
Abu Dhabi’s proximity to Dubai has helped accelerate that progression. Dubai is the largest branded residence market in the world and has one of the sector’s most developed standalone markets, with standalone projects accounting for 77% of its pipeline by development type.
Riyan Itani, Founder of Global Branded Residences, said: “Abu Dhabi has the world’s largest branded residences market next door, where developers, brands and buyers have already had significant exposure to the product and to the standalone model in particular.
“That experience is transferable. Abu Dhabi has been able to move much more quickly towards a development model that, in many markets, only becomes commonplace after branded residences have been established for a considerable period of time.”
The emirate’s pipeline spans both major hospitality groups and a growing field of non-hotel brands. Brands represented across Abu Dhabi’s completed and future projects include Mandarin Oriental, Four Seasons, St. Regis, W, Waldorf Astoria, Elie Saab, Jacob & Co., Henge, BRABUS and SHA.
Marriott is the most active parent group in Abu Dhabi with five developments, all of them in the pipeline, followed by Accor with three. At individual brand level, Mandarin Oriental and Four Seasons have two projects each, while Elie Saab is the largest non-hotel brand with two, both in the pipeline.
Abu Dhabi’s expansion forms part of a much wider growth story across Mena, which The Brand Standard identifies as one of the major centres of global branded residential development.
The region now has 426 branded residence projects, including 118 completed developments and 308 in the pipeline. MENA accounts for more than 27% of the global branded residence development pipeline, said the top advisory firm.
The UAE remains the region’s largest market, with 260 projects, including 185 in the pipeline. Saudi Arabia has 60 projects, of which 51 are in development, while Egypt has 46 projects, including 41 in the pipeline, it added.-TradeArabia News Service
