- The UAE has witnessed a 410% increase in branded residences over the past 10 years
- 69% of Saudi households aim to own branded residences
Riyadh, KSA – 04 June 2024: Select Property, a leading UK-based property developer and investment partner, cites that the UAE has witnessed a remarkable surge in branded residences over the past 10 years while KSA is poised to follow suit. From 2014 to 2024, the UAE’s real estate landscape has seen a tremendous 410% growth in branded developments. With 51 branded projects scattered across the Emirates and a 122% increase in projects having been seen in the past five years alone, Adam Price, CEO of Select Property, explains how the UAE and KSA are spearheading this global trend in the GCC .
In the region, the Kingdom of Saudi Arabia is similarly displaying an increased interest in branded residences. Like the UAE, the Kingdom is greatly contributing to the Middle East’s swift emergence as a hub for branded development activity. In fact, a surge of 65% was seen in KSA’s branded residential development pipeline between 2022 and 2023. Furthermore, with 69% of households in Saudi Arabia aiming to own branded property, the increasing attractiveness of this market segment is evident as it is around the globe.
Select Property has also seen an uptick in UAE and KSA investors who are eyeing branded developments outside of the Middle East; investors from these countries, especially Saudi Arabia, have been keen on securing such residences as trophy assets to diversify their portfolios through in pursuit of additional financial stability and security. In fact, industry analysis forecasts that the UK’s ultra-luxury home values will increase by up to 2%, and the volume of billionaire home deals will rise by 10%, with buyers from Saudi Arabia and the UAE being among the key demographics that will be fuelling these high-end sales.
Commenting on this transformative trend, Adam Price, CEO of Select Property, stated: “Just as customers know what to expect when they book a stay at the Mandarin Oriental versus a Premier Inn, renters are willing to pay a premium for a luxury branded residence as the quality, experience and amenities they can expect are unparalleled. A recent survey shows a striking 85% of GCC respondents expressing growing confidence in UK real estate over the past year. At Select Property, we’ve observed a significant uptick in high-net-worth individuals from Saudi Arabia and the UAE who are investing in the UK property market – we’re also seeing many investors from these demographics pursue branded residences as both an asset and for end use, as they offer more than just living spaces; they redefine the user experience by encapsulating the essence of luxury, quality, and assurance. As investors from the GCC continue demonstrating a desire to own these types of homes, we remain committed to facilitating transactions that make their ambitions a reality.”
In particular, Select Property has observed an uptick in interest from GCC investors in established areas like Birmingham and Manchester; the former is situated less than an hour from London and ranks as the third-best UK city for bringing in graduates with no prior link to the city, while the latter is one of the latest regional economies outside of London and recognised as a top location for business start-ups. Both of these cities have been areas of particular interest for Gulf investors. Birmingham properties offer rental yields of up to 9.3% and its growing population, which is forecasted to hit 1.24 million people by 2030, makes it an emerging hotspot for investment activity and end-users. Similarly, Manchester has seen 85% price growth over the past ten years, reinforcing its stability and appeal to global investors.
Since 2004, Select Property has been developing world-class branded residences in some of the UK’s most desirable cities, including Manchester and Birmingham, with Affinity Living, CitySuites, The Prestige Collection, and One Port Street being among the famed brands delivered to its global clients. While Saudi citizens have long looked to the UK as a desirable market for secondary investment, Select Property has observed an uptick in interest recently; specifically as it relates to investment in luxury branded residences.
