Savills, the leading global real estate advisors, have published research highlighting the growth of the branded residences sector across the Middle East, with 100 schemes opening recorded this year despite the pandemic and wider economic situation.
Over the past 10 years, the growth of such schemes has outpaced hoteliers, rising from 11% of the total market in 2010 to 16% in 2020. Eleven new non-hotelier brands are expected to enter the market by 2025. However, hotel brands still dominate and account for 84% of current schemes and 88% of the pipeline. Marriott, whose brands include W, The Ritz-Carlton and St Regis, is by far the leader in the sector and is set to remain so.
Richard Paul, Head of Professional Services for Middle East at Savills, said: “When it comes to price, branded residences achieve a premium, on average, of 31% over equivalent non-branded properties, although this figure can vary significantly by location.”