The Middle East Observes Steep Rise Across Branded Accommodations in 2020

Over 100 new branded real estate properties have been developed across the middle-east this year and are all categorized under non-hotelier brands.

This showcases the evident and growing interest in real estate in the region. From what was recorded to be a growth of 11% in 2010 has now reached a whopping 16% in 2020, as per reports from global real estate firm, Savills.

Despite this tremendous growth in residential properties, the hospitality industry continues to dominate the real estate space, accounting for over 84% of current schemes.

By 2025, there will be at least 11 new non-hotelier brands that enter the market.

Head of Professional services for Savills, Richard Paul shares how branded residences usually receive a premium of nearly 31% over non-branded properties. Whereas in terms of the middle-east, Dubai has been predicted to become the largest city regarding pipeline schemes, with a major contribution from the biggest developers of the region, Emaar.

Similarly, 12 countries across the world will see their very first branded residential project in the upcoming year, including at diverse locations like Nigeria and Paraguay.

Brazil, UAE and Mexico are counted amongst the fastest-growing countries and will account for the most number of schemes, resulting in a major increase in supply by almost 50% overall.

Other countries like Vietnam, Australia, Morocco and a few more have a pipeline of nearly six schemes per country.

As per Savills, some of the highest premiums are received from emerging countries. For instance, Beijing and Phuket oversaw a premium rate of between 40 to 45%, which is much higher than most competitive markets today.