UGANDA, Kampala | Real Muloodi News | Dubai is well-known for its iconic skyscrapers, luxurious lifestyles, and sunny beaches, which make it a favorite destination for rich foreign investors.
Uganda’s ultra-rich are particularly attracted to Dubai’s real estate market due to the more favorable tax environment and considerably lower interest rates in the United Arab Emirates (UAE), which includes Dubai.
For the most wealthy muloodi’s, branded residences like those bearing the names Four Seasons, Bulgari, and Cavalli are emerging as the most popular segment of Dubai’s real estate market.
Foreign buyers continue to purchase ultra-luxury branded homes in Dubai, and sales of these properties are booming. This week, a buyer agreed to pay a record-breaking 203.1 million dirhams (USh208.6 billion / $55.3 million) for a pre-construction, Baccarat-branded five-bedroom apartment.
This purchase breaks a record set in February when a five-bedroom apartment sold for 160.3 million dirhams (USh 164.7 billion / $43 million) in the Bulgari Lighthouse, according to Dubai land records.
The surge in Dubai’s luxury real estate demand occurred as the rich got richer during the COVID-19 pandemic, and Russians sought safe havens for their money after their country invaded Ukraine. Prime real estate prices soared 89% in October from the previous year, recovering quickly from a slump between 2014 to 2020.
According to Knight Frank, the value of branded apartments sold in Dubai reached a record 25.3 billion dirhams ($6.9 billion) in 2022, accounting for nearly a fifth of the value of all apartment purchases in the city.
Villas in a Four Seasons Residences project in Dubai, which sold for about 40 million dirhams in 2021 pre-construction or “off-plan,” are now worth approximately 100 million.
Developers love partnering with luxury brands because they can sell branded residences for 30% more than non-branded ones, depending on the region. The brand typically receives a commission for each sale and an annual management fee, making it a profitable strategy with minimal effort.
Buyers are attracted to branded residences because they have faith in the brand, enjoy higher-level amenities that often outshine non-branded developments, and have the security of a reputable name.
Dubai recently surpassed South Florida to become the spot with the most branded projects globally, with nearly four dozen branded projects in Dubai and a few dozen more announced and set to be built by 2030. A strip of development in and around a man-made portion of Dubai Creek is emerging as a hotspot for these projects.
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