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      By Sonali Chougule

      Published: November 8, 2024


      Tags
      • commercial

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      13 November 2024
      Branded Residences in India: A New Standard for Luxury and Investment

      Branded residences are not just rewriting the contours of high-end real estate in India, they’re also redefining it into a distinctive investment category. These properties are rapidly shifting from rarefied luxury to offering an enduring, brand-backed investment that blends lifestyle and legacy.

      Key Characteristics of Branded Residences

      Branded Residences differ from conventional luxury homes. These properties are associated with globally recognized brands, often from the hospitality sector but increasingly from the fashion, automotive, and lifestyle industries as well. They embody the brand’s signature service and design standards, creating a lifestyle experience rooted in exclusivity. Over the years, branded residences as a category have grown by over 170% and are expected to grow further (Savills 2020).

      Initially, these residences were extensions of nearby hotels, providing exclusive hotel services such as concierge, valet, and housekeeping. The branded residences concept dates back to 1927, when New York’s iconic Sherry-Netherland Hotel partnered with the renowned Sherry’s restaurant, paving the way for today’s branded living experiences.

      Over time, the branded residence concept evolved far beyond hospitality perks. They are celebrated across the world for their exclusivity, meticulous design, technology, world-class standard of living, and service excellence. Branded residences typically hold a 31% higher value than similar non-branded properties (Knight Frank 2012).Today, these homes include a suite of wellness and lifestyle amenities such as pools, spas, private dining, and even artfully curated experiences catering to the tastes of sophisticated buyers.
      Non-hospitality brands like Versace, Armani, YOO, and Trump Towers have also entered the market, delivering a lifestyle rooted in the allure of a globally recognized brand, while blending world-class services. YOO has been a leading name in the non-hotel branded residences category, with 98 projects across 47 cities and 36 countries.

      Branded Residences typically fall into two categories:

      1. Standalone Branded Residences- These properties, often built without adjoining hotels, focus on providing exclusive living without shared hospitality amenities. Notable examples include the Trump Towers, YOO, Armani Residences, Bugatti Residences, and many more.

      2. Integrated Branded Residences with Hotels - These projects feature both residential and hotel components, allowing residents to enjoy a wide range of hospitality services. Three Sixty West in Mumbai stands as a prime example, blending residential living with access to Ritz Carlton hotel amenities. Upcoming developments, such as the Westin Residences in Gurugram (set to be India’s largest branded residences project globally) and JW Marriott Residences in another major city, further exemplify this model.

      Branded Residences Market in India

      Worldwide, there are over 105,000 branded residence units across 750 projects, with India capturing a 3% share of this market. By 2027, the number of these projects is expected to rise by nearly 60%, reaching around 1,200 projects (Economic Times, 2024).

      Internationally recognized brands like YOO, Trump Towers, Marriott, Accor, Wyndham, Swarovski, along with leading Indian brands such as IHCL (Indian Hotels Company Limited) and Oberoi, are expanding their branded residences in India. While branded residences are already popular in cities like Mumbai, Delhi, and Pune, they are also expanding into emerging markets such as Bhubaneswar as India's luxury property demand grows.

      Bhubaneswar's real estate market is set up for substantial growth, supported by a strong baseline of economic development and increasing demand for luxury living. The city is rapidly evolving as a hub for IT and education, attracting professionals and businesses. The interest in upscale living experiences reflects the region’s growing aspiration for elevated lifestyle choices, making Bhubaneswar an emerging luxury market with significant potential.

      The launch of Odisha’s first branded residences, DN YOO Odisha, by DN Homes in collaboration with YOO and internationally acclaimed designer Philippe Starck, marks a new era for Bhubaneswar’s luxury real estate. Offering 3 and 4-bed branded residences across 3 three towers, this project offers state-of-the-art amenities such as 3 outdoor swimming pools, herb garden, sky gardens, sky terraces, an exclusive 44,000 sq.ft. clubhouse, etc. This project marks the third project of Philippe Starck in India and the first-ever in East India

      The growth of India’s branded residences is strongly driven by the lifestyle expectations of high-net-worth individuals (HNWIs) who live globally and often own properties around the world. They now seek similar standards of design, architecture, technology, and service here in India, mirroring the experiences they enjoy internationally.

      Over the past two decades, branded residences have secured a firm place in luxury real estate. Surviving the 2008 recession and demonstrating impressive recent growth, it seems like this concept is here to stay!

      13 November 2024
      Top 5 Property Investment Hotspots in Dubai for 2025

      As Dubai’s real estate market continues its dynamic growth, investors have the unique opportunity to leverage high returns on properties that cater to both residential and commercial demands. The city’s robust economy, dynamic infrastructure, and world-class amenities make it a prime destination for property investment.The first half of 2024 alone saw over 43,000 property transactions valued at approximately AED122.9 billion, marking a 30% increase from the previous year. This growth is partly due to the rapid absorption of new inventory, with 80% of units launched since 2022 already sold.

      While Dubai’s established areas still hold value, certain emerging neighborhoods promise competitive investment returns. This article highlights top investment areas in Dubai for 2025, that are poised for strong growth and provide investors with lucrative opportunities.

      1. Dubai Creek Harbour

      Investment Highlights:

      • Projected Rental Yield : Up to 6%
      • Capital Appreciation : 16%
      • Type : Residential, Mixed-Use
      • USP : Scenic Waterfront & Proximity to Downtown

      Dubai Creek Harbour is quickly establishing itself as a sought-after neighborhood with its integrated waterfront development, comprising residential spaces, commercial hubs, and tourism attractions. Located just minutes away from Downtown Dubai, it offers residents a serene escape with stunning views of the Dubai skyline and direct access to Dubai Creek. This area’s allure is strengthened by its ambitious architectural projects, including the future Creek Tower, poised to be one of the tallest in the world. Investors are increasingly drawn to its luxury waterfront residences, with rental yields rivaling some of Dubai’s most established areas.

      Why Invest?

      Dubai Creek Harbour combines accessibility with exclusivity. Its mixed-use developments, with a sustainable focus and urban connectivity, make it a promising choice for those looking to secure high ROI in the residential and commercial leasing sectors.

      2. Business Bay

      Investment Highlights:

      • Projected Rental Yield: 6%
      • Capital Appreciation : 10%
      • Type : Commercial, Residential
      • USP : Prime Location & Commercial Appeal

      Business Bay remains a preferred hub for investors looking for well-rounded, high-yield investment opportunities. Situated adjacent to Downtown Dubai, it offers seamless connectivity, upscale amenities, and a high demand for commercial spaces. The influx of corporate tenants, multinational companies, and freelancers continues to drive up occupancy rates, especially for office spaces, which boast impressive rental yields.

      Why Invest?:

      With a strategic location near the Dubai Canal, Burj Khalifa, and Dubai Mall, Business Bay offers a competitive investment opportunity. Its mix of commercial and residential properties enables a balanced portfolio approach, appealing to both investors and end-users alike.

      3. Jumeirah Village Circle (JVC)

      Investment Highlights:

      • Projected Rental Yield: 8%
      • Capital Appreciation : 12%
      • Type : Residential
      • USP : Affordable Housing & Growing Community

      For those seeking investment options in affordable housing, Jumeirah Village Circle (JVC) has emerged as a top contender. JVC has shown significant rental demand due to its appealing balance between affordability and quality. The area is home to several parks, schools, and retail centers, attracting families and young professionals seeking a self-contained community.

      Why Invest?

      JVC’s rental returns are notable, especially in the apartment and townhouse categories, where yields can reach up to 8%. With ongoing infrastructure improvements, this community-centric area is set to witness further appreciation, making it a prudent choice for long-term investors.

      4. Dubai South

      Investment Highlights:

      • Projected Rental Yield: 7%
      • Capital Appreciation : 18%
      • Type : Residential, Mixed-Use
      • USP : Proximity to Expo 2020 Site & Al Maktoum International Airport

      Dubai South, located near Al Maktoum International Airport and the Expo 2020 site, continues to capture attention for its ambitious development plans and strategic importance. The district offers diverse investment opportunities, from affordable housing to mid-range apartments and villas, making it versatile for investors with different risk appetites.

      Why Invest?

      Dubai South’s connectivity to key transportation hubs, like the Al Maktoum International Airport, is a major draw. The recent focus on this area’s development post-Expo 2020 has ensured sustainable urban planning, making it a forward-looking investment for those eyeing medium to long-term gains.

      5. Dubai Marina

      Investment Highlights:

      • Projected Rental Yield: 9%
      • Capital Appreciation : -10%
      • Type : Residential, Hospitality
      • USP : Lifestyle Appeal & Tourism Draw

      Dubai Marina remains an iconic waterfront district with enduring appeal for both residents and tourists. With its luxury towers, retail options, and world-class marina, this area has an established rental market that commands high occupancy rates. The demand from expatriates and tourists keeps property values stable, while providing rental yields that are above average.

      Why Invest? :

      As one of Dubai’s most popular areas, Dubai Marina offers solid rental income and capital appreciation potential, particularly in the luxury apartment market. Its reputation as a premier lifestyle destination ensures enduring demand, giving investors a reliable and steady income source.

      Final Thoughts

      As Dubai’s real estate market continues to mature, these emerging and revitalized districts represent significant opportunities for investors seeking strong returns. Each of these five locations is characterized by unique growth drivers, such as connectivity, lifestyle offerings, and a focus on mixed-use development. However, investors should carefully consider their investment objectives, as the ideal area will vary based on rental yields, property type, and long-term growth potential.

      With proper due diligence and market insights, the new year 2025 could mark a lucrative year for real estate investments in Dubai, positioning these areas as key to capitalizing on Dubai's continued growth trajectory.

      As Dubai’s property market continues to offer compelling opportunities, SQUAREA is here to guide you in making well-informed, strategic investments. Our team of experts can help identify properties that align with your investment goals—whether you seek high rental yields, capital appreciation, or portfolio diversification. From market insights to end-to-end support, SQUAREA offers a tailored approach to help you maximize returns in Dubai’s thriving real estate landscape.

      6 November 2024
      Diversification with SM REITs: A Smart Move for Risk-Averse Investors

      For a long time, commercial real estate has been the domain of large institutional investors and high-net-worth individuals. However, the launch of Small and Medium Real Estate Investment Trusts (SM REITs) is redefining this notion, offering a pathway for smaller investors to participate in the lucrative world of commercial real estate.

      So, what exactly are SM REITs, and why are they capturing the attention of cautious investors?

      Understanding SM REITs

      Small and Medium Real Estate Investment Trusts (SM REITs) are emerging as a sophisticated investment option, offering a strategic pathway into commercial real estate without the need for direct ownership. Structured as pooled investment vehicles, SM REITs allow investors to participate in high-quality commercial properties, from office buildings to logistics hubs and warehouses, generally valued in the ₹50–500 crore range. Unlike traditional REITs, which often target large institutional investors, SM REITs are specifically tailored to meet the needs of smaller investors. By lowering the capital entry barrier, SM REITs enable a more diversified, accessible approach to commercial real estate, allowing investors to gain exposure to income-generating assets with strong growth potential in India’s thriving property market.

      With a minimum investment of ₹10 lakh, investors can own a portion of prime, income-generating real estate. Now, even smaller investors can secure a foothold in the commercial real estate sector, participating in properties that are not only income-generating but also possess capital appreciation potential.

      Why SM REITs Matter for Diversification

      1. Portfolio Diversification Across Commercial Real Estate Segments

      SM REITs open doors to various segments within commercial real estate, including office spaces, warehouses, and logistics centers. For cautious investors, this diversification spreads risk across different asset types, offering exposure to multiple income-generating sources without the administrative complexities of direct property ownership. Diversifying through SM REITs enables investors to mitigate risks associated with single-sector investments and capitalize on the robust growth projected across India’s commercial real estate landscape.

      2. Liquidity and Flexibility Through Market Trading

      One of the significant advantages of SM REITs over traditional real estate ownership is liquidity. Unlike direct property investments, which are often illiquid and challenging to divest quickly, SM REITs are publicly traded on stock exchanges, allowing investors to buy or sell units as per market demand. This liquidity offers a substantial advantage to those who may need to exit their investments or rebalance their portfolios without the constraints associated with physical property.

      3. Regulatory Oversight and Income Stability

      The Securities and Exchange Board of India (SEBI) regulates SM REITs, providing a level of transparency and security that private real estate investments often lack. This regulatory oversight ensures adherence to high standards of governance and operational transparency. Additionally, SM REITs are mandated to invest at least 95% of assets in completed, rent-yielding properties priced above Rs 25 crore and less than Rs 500 crore with units to be issued to a minimum of 200 investors, ensuring asset quality and investor safety.

      For risk-averse investors, this aspect of income stability, combined with regulatory safeguards, enhances the appeal of SM REITs as a reliable investment.

      The Growth Trajectory of India’s SM REIT Market

      India’s SM REIT market is still in its early stages, but the growth potential is compelling. The launch of the first SM REIT IPO in August 2024 was a pivotal moment, representing the beginning of broader acceptance and development within this segment. Industry analysts anticipate a rapid expansion in this space.

      Research projects that the market will grow to over 300 million sq. ft. of completed with an addition of 50+ million sq.ft expected to be added by 2026. These numbers pertain to mid-sized (0.1 – 1 million sq.ft), investment–grade office developments in India’s top 7 cities as of Q2 2024.

      Integrating SM REITs into an Investment Portfolio

      For those who have traditionally avoided real estate due to high capital requirements or lack of liquidity, SM REITs offer a compelling alternative. With their mix of real estate stability and stock market liquidity, SM REITs bridge the gap between direct property investment and the flexibility of publicly traded assets, positioning them as a valuable addition to modern investment portfolios.

      The emergence of SM REITs is transforming India’s commercial real estate market, offering retail investors an unprecedented opportunity to diversify their portfolios with high-quality real estate assets. With regulatory backing, attractive entry points, and market flexibility, SM REITs are well-suited to meet the needs of evolving investors in India.

      As SM REITs become a pivotal part of a balanced investment strategy, SQUAREA offers the expertise to guide you in this promising sector. Connect with us today to explore tailored solutions that align with your investment goals.