Silvabrand | Dubai Real Estate Leverages High Fashion
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Dubai Real Estate Leverages High Fashion

Jun 13, 2022 | by Team Silva

Dubai, now an epicenter of high fashion, hosts major fashion brands and is home to the largest retail shopping mall in the world. According to David Macadam, CEO and vice-chairman of the Middle East Council of Shopping Centers, this retail growth will not halt anytime soon: ”In the coming years, Dubai is expected to have more brands than any other city in the world topping London.”

Now, we are seeing these high-end brands expand into luxury real estate. Forbes writes that “industry experts note that the branded residences model works best for those relatively new to the Dubai residential market. The target buyer is usually a brand-conscious high net worth investor adding a signature property to their portfolio for prestige value.” And so, well-known names in the fashion world are teaming with developers and adding their reputations and styles to the city’s finest properties.

These arrangements are called horizontal brand extensions, which occur when “a brand name is applied to a new product or service in either a related product class or in a product category completely new to the firm,” Bayes Business School writes. Here’s a look at two successful clothing-to-housing brand extensions that are changing the look of fine living in Dubai, United Arab Emirates.

Forty years ago, renowned clothing designer Elie Saab started a fashion brand centered around grace and elegance, and more recently, he applied those qualities to beachfront properties he designed in Dubai. “Elie Saab is a Lebanese designer who launched his eponymous label in 1982,” according to Fashion Gone Rogue. “Known for his gowns which feature sculpted silhouettes and ornate embroidery, Saab is a favorite amongst royalty and celebrities.” And the rich and famous people who wear Saab’s clothing don’t wear it for just any occasion. Business of Fashion writes that “Queen Rania of Jordan famously wore one of his gowns for her coronation ceremony in 1999. On the red carpet, Halle Berry put Saab on Hollywood’s fashion map when she accepted her 2002 Academy Award in a sheer embroidered gown with a crimson taffeta skirt.”

With Saab’s talent on display at these high-profile events, it makes sense that developers wanted his input and name on their properties. And so, in 2019, Harper’s Bazaar Arabia announced that the iconic designer would be working with Emaar, a Dubai real estate developer, on Saab Residences, which were “the first interiors venture of its kind” for Saab and which were “set to be part of a 20-tower residential community in Dubai Harbour called Emaar Beachfront.” Grand Bleu Tower is one of the towers in Emaar Beachfront that displays Saab’s ability to transfer his design skills from dresses to dwellings. In describing it, Luxury Propterty.com writes that “the architectural style has a contemporary take on Miami’s famous Art Deco District, combining sleek lines and a glittering facade.”

Italian fashion powerhouse Missoni is unsurpassed in the world of knitwear, and now it is making its name in Dubai’s architecture and home design scene. The brand began almost 70 years ago as the[LHS1] result of a romance. “Young Ottavio (Tai) Missoni, a former athletic sprinter, and Rosita Jelmini, a language student, first conceived the company in 1953,” Love to Know writes. “After the couple married, Rosita chose to become the firm’s business manager. With his extraordinary eye for color, Tai focused his efforts on arranging color palettes.”

Tai and Rosita’s collaboration led to remarkable success in the ensuing decades. “From a start in producing the finest knits, the Missoni repertory came to include pullovers, long coats, chemises, trousers, and skirts,” according to Fashion Model Directory. “By the early 2000s, Missoni was more than a vital force in knitwear; the firm had gone far beyond its founders’ original vision to encompass Missoni designs for an entire lifestyle.” Throughout its evolution, the company has had lively aesthetics at its core.

According to Harper’s Bazaar, the late CEO Vittorio Missoni said that “our brand is an experience of happiness, excitement, beauty, creativity, style, and elegance. We create our own style from the seasons of nature, and we play with color; life is more beautiful with color.” And with that dedication to beauty in mind, the Italian clothing company ventured into residential design. “Dar Al Arkan, the Saudi-based real estate company in Saudi Arabia, has unveiled the Urban Oasis residential tower in Dubai in partnership with the luxury Italian fashion house, Missoni,” Arabian Business writes. ”The launch of the AED800 million ($217 million) development marks two significant firsts for both the companies – Dar Al Arkan’s regional expansion with its first project in the UAE and the Arab world’s first bespoke Missoni-inspired living spaces….”

Like Saab, Missoni is taking a cue from the Sunshine State for its decorating plans. Company CEO Livio Proli told PR Newswire that “we’re delighted to be working with Dar Al Arkan on the Urban Oasis project, our first in the region, and are excited to be furnishing these incredible apartments with the finest fabrics and Miami-inspired design, which will give the homes a unique and original finish.”

Studies show that ventures such as Saab Residences and Missoni’s Urban Oasis don’t just look beautiful; they boost profit margins as well. “Research by ValuStrat reveals that branded real estate enjoys both higher capital values and improved recurring income from leasing and room rates,” Gulf News writes. “In a region often obsessed with brands, from coffee to cars, real estate is no different. Consumers pay more for property that has the cachet of a premium name. Property buyers spend more at initial purchase, and tenants pay more to stay[LHS2] .”