UAE developer Ohana Development is teaming up with Manchester City to launch multibillion-dirham branded residences in Abu Dhabi, underscoring demand for luxury properties amid an influx of wealthy buyers.
Manchester City Yas Residences by Ohana, a branded residential community, will be set along the Yas Canal waterfront, the developer and football club said in a joint statement on Monday.
The residences will span across 1.67 million square metres.
Details about the project cost and completion date were not disclosed.
Ferran Soriano, chief executive of City Football Group, said the "landmark" project with Ohana Development will bring Manchester City "to a premium residential environment in a distinctively club-branded way".
Abu Dhabi-based Ohana Development is a luxury property developer that has a portfolio with $5 billion worth of assets, according to its website.
Its flagship developments include the Jacob & Co. Beachfront Living by Ohana, the Elie Saab Waterfront by Ohana, and Ohana by the Sea, located in the UAE.
A branded residences 'powerhouse'
The UAE is a "a global magnet" for luxury living and branded real estate, according to property services company CBRE.
A surge in demand for branded residences is being driven by the UAE's strong economic fundamentals, international wealth migration and an expanding pipeline of branded projects across Dubai, Abu Dhabi, and Ras Al Khaimah, CBRE said in its UAE Branded Residences report last month.
"Abu Dhabi is rapidly emerging as the Gulf's next branded residence powerhouse, offering an attractive alternative to the more mature Dubai market," the report said.
The sector is recording "explosive growth", with a 126 per cent year-on-year increase in transaction volumes in the capital in the first nine months of last year, CBRE data showed.
Branded residences are commanding an average premium of about 87 per cent, compared to standard residences within the same districts, according to CBRE.
Such premiums are due to a limited supply of ultra-luxury residences, in addition to their association with global hospitality brands, it said.
Currently, the deliveries of branded residences are dominated by hospitality operators, a trend expected to continue throughout this year.
However, from 2027 there will be a shift towards lifestyle brands, which take a significant share through to 2029, it said.
This pivot toward lifestyle and designer brands in 2028 and 2029, will see non-hospitality projects account for 44 per cent and 42 per cent of the new supply, respectively.
The market share of branded residences in Abu Dhabi is increasing from under 1 per cent in 2019, to about 2 per cent in the first nine months of last year as major announcements such as Disneyland's new project boosted investor confidence in the capital's long-term luxury and tourism trajectory, CBRE said.
This increase in launches has established a "sizable" future project pipeline, resulting in a peak market share of 18 per cent of unit deliveries in 2029.
The future supply pipeline between 2025 to 2030 includes delivery of more than 2,700 branded units across more than 20 projects, the report showed. Most of these developments are in luxury islands such as Al Saadiyat, Yas, and Al Maryah.
"This diverse influx of units is set to significantly raise the overall quality and profile of Abu Dhabi's offerings and further stimulate demand from foreign investors," CBRE said.
