The Rise of Branded Residences in Dubai
Market analysts said that Dubai’s realty sector is witnessing a sharp increase in branded residential developments, reflecting not only the growing demand for luxury living but also the willingness of buyers to pay a gratuity for the exclusivity that arrives with a branded residence.
More than 120 branded developments in Dubai this year, a sharp increase from just 69 in 2022. On average, buyers pay up to 69% more per square foot for branded properties than non-branded residences in the exact prime locations, says Thomas Wan, a real estate expert and managing partner at Refine.
A recent survey states 121 branded residential developments in Dubai, of which 47 are finished and 74 are still under construction. These properties have an average price per square foot (psf) of Dh3,852, significantly more than non-branded homes in the same upscale neighborhoods, with an average price per square foot of Dh2,276. These numbers demonstrate the increasing appeal of branded living, especially to affluent consumers who place a premium on convenience, exclusivity, and quality.
The Appeal of Branded Residences
What is the precise reason behind the popularity of branded homes? “Today’s buyers aren’t just looking for a home; they’re looking for a lifestyle. The association with a luxury brand or hotel adds prestige and guarantees a certain standard of service, design, and amenities that discerning buyers expect,” said Wan.
According to property experts, Dubai has emerged as one of the world’s leading hubs for branded residences since the debut of Armani Residences in the Burj Khalifa in 2010. The luxury segment has since expanded into a thriving luxury market segment, attracting top hospitality and lifestyle brands to establish flagship projects across the city.
The Buyer Profile
A variety of foreign investors, expatriates, and affluent locals, many of whom are included in Dubai’s expanding millionaire community, are among the buyers prepared to pay such a premium. “From 2013 to 2023, the number of millionaires in Dubai has surged by 78%, and as the UAE continues to attract wealthy migrants, demand for luxury properties is only expected to grow,” Wan said. “Branded residences are no longer just a niche market; they’ve become a cornerstone of Dubai’s luxury real estate sector. And as more global brands enter the space, we’re only going to see this trend accelerate,” Wan added.
Supply and Demand Dynamics
According to Sukesh Govindan, CEO of 10X Properties, the increasing influx of high-net-worth people (HNWIs) in Dubai has resulted in a large gap between supply and demand for premium branded residences. “The shortage in premium home supplies in Dubai reflects the increasing ‘buy-to-stay’ and ‘buy-to-hold’ mentality among affluent buyers. In what appears to be a sign of growing market maturity, the growing trend among wealthy buyers is to use the units as their primary home or as a holiday home or second home. This significant shift in buyers’ mindset will further broaden the luxury and branded segment’s appeal to investors from across the globe,” said Govindan.
According to Knight Frank’s second annual 2024 Destination Dubai report, 69% of the global HNWIs are interested in owning a branded residential property — up from 59% last year.
Market Performance
Property values in Dubai have risen by 21.3% over the past year amid tightening supply as the ‘buy-to-stay’ trend grows, with villas outperforming apartments. Villa sale prices have grown by 24.3% over the last 12 months, reaching Dh1,896 psf, putting them 28% above the 2014 peak.
Also Read: All details and Services of Dubai Development Authority DDA
The Lifestyle Experience
“These buyers aren’t just after square footage; they’re after a complete lifestyle experience,” Wan explains. “They’re looking for properties that offer exceptional design and architecture and services that make day-to-day living easier and more enjoyable. This is where the branded residence model shines,” Wan said.
More than high-end amenities, such as private pools, rooftop lounges, and in-house dining options, are required. Today’s luxury buyers expect a seamless blend of comfort, privacy, and convenience—often with bespoke services tailored to their needs.
The Branded Residence Advantage
Typically, premium firms or well-known hotel brands collaborate with developers to create branded apartments, which provide tenants with more than simply a place to live. They enjoy many high-end services, from concierge support and valet parking to exclusive access to hotel amenities like spas and fine dining establishments. Luxury living and five-star services make branded residences appealing, especially to those seeking a hassle-free lifestyle.
