Dubai's real estate sector is experiencing a significant surge in branded residential developments, indicating a rising demand for luxury living and a willingness among buyers to pay a premium for the exclusivity associated with branded residences, according to market analysts.
As of this year, over 120 branded developments have been launched in Dubai, a notable increase from the 69 recorded in 2022. On average, buyers are paying up to 69% more per square foot for branded properties compared to non-branded residences in prime locations, according to Thomas Wan, a real estate expert and managing partner at Refine.
A recent report reveals that Dubai now boasts 121 branded residential developments, with 47 completed and 74 under construction. The average price per square foot (psf) for these properties is Dh3,852, significantly higher than the Dh2,276 average for non-branded residences in the same prime areas. These figures underscore the increasing appeal of branded living, particularly among high-net-worth individuals who prioritize exclusivity, quality, and convenience.
The driving force behind this interest in branded residences? “Today’s buyers are seeking more than just a home; they’re looking for a lifestyle. The association with a luxury brand or hotel not only enhances prestige but also ensures a certain level of service, design, and amenities that discerning buyers demand,” Wan explained.
Dubai has emerged as a global leader in branded residences since the introduction of Armani Residences in the Burj Khalifa in 2010. The luxury segment has since flourished, drawing top hospitality and lifestyle brands to launch flagship projects across the city. Buyers willing to pay a premium include a mix of international investors, expatriates, and wealthy residents, many of whom are part of Dubai’s expanding millionaire population.
“From 2013 to 2023, the number of millionaires in Dubai surged by 78%, and as the UAE continues to attract wealthy migrants, demand for luxury properties is expected to grow,” Wan noted. “Branded residences are no longer a niche market; they’ve become a cornerstone of Dubai’s luxury real estate sector. With more global brands entering the market, this trend is likely to accelerate,” Wan added.
Sukesh Govindan, CEO of 10X Properties, highlighted that the demand for luxury branded homes in Dubai far outstrips supply due to the influx of high-net-worth individuals (HNWIs). “The shortage in premium home supplies in Dubai reflects the growing ‘buy-to-stay’ and ‘buy-to-hold’ mentality among affluent buyers. This shift in mindset, indicating market maturity, is broadening the appeal of luxury and branded segments to investors worldwide,” Govindan said.
According to Knight Frank’s 2024 Destination Dubai report, 69% of global HNWIs are interested in owning a branded residential property, up from 59% last year. Property values in Dubai have risen by 21.3% over the past year amid tightening supply and the growing ‘buy-to-stay’ trend, with villas outperforming apartments. Villa sale prices have increased by 24.3% over the last 12 months, reaching Dh1,896 psf, 28% above the 2014 peak.
“These buyers are not just seeking square footage; they’re after a comprehensive lifestyle experience,” Wan explained. “They want properties that offer exceptional design, architecture, and services that enhance daily living. This is where the branded residence model excels,” Wan concluded.
High-end amenities like private pools, rooftop lounges, and in-house dining are now standard. Luxury buyers expect a seamless blend of comfort, privacy, and convenience, often with bespoke services tailored to their needs. Branded residences, typically developed in partnership with renowned hotel brands or luxury companies, offer residents more than just a place to live. They provide a range of high-end services, from concierge support and valet parking to exclusive access to hotel amenities like spas and fine dining establishments. This combination of luxury living and five-star services is what makes branded residences particularly appealing to those seeking a hassle-free lifestyle.
