Dubai’s real estate sector is currently experiencing a surge in branded residential developments, showcasing the heightened demand for luxury living and the willingness of buyers to pay a premium for the exclusivity of a branded residence. The number of branded developments has risen significantly, with over 120 launched in Dubai this year, compared to 69 in 2022. Buyers are willing to pay up to 69 per cent more per square foot for these properties, emphasizing the appeal of branded living.
The city now boasts 121 branded residential developments, with 47 completed and 74 under construction. The average price per square foot for these properties stands at Dh3,852, a substantial premium over non-branded residences in the same prime areas. The allure of branded living, especially for high-net-worth individuals valuing exclusivity, quality, and convenience, is evident.
Buyers seeking a lifestyle rather than just a home gravitate towards branded residences due to the associated prestige and guaranteed high standard of service, design, and amenities. Dubai has emerged as a top hub for branded residences since the introduction of Armani Residences in the Burj Khalifa in 2010, prompting leading hospitality and lifestyle brands to establish flagship projects in the city.
The surge in millionaires in Dubai, with a significant 78 per cent increase from 2013 to 2023, has fueled the demand for luxury properties, including branded residences. International investors, expatriates, and wealthy residents are willing to pay a premium for branded homes, driving the growth of this segment in the luxury market. With the entry of more global brands, the trend of branded residences is expected to accelerate further.
The shortage of premium homes in Dubai reflects the growing ‘buy-to-stay’ and ‘buy-to-hold’ mentality among affluent buyers, where the units are used as primary or holiday homes. This shift in mindset broadens the appeal of the luxury and branded segment to investors globally. Knight Frank’s report indicates a strong interest from 69% of global HNWIs in owning branded residential properties, signifying the growing appeal of this housing segment.
Property values in Dubai have seen a significant 21.3% increase over the past year, with villas outperforming apartments. Villa sale prices have risen by 24.3% in the last 12 months, reaching Dh1,896 per square foot. The emphasis is on offering a complete lifestyle experience to buyers, encompassing exceptional design, architecture, and a range of services including bespoke options tailored to individual needs.
Branded residences, developed in partnership with renowned hotel brands or luxury companies, provide residents with more than just living space. They enjoy high-end services such as concierge support, valet parking, and exclusive access to hotel amenities like spas and fine dining establishments. This blend of luxury living and five-star services appeals to those seeking a hassle-free lifestyle in Dubai’s thriving real estate market.
