Dubai’s real estate market is experiencing a major change, with branded residences priced at an astonishing 42% higher than non-branded ones. This shift, which was considered to be a high-end strategy for ultra wealthy individuals, has now changed into an attractive opportunity for institutional investors. This growth has added new luxurious benchmarks to the Emirate.
As stated by Hannoush, C.E.O of Morgan’s International Realty, branded residences are driven by Dubai’s luxury dynamics. He continues, “Branded residences have become a core asset class and are no longer a niche segment.”
Branded Residences as Assets: Why Branded Residences Command Premium Prices
Hannoush cites data from Morgan’s International Realty, which shows that the difference between branded and non-branded properties stems from their adoration and demand among the elite classes. For the upcoming year, branded residences are expected to surpass non-branded units significantly.
With his outlook on economic issues and branding, ports priced non-branded units at Dhs 2,321 per square foot, with branded residences fetching Dhs 3288. This marks a striking 42% premium excluding the unmatched living along with unparalleled services, and unmatched prestige affiliated with these brands.
Highly esteemed developments are highlighted by iconic luxury properties like Bvlgari Residences—sitting on Jumeirah Bay Island, it holds the highest price per square foot at 10,668. Others branded properties, which include famed Atlantis Resorts, sell at 9,387, Dorchester Collection at 7,539, and Baccarat Residences at 7,211 closely follow. Adding to the mark is Four Seasons Hotels and Resorts glaringly at 6,829 per square foot. Top Branded Residences in Dubai Bvlgari Residences: Dh 10,668 per sqft Atlantis Resorts: Dh 9,387 per sqft Dorchester Collection: Dh 7,539 per sqft Baccarat Residences: Dh 7,211 per sqft Four Seasons Hotels & Resorts: Dh 6,829 per sqft Luxury properties on the list also include Armani Residences at Dh 5,736, One & Only at Dh 5,155, Six Senses Hotels and Resorts at Dh 4,879, Bugatti Residences at 4,682, Ritz Carlton Residences at 4,342. Beyond just accommodation, these branded residences are a statement of lifestyle, providing unparalleled services and world-class infrastructure, which altogether ensures unmatched branding.
A New Era for Dubai’s Luxury Real Estate Market
Hannouch informs us that in comparison to more seasoned luxury real estate markets such as London, New York, and Paris, Dubai has far surpassed them in terms of price appreciation, volume of new projects, investor interest, and many other factors. Branded properties are no longer a discretionary adder for the wealthy—they are now a fundamental feature of the city’s luxury real estate market.
Dubai continues to be the most active market in the world for branded residences and configuring plans. Following Dubai, other notable hot spots for branded residences, according to Savills, include Miami, New York, London, and Phuket.
Dubai’s Branded Residences: One More Record-Breaking Market
The demand for Dubai branded residences have been nothing short of montagerically explosive. Sales of branded units during the second half of 2024 alone increased by 48%, totalled 7628 sales units, a staggering increase from 5153 units in the previous year 2023. The city currently holds 132 branded residencies with aggregate 43085 units, and in 2024, one property even sold for a record breaking Dh 275 million. In fact, Dubai also brandedDubai also branded residences highest ever recorded price of Dh 17,235 per square foot astonishingly deluxe residence in Dubai.
This phenomenal hike in the demand alongside the acceleration in price indicates the new luxury real estatedubai domain, which considering brand value have been observed as primary factors for fuel to the increase.
Why Investors Are Shifting Towards Branded Residences
Branded branded residences offers customers not only luxury but also markedly high investment returns. Institutional investors can gain guarantee high-security mark from these properties and also achieve sustained stationary capital revenue in long duration period owing to instablility in brand value coupled return baited appreciation. Furthermore, the notoriety of big luxury organizations increase the marketablilty of these properties making it highe value asset not only for high net worth individuals but institutional players too.
Alongside the added cost of branding, these properties are incomparable concerning the service and quality provided, even in comparison to other branded residences. Starting from concierge service available at any time of the day to private pools and spas alongside fine dining services, branded residences provide a sophisticated lifestyle which seamlessly integrates luxury and convenience.
The Future of Branded Residences in Dubai
Given the remarkable growth in demand, it’s evident that Dubai intends to sustain its supremacy in branded luxury living. It’s apparent that the market for branded residences in Dubai is only going to heat up further, especially when considering institution investors looking to take advantage of the growth and more internationally recognized brands wanting to penetrate the market.
In a city renowned for its unbounded innovation like Dubai, its branded residences are already setting the standard for the future of luxury real estate. If the currently ongoing trajectory of progress continues, we can only expect even more developments in the form of high-end branded properties adding to the skyline and market of Dubai.