Dubai is rapidly establishing itself as the world’s premier hub for branded luxury residences, with the sector growing at an unprecedented rate. Properties associated with renowned global brands are driving this surge, with buyers prepared to pay premiums as high as 69% per square foot compared to similar non-branded offerings in the same areas.
Adding to the city’s momentum, a new $245 million real estate project—Marriott Residences Sheikh Zayed Road—has been unveiled, marking yet another high-profile addition to Dubai’s portfolio of branded luxury living spaces.
Unprecedented Growth in Branded Living Spaces
According to Global Branded Residences (GBR), over 13,000 branded residential units were transacted in 2024, reflecting a 43% year-on-year increase from 2023. Dubai currently boasts over 132 branded projects, comprising more than 43,000 units, with projections indicating this number will more than double within the next five years. GBR’s data also revealed that premiums on branded homes escalated by 96% during the first half of 2023 compared to the latter half of 2022, underscoring heightened investor confidence.
Drivers Behind the Surge
The influx of high-net-worth individuals (HNWIs) is significantly propelling the expansion. These buyers are drawn by Dubai’s combination of political and economic stability, luxury lifestyle offerings, and strategic investment potential.
Additionally, Dubai’s more flexible land-use policies—especially compared to restrictive environments in European capitals like London, Paris, and Madrid—are allowing developers and architects to create groundbreaking, imaginative structures in prime locations such as Jumeirah Bay Island. This creative freedom further enhances Dubai’s attractiveness as a destination for premium branded properties. Importantly, branded residences have demonstrated strong resilience in times of market volatility, making them a highly appealing choice for investors seeking stable, high-value assets.
Who Are the Buyers?
Industry experts highlight that the majority of investors originate from Russia, China, India, and various European nations. Buyers are predominantly under the age of 50, with a growing proportion comprising tech entrepreneurs and the younger affluent demographic.
Dubai today hosts over 81,200 millionaires, including 237 centimillionaires and 20 billionaires. The city’s ultra-high-net-worth individual (UHNWI) population is anticipated to grow by 30% by 2028, which will likely further stimulate demand in the branded residential sector.
Experts also attribute Dubai’s appeal to its reputation as a safe investment haven, its tax-free environment, and its diverse lifestyle opportunities. Flexible residency programs have further enhanced the city’s allure to global investors.
The Influence of Brand Prestige
Brand identity now plays a critical role in the purchasing decision. Buyers are not merely investing in properties but in comprehensive lifestyle experiences curated by hospitality giants like Four Seasons, Bulgari, and Atlantis The Royal.
Moreover, collaborations are extending beyond hospitality, with partnerships in fashion, automotive, and luxury watch industries shaping the next wave of branded residences. Iconic projects like Armani Beach Residences, Bugatti Residences, and Jacob & Co. Residences are redefining how brands translate their identities into physical living spaces, offering buyers an opportunity to align with distinct aesthetics and legacies.
Branded residences attract a diverse audience, including both discerning end-users and investors seeking prestigious second homes, capital appreciation, or unique lifestyle experiences.
The sector’s resilience during the global pandemic bolstered its credibility, with existing branded properties outperforming standard real estate due to the superior services and stability they provided.
Personalization has become a defining feature, with residences offering highly curated living environments that embody the brand’s ethos, ensuring an exclusive and bespoke ownership experience.
Future Outlook: A Diversifying Market
Currently, Dubai is home to 51 operational branded residential projects, with over 70 more anticipated by 2028. Notably, a significant majority of future projects will be non-hotel branded offerings.
Developers and global brands are deepening their collaborations to cater to the sustained demand. Despite the rapid expansion, experts believe the market still holds ample room for growth, with genuine end-user and investor interest far outpacing available inventory.
New sectors, including fashion, automotive, technology, and wellness, are increasingly entering the branded residences space. Future developments, such as Bugatti Residences and Baccarat Residences, highlight this trend. Looking ahead, the market will emphasize multi-disciplinary luxury living—blending high-end real estate with wellness, sustainability, technology, and personalized lifestyle experiences.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-branded-residences-to-double-as-demand-surges-buyers-ready-to-pay-69-premium
