Branded residences: UAE real estate’s most lucrative trend

With its designer boutiques and integrated lifestyle experiences, Dubai’s gleaming marble-clad malls are cathedrals to luxurious experiences, affirming a reputation as an epicentre of tier-one living. It’s clear that for the man or woman with designer jewellery, watches, clothes and cars, the next logical step is finding a branded property to store it all.

A recent report on Dubai’s luxury real estate market highlights a fascinating trend. Buyers are willing to pay up to 69 per cent more per square foot for branded residences than non-branded properties in the same locations.

So, why are investors willing to pay such a premium for branded properties? The answer lies in the unique benefits these residences offer.

The association with a prestigious brand enhances property value by providing a package of luxury, quality assurance, and a lifestyle experience that non-branded properties simply cannot match.

For many, the appeal is in the lifestyle – the ability to live in a home that’s serviced by a luxury hotel brand like Fairmont, Rixos or St. Regis, and to enjoy hotel-like amenities within their private space.

The exponential rise of branded residences is impressive when you consider the figures: there are over 120 developments that can be classed as ‘branded residences’ in the UAE, compared to 69 in 2022.

Why branded residences?

Branded residences offer a distinctive value proposition that blends real estate with renowned global brands, offering buyers a promise of exceptional service, design, and long-term value. This segment was first introduced in Dubai with the Armani Residences in the Burj Khalifa, setting the stage for a market that continues to expand at an unprecedented pace.

Today, alongside the Fairmont Residences Solara Tower, investors can invest in properties bearing renowned global marques, including Six Senses, Bugatti, Baccarat, Four Seasons and Bulgari, among many others.

In tandem with the undeniable lifestyle benefits for those residing in branded residences, they outperform as an asset class too, thanks to the undeniable cachet of increased brand awareness, supported by elevated design and better marketing support.

It’s been exciting to see many of our clients benefit from branded residences that deliver higher capital appreciation and better rental yields. Premium finishing and concierge-style management also lend them great suitability as shorter-term rentals.

Read: Dubai cements lead as global hotspot for luxury, branded residences

The Dubai advantage

Dubai’s real estate market, with its global outlook and appetite for luxury, is uniquely positioned to capitalise on the branded residences boom. Downtown Dubai, Business Bay, and Palm Jumeirah stand out as top locations for these projects, reflecting the city’s evolution into a hub for ultra-luxury living.

Branded residences in Dubai are not just about luxury; they also offer exceptional returns on investment. According to the same report, branded residences contribute 12.6 per cent to the overall value of real estate transactions in Dubai.

With an average price per square foot of Dhs3,852, compared to Dhs2,276 for non-branded residences, the financial benefits of investing in this sector are clear.

Moreover, the high demand for branded residences ensures these properties retain their value over time. Whether buyers are looking for a family home or an investment opportunity, the consistent price premiums and higher capital appreciation make branded residences an attractive proposition.

In a market like Dubai, where luxury is not just expected but demanded, branded residences offer the kind of assurance that few other properties can provide.

I believe the future of branded residences in Dubai is bright. As we look to the future, developers must continue to innovate, creating branded residences that offer not just luxury, but also sustainability, design excellence, and a seamless integration of lifestyle and service.

The writer is the managing partner at Refine.